Supervision of the Factory

Factory Act covers the running a factory business as well. The legalities are listed below but this is only a summary of the Act. Speak to our factory license lawyer about the Act in the original Thai as well. This is only for academic purposes so you can get an overview of the law. Likewise see also the articles that we wrote on the signboard tax Thailand for your factory as well as the article on Thailand income tax for foreigners if you are an expat starting a business. 

Section 7: Factory Classifications

The Minister can create rules to classify factories into three groups based on how they might affect people or the environment. Here’s how they are classified:

1. Group 1 Factory: These factories can start working right away as soon as someone wants to begin.

2. Group 2 Factory: These factories must let the government know before they start operating.

3. Group 3 Factory: These factories need to get a special permit from the government before they can open.

When the Minister makes an announcement about this, any factory mentioned will automatically be classified as a Group 3 factory. Likewise also see the business license Thailand article when you start the business as well as the article on the Thailand business registration as well.

Section 8: Rules for Factories

The Minister can also set rules that all factories must follow, including:

1. Where the factory is located and what the building is like.

2. What kind of machines and equipment can be used.

3. What qualifications workers need based on the type of factory.

4. How to handle production safely to avoid accidents or problems for people nearby.

5. How to manage waste and pollution.

6. What documents factories must keep for inspections.

7. What information factory owners must regularly update.

8. Any additional safety rules to protect workers and the public.

Some factories might be exempt from certain rules, and the Minister can update rules based on changing social needs.

Section 9: Factory Inspections

If the government needs to check a factory or its machines, they can assign someone to do it and write a report instead of requiring government officials to do it themselves.

Section 10: Group 1 Factory Responsibilities

Owners of Group 1 factories must follow the rules set by the Minister.

Section 11: Group 2 Factory Responsibilities

Owners of Group 2 factories must also follow the rules and notify the government before starting operations. They will receive a notification receipt confirming they can operate. If there are any issues with their notification, they must fix them within seven days. If they sell, transfer, or lease the factory, they must inform the government within thirty days.

Section 12: Group 3 Factory Responsibilities

Owners of Group 3 factories need to get a permit from the government and must follow all related rules. They cannot start their factory until they have this permit. When applying for a permit, the government will consider safety and other regulations.

Section 13: Starting Factory Operations

If someone with a Group 3 permit wants to start operations, they must notify the government at least fifteen days beforehand. If they want to test their machines before opening, they also need to give notice.

Section 14: Permit Duration

Permits are valid until the end of the fifth year after starting the factory. If they plan to stop the business or move it, the permit expires when a new permit is issued or when the business shuts down.

Section 15: Renewing the Factory Permit

If you are going to renew the factory permit. You need to do this before it expires. If your factory meets safety and operational standards. Then the government will renew the permit. Should it not be renewed then you will be given time to fix the current issues. If its not renewed you have to apply from scratch.

Section 16: Appealing Factory Permit Decisions

Should the permit be denied then you can appeal this to the Minister within thirty days. The Minister’s decision however would be final.

Section 17: The Small Factory Definition

If it uses machines with less than 5 horsepower or employs fewer than seven people. Then, it will be considered a factory under these rules until it’s officially closed or the permit expires.

Section 18: Expanding the Factory

If you wish to expand the factory you will need permission. The same rules apply as the application for the permit as well as appealing the permits. This applies for expansions as well.

Section 19: Factory Machine Changes

Should you want to change the machines or increase the size of the factory. This without it being considered an expansion. Then you must inform the government within seven days.

Section 20: Changing Factory Permit Conditions

A written order will be issued when the government considers changes to conditions of a permit. You can appeal this decision to the Minister.

Section 21: Factory Ownership Changes

If you sell the factory or lease, or transferred it. Then the new owner must apply for a permit within seven days without paying a fee. Note that the operations can continue during this period.

Section 22: Death of Permit Holder

If a permit holder dies, their heirs must apply for a permit transfer within ninety days. If they don’t, the permit will expire.

Section 23: Displaying Permits

Permit holders must display their permits visibly in their factories.

Section 24: Factory Name Changes

If a factory or permit holder changes their name, they must notify the government within fifteen days.

Section 25: Lost Permits

If a permit is lost or destroyed, the holder must apply for a replacement within fifteen days.

Section 26: Moving Factory Machinery

Should the permit holders of the factory want to temporarily move their machines. Then they must apply for permission. Likewise provide details about the move. If granted, then it valid for 1 year only.

Section 27: Moving the Factory

Should you as the permit holder want to move the factory. You have to start the process by establishing a new factory.

Section 28: Bringing Factory Operations to a stop

Should the factory stop, then the permit holder must notify the government within 15 days. Likewise changing from a Group 3 factory to a Group 1 or 2 factory, they will need to follow the same rules.

Section 29: Classifying Factories

If rules change and a Group 1 or 2 factory becomes a Group 3 factory, the owners can apply for a permit within thirty days of the new rules taking effect.

Section 30: Industrial Zones

The Minister can designate certain areas as industrial zones, where Group 2 and 3 factories may not need to notify the government before starting operations.