- About Us
- Legal Services
- Family Law
- Property
- Marriage
- Immigration
- Contact
- Payments
Lets take the example of AutoParts Pro Co. Ltd.. The company was setup as a joint venture with a Japanese investor. They decided to start the factory in Rayong to manufacture auto parts, mainly for the car engines. The factory would employ about 300 words and use 200 horsepower machinery.
Firstly this falls under the Type 3 type factory in Thailand. In Thailand the factories are grouped in either Type 1 or Type 2 or a Type 3 factory under the Factory Act, B.E. 2535 (1992). So the definition would be a Group 3 Factory is factory of the type, kind, and size as to be granted a factory permit prior to the engagement.
The company was registered as AutoParts Pro the DBD and also applied for Board of Investment (BOI) incentives. See the article that we wrote on business registration in the country. For large investments in Thailand you might want to see the inceptives in Thailand under the BOI. Likewise the Board of Investment granted the corporate tax exemptions. Likewise they also ensured that the factory permit where expedited. This is why it is always best to ensure that you use a factory license lawyer in Thailand for your investment.
When setting up a factory in Thailand the zoning laws will always be there. You will need to ensure that you have the proper zoning for what it is that you wish to do. See the article on zoning in Thailand. There is a link to the government website to see the address and what zone it is in. The factory however chose to use an industrial estate in Thailand that was sited in an IEAT-managed industrial estate. Likewise this ensures automatic compliance with zoning regulations.
Lets take an example of the Eastern Seaboard Industrial Estate in Rayong. The industrial estate was created to focus on petrochemical and automotive industries. The industrial estate is very close to the Laem Chabang Port, Thailand’s largest deep-sea port. If you need an English speaking lawyer in Bangkok then speak to us.
Since the factory was involved heavy machinery and emissions, an EIA was required. The company AutoParts Pro also implemented a workplace safety plan. Likewise complying with the Cleanliness and Orderliness Act (No. 2), B.E. 2560 as well as the Occupational Safety, Health, and Environment Act B.E. 2554 (2011).
The company submitted the following to the DIW:
• EIA approval letter.
• BOI certificate.
• Detailed machinery and process descriptions.
• Safety and waste management plans.
• Inspection and Licensing
So everything was submitted as after two inspection the DIW approved the license. You will note that there about 6 months from application to the factory functioning. This however did not come without any challengers. However having said that, operating out of an industrial part in Thailand makes everything more simple. Firstly the zoning is an not issue as it is complete. Likewise there are not infrastructure challengers as well as electricity as well as water has also ready been provided by the park. This can be very difficult so contact a law firm Bangkok for assistance such as us.
So we only had a small delay as the machinery had to be approved again. So there was a small delay in installation and the timeline to production. This was easy enough as with the BOI expedited customs clearance and approvals additional certifications on the machinery could be completed.
Should you have any issues or questions about production in Thailand then speak to us online or in person. Our contact details has been added below. Note there are also other stories we have such as starting a pharmaceutical manufacturing plant in Thailand as well.
The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.
