Guide to a Factory License in Thailand

G.A.M. Legal Alliance > Thailand Factory License > Guide to a Factory License in Thailand

This will explain the guide to a factory license in Thailand. If you are going to open a factory in Thailand, then this is an overview of the step by step process of obtaining a factory license (Ror Ngor 4). The guide to factory license in Thailand is explained below.  The process is regulated by the Department of Industrial Works. Likewise the (DIW) and other relevant authorities. Below is a step-by-step guide. Should you need a factory license lawyer then speak to us online. Lastly also see the penalties when you break the law in this regard. There are a number of Thailand lawyers so better to speak to us today.

Guide to a Factory License in Thailand

Factory License in Thailand

So if you are stating, expanding, or renewing a factory in Thailand. Then there are very specific procedures set by the Department of Industrial Works (DIW) as well as by other relevant authorities. You will also note that the process varies depending on the type of factory. There is the Type 1, 2, or 3 factory types. Listed below we have also added the general steps for application submission, document preparation, factory inspections, and regulatory compliance.

Factory License Application Process (Factory Type 1, 2, and 3)

Step 1: Preliminary Requirements

Before applying for a factory license, certain preliminary steps must be completed, including obtaining business registration and environmental clearance. There is a list of examples of these factories. You can see a Type 1 Factory, Type 2 factory as well as a Type 3 factory as examples. We started the guide to a factory license in Thailand with a breakdown of the type of factories. 
 
 
Type 1 and 2 Factories:
 
• Business Registration: You need to register the company with the Department of Business Development (DBD) under the Ministry of Commerce.
 
• Zoning Compliance: See that you property is in the correct zoning for the factory. Likewise you will need to ensure the factory’s location complies with local zoning laws and obtain a zoning certificate.
 
• Feasibility Study: No for all factories especially with the Type 1 and Type 2 factories. So depending on the size and impact, a feasibility study may be required to evaluate the factory’s potential.
 
• Environmental Impact Assessment (EIA): If applicable, obtain an EIA to assess environmental risks.
 
 
Group 3 Factories:
 
• Public Hearing: Note that the Type 3 factories must undergo a public hearing. This comes before you submit the application. Likewise everywhere else the process ensure that the community’s concerns regarding the factory’s potential environmental and health impact are addressed.
 
• Environmental and Health Impact Studies: There are complicated factories that will need to have an EIA or HIA must be obtained. As an example we wrote two articles on the Type 3 factories to show that. The article on food processing as well as an engineering factory. There you will note that particularly if the factory poses a significant environmental risk. Lastly the food processor need additional permits such as a food license as well 
 
• Many prefer to opt for the IEAT-managed industrial estates as the zoning has already been covered for your factory. Depending on the factory you might also need to comply with the following laws. These are the The Food Act B.E. 2522 (1979), The Drug Act B.E. 2510 (1967), The Cosmetics Act B.E. 2558 (2015) as well as the Herbal Products Act B.E. 2562 (2019) as an example.
 
 

Step 2: Application Submission

So, once you have all your documents in order you now have to submit the application form (Ror Ngor 3) along with supporting documents to the DIW or provincial authorities. The guide to a factory license in Thailand is expanded again. The required documents typically would include:

Company Registration Documents:

• Copy of your company’s registration certificate from the DBD.

• List of shareholders Read the article that we wrote on this (issued within the last six months).

• Tax identification number and VAT certificate.

• Land Ownership or Lease Agreement for the factory site.If you are in an industrial park then a copy of the lease agreement.

• Factory Layout and Design: This includes detailed factory layout plans and machinery placement.

• Environmental Documentation: Including an approved EIA or HIA (if required).

• Machinery Specifications: List of machinery with details on power rating, purpose, and quantity. See the issue with power ratings are explained in our article which was based on an example. The power ratings in the end must match the power rating on the application form. The inspectors will deny the factory license of they don’t match.

• Safety Compliance Documents: Including a workplace safety plan and fire prevention plans.

 

Step 3: Inspection and Evaluation

Now once all the documents have been submitted the government will then begin the inspection. This is to ensure that the factory complies with with local zoning, safety, environmental, and operational regulations. You will note that Type 3 factories undergo a more rigorous inspection. There may also be the need for additional licenses. If discrepancies are found in the documents, the application may be rejected, and you will be instructed to correct and resubmit the required documentation.

 

Step 4: License Issuance

So, one they have confirmed that compliance is correct as well as the fees having been paid, the factory license (Ror Ngor 4) will be issued. The license can be picked up or mailed to the lawyer or applicants address.

 

Factory Expansion Process

If you are deciding to expand you factory, then you will note that the process for a license to expand you factory involves similar steps to the initial factory license application. There will however be additional documentation. This is to reflect the changes in capacity, operations as well as the environmental impact.

 

Step 1: Preliminary Review for Expansion

Likewise you will be applying for a factory expansion license. In addition you will need to ensure the expansion complies with all regulations:

• Updated Feasibility Study: Since this is an upgrade or expansion then the original feasibility study is required. This is if the expansion introduces new machinery. Most times the factory expansion will also increase production capacity likewise any changes the factory’s operational scale.

• Updated Zoning Compliance: Not normally needed with an expansion of a factory. However you might have changes as you might have added an additional line of product. Likewise should the expansion area change. Then should the nature of the land use change, then a new zoning certificate may be necessary.

• Environmental Impact Review: Lastly if the expansion affects the pollution levels of the factory or the water use, or emissions. Then a new EIA or HIA must be conducted.

 

Step 2: Application for Expansion

You will need to submit an expansion application (Ror Ngor 3) along with the updated documents:

• Revised Factory Layout and Design: Since there will be new additional equipment. Then the new blueprints of the factory as well as the machinery placement for the expanded area.

• Environmental Impact Studies (if applicable).

• Revised Safety Plans: Likewise you will also need the updated safety protocols. This is to cover the expanded facility compared to the old.

 

Step 3: Inspection

Likewise when you began the factory. In addition to the original inspection. This will have to be done again. They will again look at the compliance with zoning as well as safety and the environmental regulations again.

 

Step 4: Expansion License Issuance

Now that the expansion of the factory has been registered and inspected. All regulations have been complied with. Now they will issue the expansion license (Ror Ngor 4). The factory can then use the expanded operations area legally.

 

Factory License Renewal Process

The renewal of a factory license ensures that the factory continues to operate legally and in compliance with the regulatory requirements. This is the renewal process for the factory license. This is the last part on our guide to a factory license in Thailand. Lastly you may also need a Thai notary public as well as having documents translation Thai-English as well. 
 

Step 1: Renewal Application

 
• Application Form (Ror Ngor 3/1): This form need to be completed and submit the renewal application form. Note that this is along with the required documents as before. See and download the form of our factory license documents page.
 
• Payment of Fees: There are also the payments fees for this. The fees for this is set by the Ministerial Regulation and must be paid. Note however that should the renewal application be submitted after the expiration date but within 60 days, then a 20% fine will be charged.
 
 

Step 2: Inspection

 
Note that the pre-renewal inspection will be conducted. This is done to confirm that the factory still meets all operational standards. Should any issues arise, the renewal may be delayed or denied. See the documents for this above.
 
 

Step 3: Review and Issuance

 
Lastly, you will note that should the factory pass the inspection and the renewal fees have been paid. Then only will the renewed license be issued. The license will wither be collected or mailed to you or your Thai lawyer. Should the factory not have been completed the inspect or failed its inspection then an acknowledgment document will be issued in place of the renewed license.
 
 

Submission of Documents and Authorities

 
You will need to ensure that the documents for renewal or expansion for the factory is summitted to the following, depending on where the factory is located. 
 
 
· Department of Industrial Works (DIW): The central DIW office this offices manages all the larger factories (Type 3 factories) likewise anyone dealing with the when they are dealing with hazardous materials. The DIW tends to process the applications where the factories are complex and where there must be special consideration for environmental or safety compliance.
 
· Provincial Industry Offices: These offices located in Thailand may handle smaller-scale operations (Type 2 factories) or those located in specific provinces. Now depending on the size of the factories and location they may also be responsible for processing applications and conducting inspections.
 
· Industrial Estate Authority of Thailand (IEAT): For those who have a factory in an industrial estate then the IEAT may process applications for factory licenses and expansions. You will note that many of these industrial estates also benefit from the streamlined procedures and reduced regulatory burdens, depending on the nature of the industrial park. Speak to us a s well a well known English speaking law firm in Bangkok.
 
 
 

Required Documents for Submission

 
These are some of the documents needed. Note that there may be additional permits you might need depending on what the factory manufactures. As explained making soap requires a license from the Thai FDA looking at the ingredients, packaging and other factors. Each type of product may need additional permits.  
 
 
Company Registration Documents: 
 
• Copy of the company’s registration certificate from the DBD.
• List of shareholders (issued within the last six months).
• Tax identification number and VAT certificate.
 
Factory Documents: 
 
• Land Ownership or Lease Agreement for the factory site.
• Factory Layout and Designs: Including machinery placement plans.
• Engineering Designs: Structural diagrams and building blueprints.
 
Environmental and Safety Documents: 
 
• Approved EIA or HIA (if applicable).
• Waste Management Plan: including wastewater treatment and emission control.
• Machinery and Process Details: Specifications of the machinery used in the factory and details about the manufacturing process.
• Safety Compliance Documents: Including a workplace safety plan and fire prevention plans.
 
Additional Permits (if applicable): 
 
• Hazardous substances handling permits.
• Building construction permits (if the factory is newly built).
 
 

Conclusion

Depending on the factory you wish to start. Look at at the page on factory license in Thailand on this website. Also see an example of Type 1, Type 2 and Type 3 types of factories as an example as well. Speak to us as a law firm in Thailand for more assistance and information.
 
 

The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.

“business

 

Business Support