Type 1 Factory – Handmade Soap Factory

When we look at small business in Thailand, specifically small mom and pop operations. You note that they do not really require a factory license for a Type 1 factory operation. Lets take an example of another hypothetical company. Natural Beauty Co. Ltd. is a small Thai business that produces handmade soaps using manual processes and minimal machinery. Speak to us as a law firm in Bangkok. We are a well known law firm that has many lawyers so see our English speaking lawyer in Bangkok. You are going to need our Thailand FDA licence lawyers for assistance as we have shown below. 

This is a small business and their operation includes blending ingredients and packaging of hand made soap. There are only 3 workers and the machinery uses less than 5 horsepower. Under the Factory Act this would by definition and limited scope be a Type 1 factory under the Factory Act.

So we can see that it is not really and industrial operation. These type of operations have minimal environmental impact as well as limited risk. The low horsepower makes this a small scale operation with limited waste and emissions. Even though they would not normally need a license from the Department of Industrial Works (DIW). They must comply with the following:

• Operate within the zoning laws under the City Planning Act B.E. 2518 (1975).
• Comply with basic safety and environmental guidelines.
• Obtain any permits required for their industry (food production may require FDA approval).

Likewise their waste disposal as well as noise levels and air emissions must comply with the Environmental Quality Promotion Act B.E. 2535 (1992). Lastly their wastewater must not harm public water sources. Note however that if the soap is classified as cosmetic then it will require an additional license and permit.

Should you classify your soap as a cosmetic product, then it will fall under the Cosmetic Act B.E. 2558 (2015). The definition in Thailand as cosmetic is that the product is intended for cleaning, beautifying, or enhancing skin appearance. Likewise handmade soap is usually classified as a cosmetic if sold for skincare. So you will need to obtain a cosmetic license as well. You can also contact the factory license lawyer for assistance for assistance with the cosmetic license. You will need to complete the following.

Notification Submission:

You must now register the product formula with the Thai FDA.

Ingredients Review:

Likewise you must ensure compliance with FDA-approved ingredient lists. Speak to our Thailand FDA lawyer.

Labeling Requirements:

The labels on your soap must include the following. Firstly the products name as well as the registration number. Secondly the ingredients must be listed. Likewise the details or the manufacturer. Lastly there must also be using instructions and precautions. See the back of any soap sold in Thailand. Likewise the labeling must be in the Thai language (and additional languages if desired).

Even though the small factory was in a mixed use zone. It must still comply with the zoning laws. The municipal office will verify this for you. This way you have zoning verification. The next thing is safety compliance. You should only store essential oils and other non-hazardous materials in small qualities. You can also find this under starting a restaurant in Thailand where the kitchen must have limited flammable oil or notify the fire department in the area.

Natural Beauty Co. developed a basic safety plan. This also included fire extinguishers and proper ventilation, aligning with Section 8 of the Factory Act, which mandates operational safety. This falls under the Section 8: Rules for Factories. You can see what is required for operating a manufacturing business. So even no factory license was needed, they still had to inform the local authority about the business and its operations. Likewise to ensure that there are no future disputes. Lastly a Type 1 factory normally does not require an Environmental Impact Assessment (EIA) .

Finally note that we have other examples on the website about starting your business. This is a Type 1 factory but you can also see how more complex a Type 3 factory license is. See the articles that we wrote on the factory license for manufacturing as well as the factory license for food processing. Should you have any questions about the example then speak to us online or send us an email. Start your soap factory today with our assistance.