- About Us
- Legal Services
- Family Law
- Property
- Marriage
- Immigration
- Contact
- Payments
This is a Type 2 example that would also be common. Note that we have covered Type 1 factories such as the articles on a license for soap manufacture as well as the Type 3 factory such as food processing license. Below we will explain the process with a Type 2 bakery called Golden Crust Co. Ltd which is a family owned business.
So in this example Golden Crust Co. Ltd. is a family-owned bakery business. The decided much like the license for a jewelry factory, they decided to expand. The company was already registered and was only a small shop before. The business registration in Thailand was already done. So this is only a scale up of the operation. Likewise see the factory expansion license on here as well.
Firstly speak to us as your Thai company registration lawyers. The new expanded version of the operation includes industrial ovens as well as the packing machines. There are also industrial mixers. The combined horsepower of the machines are over 5 horsepower by still below the 50 horsepower limit. This makes it a Type 2 factory under the Factory Act B.E. 2535 (1992).
Being that it is a Type 2 factory it has to notify the Department of Industrial Works (DIW). Likewise it will also need to comply with various food safety, environmental, as well as the zoning regulations. In addition since it is producing food it also needs to meet specific requirements under the Food Act B.E. 2522 (1979), regulated by the Thai Food and Drug Administration (FDA) as well as the Ministry of Public Health (MoPH).
Firstly they did not opt for an industrial park managed by the Industrial Estate Authority of Thailand (IEAT). Zoning would have been there already as well as the water and electrical infrastructure. A good example of this would be the Bangpoo Industrial Estate in Samut Prakan which offers facilities for textiles, food processing, and light manufacturing.
The opted for a location closer to where they already where. They then conducted a zoning assessment under the City Planning Act B.E. 2518 (1975) to ensure the factory location complied with land-use regulations. This was built in the light industrial zone which allowed for food manufacturing. The needed approvals were obtained from the local government or municipality. They confirmed in writing that the land zoning was correct for the industrial bakery. This is why a factory license lawyer is needed to ensure that the plans are legal and correct. This even though a Type 2 does not require a license either but only notification.
Firstly you will need to take a look at the hygienic design of facilities. The floor as an example will need to be made of a smooth, non-porous surface. This to assist with cleaning and preventing any contamination. There also has to be separate zones in the factory for the raw materials from storage to production. You don’t want contamination. Like a restaurant there also has to be handwashing stations at all entry points, equipped with soap, hand dryers, and sanitizer dispensers.
Second is the Good Manufacturing Practices (GMP) which is explained elsewhere on this website. This is explained in more details elsewhere but these are the GMP guidelines which was released by the MoPH Notification No. 193/2543 (2000). In addition all machinery and equipment needs to be made of food-grade stainless steel, ensuring compliance with safety standards. Lastly there is also the issue of pest control.
Thirdly the issue of Hazard Analysis and Critical Control Points (HACCP). This is a plan to ensure that there are no hazards during production or storage when it comes to contamination. Backing temperatures as well as storage conditions need to be closely inspected. There needs to be a monitoring system for this.
Fourthly is the issue of environmental compliance.
Golden Crust decided to install a grease trap and wastewater treatment system. This was to handle discharge from the cleaning and food preparation areas. Likewise the water also needs to be inspected under the Enhancement and Conservation of National Environmental Quality Act B.E. 2535 (1992). Lastly the organic waste from food preparation was segregated and sent to a local composting facility.
Lastly there is also the issue of worker safety and training. Likewise all employees were trained on GMP. These included personal hygiene, and safe handling of food products. There was also additional training for those who work with the machinery. Not only operation but also with the emergency shutdown procedures. In addition there are the personal protective equipment (PPE), including gloves, hairnets, and aprons, was mandatory for all production staff.
The company had to notify the DIW of its Type 2 classification and provided required documentation. This included but not limited to
• Factory layout plan.
• Machinery specifications, including power usage. (horsepower usage)
• Fire safety plan and emergency exit details.
• The bakery must register with the Thai Food and Drug Administration (FDA) under the Food Act B.E. 2522 (1979). This would include inspections to verify adherence to Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control Points (HACCP) principles. Likewise they had to submit an application with production flowcharts, raw material sources, and packaging details.
• If the bakery’s annual revenue exceeds THB 1.8 million, it must register for Value-Added Tax (VAT) with the Revenue Department.
• The bakery must ensure that the factory location complies with zoning laws under the City Planning Act B.E. 2518 (1975).
• Obtain a building permit from the local municipal office if new construction or renovations are involved.
• Fire safety measures must meet standards under the Factory Act B.E. 2535 (1992).
• Likewise they had to notify the local environmental authorities about the factory’s wastewater and waste disposal systems under the Enhancement and Conservation of National Environmental Quality Act B.E. 2535 (1992).
• Since they are catering to Muslim customers, they obtained a Halal certification from the Central Islamic Council of Thailand (CICOT).
The initial FDA failed for a few reasons. Firstly there was inadequate separation of raw and finished goods. This was corrected as it was resolved by building additional storage rooms and implementing stricter workflow controls. Secondly the surprise inspection revealed lapses in worker hygiene, such as improper use of gloves. In addition they introduced a daily checklist for supervisors to ensure all staff followed hygiene protocols.
Lastly some of the nearby residents complained about odors. The factory the installed better ventilation as well as a better exhaust system to minimize odors and improve air quality. Likewise speak to us as a well known law firm in Thailand.
Firstly after some corrective actions the factory passed its FDA inspection and was certified under GMP and HACCP standards. Likewise in the interim production capacity was doubled. What we have learned from this was that a small-scale bakery to a Type 2 factory by proactively addressing food safety, environmental, and operational challenges.
The information contained in our website is for general information purposes only and does not constitute legal advices. For further information, please contact us.
