The 9 Most Vital Information About Thailand’s New Factory Act, B.E. 2562

The 9 Most Vital Information About Thailand’s New Factory Act, B.E. 2562

Do I would like to use factory license previous to renting a factory in Thailand?
For anyone serious about setting up a factory in Thailand or starting a business in the factory enterprise, you need to know some information regarding Thailand’s New Factory Act, which goes into effect on October 27, 2019. The following is a summary of the significant details of the new Act as well because the differences from the earlier one:

How is the new Act higher than the former one?
The Thailand Factory Act was amended to increase the flexibility of the factory sector. Consequently, each small and large factories will be able to operate more agilely, while regulation rest by way of rigorous environmental concerns and risks stays unchanged.

The scope of the word "factory" in the new Act.
In the former Act, a factory refers to a building, place, or vehicle that has not less than 7 workers or makes use of machinery with a total energy of 5 horsepower or more. According to the new Act, the definition of a factory is a building, place, or vehicle that has not less than 50 employees or uses machinery with a total power of 50 horsepower or more.

People are still totally protected, just as they have been under the former Act
Although Thailand’s New Factory Act will benefit the factory companies to be able to operate smoothly as mentioned above, the folks and residents around the factory will still obtain one hundred% protection, just as they received under the former Act.

Is the renewal of the factory operation permit (Ror. Ngor. four) still required?
According to the new Act, the criteria for making use of for a factory permit in Thailand, whether or not operators operate common factories or small and medium enterprises (SME) with machinery less than 50 horsepower (or 50 workers), they don't have to renew the factory operation permit every 5 years.

A factory that already has a factory operation permit does not need to use for a new one.
According to Thailand’s New Factory Act, a factory that already has a factory operation permit, even if the horsepower or number of staff is reduced to less than 50, is still considered as a factory licensed under the criteria for applying for a factory permit in Thailand until it notifies the termination of the factory operation.

Using private auditors instead of government officers
The new Act authorizes private inspection agencies which have been licensed or accredited by the federal government agency to examine factory businesses. As a result, factory companies would not have to wait to be inspected by just authorities officers.

ualifications of private auditors
Although the revised Thailand Factory Act permits private auditors to audit the factory, the private auditors must have a valid license with the following qualifications:

The auditor must have a license for professional apply in engineering, science, or technology.
The auditor will need to have a minimum of 5 years of expertise in electrical, environmental safety, chemical, mechanical, civil engineering, or different relevant fields.
Although Thailand’s new Factory Act will assist to accelerate audits by using private auditors, the auditors will need to have qualifications and experience as specified by the Department of Industrial Works. This is to keep up standards and strictness by way of safety.

Growing the rigor of self-certification
Thailand’s New Factory Act requires factory operators to perform self-declared, known as self-certification, for a specified interval to ensure that their operations are in accordance with the law.

How you can switch a factory operation permit to another factory operator?

A factory operator that's unable to operate its factory after obtaining a factory operation permit can switch thefactory operation permit to a different factory operator following the procedures for acquiring a factory operation permit in Thailand and the conditions as follows:

A factory operator that wants to switch a factory operation permit should submit a request for the license switch within 30 days after buying, selling, or renting a factory has been approved.
The request will be entitled to be a licensee pending consideration.
A factory operator making use of the application for the licensee within 30 days can proceed to operate the factory immediately. Even when it is pending approval, it is deemed that the applicant has turn into a licensee.
Every time the factory operation permit is transferred, the original licensee will now not have the precise to lease or purchase the factory.
In conclusion, the Factory Act (No. 2), which is the new modification that has been in effect since 2019, can facilitate obtaining a factory operation permit in Thailand to be more handy and flexible. On the same time, the new Act can oversee company operations so that they are safe for the surroundings, the general public, and the country’s financial stability.

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