First of all, the premises must be located away from public spaces and dwellings and must not cause noise nuisance to others. For all these reasons, the operator must obtain a license from the Department of Industrial Works, along with the following documents:
|➤ The application form for a license|
|➤ Affidavit of the company|
|➤ A plan or diagram showing the industrial area|
|➤ A plan detailing the machinery, certified by an engineer or a person designated by the Department of Industry|
|➤ A plan detailing the plant building, certified by an engineer or person designated by the Department of Industry|
|➤ A plan, layout or written explanation detailing all measures to prevent noise pollution; potential damage, hazards to others and the environment (waste control, pollution etc.)|
The applicant who wishes to build outside Bangkok, must submit his application to the Provincial Industries Office or in some cases to the Tambon Administration Organization.
Once the application is submitted to the competent authorities, a governmental agent will proceed with an inspection of the factory site and all its infrastructures, as well as a control of the polluting agents. The agent will then give a report of all the elements controlled to the Ministry, within 30 days following the request. After receiving the report, the Ministry will give its answer within 50 days, and if approved, you can receive your license to start your economic activities.
The license will be valid for a period of 5 years, and renewable before the expiration of the license for a total price of 100 000 baht additional.
CAUTION: If the application is submitted within 60 days after the expiration date, then the applicant will have to pay an additional fine of 20,000 Thai baths. And if the applicant fails to apply for renewal after 60 days of the expiration date, the application will be treated as a new license application.
The procedure will take about 1 day and the required documents are as follows:
|➤ 3 copies of the submitted application|
|➤ 10,000 Thai Baht license fee (excluding VAT)|
|➤ For an individual: (3) copies of registration of establishment (landowner) and copy of passport or identity card|
|➤ For a legal entity: (3) copies of company registration and affidavit, dated within 6 months|
The procedure will take about 50 days and the required documents are as follows:
|➤ (3) copies of the application|
|➤ Fees and permit to build the factory|
|➤ 20 Thai baths|
The procedure will take about 18 days and the required documents are as follows: (3) copies of the permit application.
For each step, other documents will be requested depending on your situation.
According to Article 67, paragraph 2 of the Thai Constitution, any project or activity that may seriously damage the environment, natural resources, biological diversity and health shall be prohibited unless it is authorized after an inspection by the competent authorities.
Under this article, the Ministry of Natural Resources and Environment, through the approval of the Cabinet and National Environment Board (NEB), has announced a list of 11 industrial activities, which are likely to produce a severe impact on the environment and health, and for which an impact study must be conducted.
Factories in certain industrial sectors will have to pay environmental taxes, whether on their products, permits or excise duties (e.g. oil).
Any plant that poses a serious danger to the public or to property in the plant or its vicinity may be ordered to immediately cease operations or to make the necessary modifications to stop the danger.
The Department shall have the power to order the relocation of all or part of the plant to a location that does not pose a threat to man or property. The Department will have the opportunity to inspect any suspected malfunction and may take action accordingly.
In conclusion, the Factory Act, regulates the activities, organization, structure, limits and everything that has to do with factories. In addition, the Ministry of Industry has the power to inspect, amend regulations, close down factories and issue licences. Moreover, it promulgates all the provisions that must be respected.
You will be able to create your own company, owning 100% of the shares even if you do not have Thai nationality. The industrial sector is particularly open to foreign companies and allows for tax exemptions and benefits in kind (work permits for foreigners).
Then, in order to start your economic activities you will have to obtain a license, under certain conditions (category 3). In addition, the industrial sector is highly regulated and requires the payment of environmental taxes in order to preserve the environment, natural resources, biological diversity and health.