There are 3 types of place in Thailand where a factory can be located; industrial estates, industrial parks and other areas (elsewhere outside the first two types). The difference among the three types is as follows.
- Industrial estates
An industrial estate is an area of land specified for industrial purpose providing infrastructure like electricity, water supply, public utilities and other incentives. Industrial estates are divided into two types namely, general industrial zone and IEAT free zone. A factory located in an industrial estate does not need to get a factory license from the Department of Industrial Works. However, there are forms to file with the Industrial Estate Authority of Thailand (IEAT).
- Industrial Parks
Industry Parks can be divided into 2 types; inside industrial zone and outside industrial zone.
The inside industrial zone is better than the outside industrial zone because of facilities such as water supply and electricity supply. Therefore the rent rate is higher.
All types of factory in the inside industrial zone can be operated by submitting an application form, called Khor 1 at least 15 days before operation. After that the official will inspect the area and issue a certificate, called Khor 2.
- Other areas
To set up a factory in other areas outside industrial estates and industrial parks, the factory operator has to apply for a factory license which needs many requirements such as waste water treatment system certified by an environmental engineer, building plans certified by a civil engineer, etc.
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