This post is about how to set up a factory in an industrial estates, which are governed by the Industrial Estates Authority of Thailand. If you are a foreigner and want to own the factory without having to have a local partner, it is possible. Your business may be eligible for Thailand BOI.
Following is the steps involved in setting up a factory in an industrial estate:
- Fill out an application for land estate utilization, called Kor Nor Aor 01/1, which requires information such as type of operation, manufacturing process and requirement of utility and submit it to the Industrial Estate Authority of Thailand.
- In case of construction of a factory, you also need to fill out an application for construction, called Kor Nor Aor 02/1. The plan needs to be approved by an architect and an engineer concerning the design and strength of the building, Then you will receive an approval for construction called Kor Nor Aor 02/5. If you are going to rent the factory, this step will be skipped.
- Fill out an application for starting the operation, called Kor Nor Aor 03/1, and submit it to Industrial Estate Authority of Thailand in order to start the operation. With this form, you need to present a certified factory layout, waste water treatment system and air pollution treatment system.
The incentives for factories located in General Industrial Zone and IEAT Free Zone
Non-Tax Privileges for General Industrial Zone and IEAT Free Zone
- The right to possess land in an industrial estate.
- The right to bring foreign experts and skilled workers to Thailand along with visa services and work permits.
- The right to bring spouse, children and dependents of foreign experts and skilled workers to reside in Thailand with visa service.
- The right to send foreign currency out of Thailand.
- The right to get additional benefits from the BOI in case of obtaining an investment promotion
Tax Privileges for IEAT Free Zone
- The right to get non-tax privileges mentioned above.
- The right to get additional tax privileges
- The right to get an exemption from import duties, value added tax and excise tax for machinery, equipment, raw materials and supplies used in the production.
- The right to get exemption of export duties, value added tax, excise tax for imported materials for production or commercial operation.
- The right to get exemption of export duties, value added tax, excise tax for raw materials, products and by-products from the production.
Contact Thai Lawyers Ltd. for all your business needs in Thailand.