In Thailand, a factory means a building, place or vehicle which uses a machine from five horse powers or an equivalent thereof or more or which employs seven workers or more with or without any machine for manufacturing, producing, assembling, filling, repairing, maintaining, testing, improving, altering, transporting, keeping, or destroying anything in accordance with the type or kind of factory as provided for in a ministerial rule.
Establishing a factory is governed by Thai factory law, Factory Act, B.E. 2535 (1992). Under this Act, factory is categorized into 3 groups:
- The first group of factory can operate or manufacture any time upon desire of the manufacturer. However, the manufacturer has to follow the regulation under ministerial regulations.
- The second group of factory can start manufacturing after the manufacturer has notified to the officer. The manufacturer has to follow the regulation under ministerial regulations.
- The third group of factory has to get an approval or permit from the officer before operating a factory.
Moreover, the total amount of horse power and the total amount of employees are all required in order to be able to determine the type of factory business in Thailand.
All types of factory can be established anywhere except in the restricted places such as residential areas and near public places such as schools, temples, hospitals, etc.
For more information on establishing a factory business in Thailand, contact ThaiLawyers.com.