Factory License in Thailand

What Is The Factory Act In Thailand?

The Factory Act of 1992 stipulates regulations for factory establishment and operation, factory expansion, and safety requirements. The Act also imposes strict controls on industrial pollution and is administered by the Department of Industrial Works of the Ministry of Industry in Thailand who ultimately issues factory licenses.

Definition of a Factory?

A factory refers to any premise that utilizes machinery equivalent of up to five or more horsepower or that includes seven or more workers, either with or without the use of factory machinery, for producing, manufacturing, packing, assembling, maintaining, repairing, processing, testing, conveying, storing, improving or destroying anything included in the types or classes of factories presently listed with the Ministry of Industry that aren't operated or owned by government agencies for national security or safety reasons.

Not all factories described requires a factory license. Certain factories merely need to notify the Ministry and can commence their operations once they receive a letter that clarifies their approval. This will likely be the case if the intended business operations adhere to the Thai ministerial regulations.

The Terms The Ministry Of Industry Can Decide On

Factory operations are placed into three categories:

  • Factories that merely need to notify the officials before the start of operations.
  • Factories that don't require factory licenses
  • Prior to operation, factories that need a license from the Ministry of Industry's Department of Industrial Works. Depending on the Ministry's discretion, the operator of the factory may be given a certificate allowing them to start factory construction on parts of the factory before a license is issued.

In the last category, the factory building operator is required to inform the officials at least fifteen days before a factory test-run commences. The operator must then notify the competent authority again at least fifteen days before actual manufacturing begins to adhere to ministerial regulations.

Thailand Factory License Operation

  • The factory size
  • The quality, source, type, and ratio of raw materials that can be used in factory operations
  • The number of specific types of factories, allowing them to reject the establishment of particular factories
  • The quality or type of products manufactured in a factory, with possible obligations to export certain products either wholly or partly
  • The energy form used in the factory

How long is a Factory License Valid For?

Licenses once granted are valid for five(5) years. In case of relocation of the factory or of the dissolution of the operation in the factory business, the license is regarded as having expired on the date of either relocation or dissolution of factory business.

Requirements For Obtaining A Factory License

  • A company affidavit
  • The appropriate application form
  • The plan displaying all the buildings that need to be built in the area of the factory
  • A comprehensive plan illustrating safety measures. The plan needs to contain a detailed written explanation of all measures relating to waste control, dangers, and pollution.
  • A list of all factory equipment certified by a professional engineer

Factory License Timeframe

Once the factory license application is submitted to the government offices, a government agent is required to visit the factory site, as well as all the factory equipment, structure, and pollution control measures.

Thereafter, the government agent will prepare and submit a report to the Provincial industrial office. The timeframe allocated to the submission of the report is thirty days after the factory license is received.

The person designated by the Ministry of Industry or a professional engineer will have fifty days to either grant or reject the license application. The applicant may still change the application or factory plan within this timeframe.

How Long Is A Factory License Valid For?

Licenses once granted are valid for five(5) years. In case of relocation of the factory or of the dissolution of the operation in the factory business, the license has an expiration date that aligns with the date of either relocation or dissolution of factory business.

Environmental Concerns

Currently, some districts in Ayutthaya and Pathum Thani Provinces have been assigned by the Cabinet to be reserved as sources of water by the Metropolitan Waterworks Authority. In order to control the establishment or expansion of factories in such areas, regulations have been imposed forbidding setting up or expanding factories which release wastewater containing heavy metals or poisonous substances used in agriculture or other chemicals such as PCBs, cyanide, arsenic, and phenol. The only exceptions are factories which release wastewater with a biochemical oxygen demand of less than one kilogram per day or those which are set up in Navanakorn Industrial Estates I and II.

Under Ministerial Regulation No. 3, factories that are specified by the Ministry of Industry as severely affecting the environment are required to provide environmental impact studies.


Factory licenses and industrial regulations in Thailand are complex processes. It is essential to analyze the business in depth as there may be various additional laws and regulations that can hinder the application process. Therefore, we always advise clients to consult with our experienced team of lawyers prior to attempting to apply for such a license contact the professionals for more information on Factory Licenses.