Factory License Annual Fee Exemption Announced
Due to the surge of the covid Pandemic, which continues to affect the industrial sector and the overall economic condition of the country and cause factory operators to experience business difficulty, the Ministerial Regulation was published in the Royal Gazette dated 13 August 2021, by waiving annual fees for all factories under Category 2 and Category 3 for the period from 10 June 2021 to 9 June 2022 which reduces the burden and alleviates the impact on factory operators.
To be explicit, manufacturers in Thailand are classified into three types:
Category 1: No license required, which includes factories that use machinery with 5-20 horsepower and/or employ 7-20 employees for manufacturing. The manufacturer, on the other hand, must adhere to the ministerial regulations.
Category 2: Notify the Department of Industrial Works before beginning manufacturing operation. The factories that use machinery with more than 20 horsepower but less than 50 horsepower and/or employ more than 20 but less than 50 employees for manufacturing: the manufacturer must notify the Department of Industrial Works before beginning operation and, of course, must comply with the ministerial regulations.
Category 3: Before factory activities can begin, a factory license must be obtained, a factory is described as factory that utilizes machinery with more than 50 horsepower, and/or employ more than 50 employees for manufacturing.
It should be noted that an issuance of the factory license is at the discretion of the Ministry of Industry.
Legal Insight Vol. August 2021 of Bangkok Global Law
The PDF file can be downloaded via the link as set below.