Factory License Services

Under Thailand's Factory Act, as amended in 2019, production premises above the prescribed thresholds must, depending on their category, either file a notification or obtain a factory license (Ror Ngor 4) before they can lawfully operate. Starting production without the required license or notification may lead to a suspension order and fines, and can affect Board of Investment (BOI) privileges, import and export eligibility, and bank financing.

The application spans land, buildings, equipment, production processes and environmental matters, and requires an on-site inspection by the industrial authorities. Z&X's team of bilingual Chinese–Thai advisors and specialists experienced in industrial approvals provides end-to-end support, from eligibility pre-assessment and planning to document preparation, government liaison, inspection and license issuance.

· Who it's for: Chinese manufacturers building or expanding production facilities in Thailand that require a factory notification or factory license, including owner-built and leased premises both inside and outside industrial estates.

The amended Factory Act substantially changed the thresholds and licensing regime. Many projects that needed a license under the previous law now require only a notification, or nothing at all. The current framework is summarized below; the prevailing rules of the Department of Industrial Works (DIW) under the Ministry of Industry and the determination of the competent authority take precedence.

· Definition of a factory: Premises using machinery with a total capacity of 50 horsepower or more, or employing 50 or more workers.

· Category 1 factories: Small-scale operations with minor environmental and safety impact. No license or notification is required, but safety, land-use and environmental rules still apply.

· Category 2 factories: Medium-scale operations with moderate risk. A notification must be filed with the competent authority before operations begin; no factory license is required.

· Category 3 factories: Larger operations, or those involving hazardous materials or significant environmental impact. A factory license must be obtained before production begins.

· Approval level: Projects with total machinery capacity below 500 horsepower generally apply to the Provincial Industry Office where the factory is located; projects above 500 horsepower apply to the central approval authority of the Ministry of Industry.

· License validity: Following the amendment, factory licenses no longer have a fixed term and do not require periodic renewal. Separate procedures apply if operations cease or the factory is transferred.

· Prerequisites: A site survey must be completed first, together with core documents such as land title, building permits and an equipment list.

· Pre-assessment and categorization: We determine the factory category (license, notification or exempt), clarify the approval level, key requirements and potential risks, and provide an application plan.

· Factory license application: We guide and assist you in preparing the full application package, draft the application report and submit it to the industrial authorities, manage communication and progress throughout, and collect the license on your behalf once approved.

· Inspection support: A professional advisor attends every official inspection to coordinate and respond, resolving issues on the spot.

· Category 2 notification: For projects that require a notification rather than a license, we help prepare and file the notification.

· Engineer review and certification: We coordinate licensed Thai mechanical, construction and electrical engineers to review the relevant documents and provide statutory signatures, producing technical documents recognized by the authorities.

· Ongoing support: Preparation for periodic factory inspections, as well as license amendments and expansion applications for additional equipment, increased capacity or changes in business scope.

· Step 1 Pre-assessment and planning: Category determination and application plan completed within one week of engagement.

· Step 2 Document preparation and submission: We collect and review the full application package, draft the application report and formally submit it to the industrial authorities.

· Step 3 First inspection: Around day 45, verifying site conditions and consistency with the documents, with an advisor present throughout.

· Step 4 Second inspection: Around days 60–75, checking the installation of production equipment and its rated capacity, with an advisor present throughout.

· Step 5 Approval and issuance: Around 15 working days after a successful inspection, the industrial authorities issue the factory license, which Z&X collects on your behalf.

Estimated timelines run from the date a complete application is submitted: approximately 105 working days in Rayong and 120 working days in Chonburi, with other locations assessed case by case. Actual progress depends on the local Provincial Industry Office's processing and inspection schedule.

Z&X will guide you through preparing each of the following documents and review them for compliance before submission.

· Company and site: Company registration certificate and articles of association, land title documents, factory lease agreement (if applicable), and identification documents of the property owner.

· Building and use: Building permit and building use permit.

· Production and equipment: Product list and descriptions, production process flow, equipment list (including models and power ratings), and list of key raw materials.

· Other: Environmental impact assessment or environmental management documents (depending on project scale and industry), and any additional documents required by the industrial authorities.

Factory categorization and license issuance are subject to the review and approval of the competent authority. If your project also involves a BOI application, company incorporation, import and export licensing or an environmental assessment, these can be planned together with other Z&X business units.

· Is our project better suited for a trading‑based model, leased‑factory manufacturing, leased‑factory operation with BOI privileges, or self‑constructed factory with BOI privileges?

· Will the factory location affect the BOI category and privileges?

· What are the most‑commonly‑overlooked fiscal‑tax, customs and BOI milestones for Chinese enterprises prior to the commissioning of investment projects in Thailand?

· If production is scheduled to commence next year, how should we reverse‑engineer the timeline for the feasibility study and project implementation?

Want advice tailored to your company? Book a factory license consultation →