4.          Factory Expansion

No factory expansion is allowed unless permission is obtained. There is a fee of 100,000 baht to apply to expand a factory. As defined in the Act, the following undertakings constitute factory expansion:

·        An increase in the number of machines, or change or modification of machines to increase its aggregate power by 50% or more in case where the original machines have their aggregate powers of not more than 100 horsepower or an equivalent thereof of not more than 100 horsepower or to increase from 50 horsepower or more in case the original machines have their aggregate powers of more than 100 horsepower or an equivalent thereof of more than 100 horsepower.

·        The addition to, or alteration of, any part of the factory building which causes any part of the foundation of the factory to bear a load of an additional 500 kilograms or more.

In the case that a licensee:

·       Increases the quantity of machines, changes or modifies the machines used for production or generation of power, but by less than 50% of increased aggregate power, or

·       Increases the area of the factory building or constructs the new factory building for the direct benefits of the business of such factory rendering the area of the factory building to be increased from 50% or more in case where the area of the factory building does not exceed 200 square meters or to be increase from 100 square meters or more in case where the area of the factory exceeds 200 square meters,

The notification in writing must be filed with the competent authority within seven days of the date of the change.

A license as to the expanded part shall be valid for the same period as that of the license.

Source: A Business Guide to Thailand

Updated: November 2015