When starting an industrial plant or expanding production, the biggest challenge for business owners, managers, and entrepreneurs is not just about building design or managing the construction budget, but about "getting things legal," especially applying for a factory operating license, also known as a "Factory Permit." This is the most crucial hurdle in guaranteeing that your plant can operate safely without legal issues or subsequent project suspensions.

By 2026, environmental regulations, rules, and government review procedures will be modernized and stricter to meet sustainability standards. This article from Bliss Construction will take you through every step of the engineering documentation preparation process and essential knowledge needed to apply for a factory permit to ensure your factory construction project goes smoothly and commences operations on schedule.

What is a Factory License, and what types of factories need to apply for one?

A Factory License is a factory operating license issued by the Department of Industrial Works, Ministry of Industry (or the Provincial Industrial Office) under the Factory Act. Its purpose is to ensure that establishments meet safety standards, have pollution control systems, and do not create negative impacts on the surrounding community and environment.

According to the latest Factory Act, factories are classified into three categories based on the horsepower of their machinery and the number of workers, as follows:

• Type 1 Factories: Factories with a total machinery power not exceeding 50 horsepower and employing no more than 50 workers (can commence operations immediately without requiring a license, but must comply with ministerial regulations).
• Type 2 Factories: Factories with a total of more than 50 horsepower but not exceeding 75 horsepower, or with more than 50 but not exceeding 75 workers (no need to apply for a Factory License, but must “notify” the authorities before commencing operations).
• Type 3 Factories: Factories with a total of more than 75 horsepower, or with more than 75 workers, or factories that produce pollution (restricted to applying for and receiving a Factory Permit before construction and operation can begin).

Updated procedures for applying for a factory license in 2026.

The current process for applying for a Factory License emphasizes speed and transparency through a digital system (E-License), while maintaining rigorous verification of engineering plans. There are five main steps you need to prepare for:

Step 1: Checking the zoning and factory location requirements.

Before beginning building design, it is necessary to verify whether the land is located in a purple zone (industrial land) or a zone that permits the construction of such factories. It is also essential to check the setback distances from important landmarks such as schools, temples, hospitals, or public water sources, as required by law.

Step 2: Preparing engineering drawings and supporting documentation.

Prepare building plans for the factory, including machinery layout plans, electrical systems, wastewater treatment systems, and fire protection systems. These plans must be certified by licensed architects and civil/mechanical/environmental engineers.

Step 3: Submitting the License Application.

Submit the documents and plans to the Provincial Industrial Office in your area, or through the Department of Industrial Works' electronic service system, for officials to verify the completeness of the documents.

Step 4: Site inspection and public hearing.

Officials will conduct on-site inspections to certify the building location, and in cases where the factory falls into a category that may have an environmental impact, officials will arrange for a public hearing to gather opinions from residents in the surrounding areas.

Step 5: Approval and Issuance of Factory License.

Once the inspection results meet the criteria, the committee will issue a factory license (Form 4) to the operator. Only after receiving the license can full-scale construction and machinery installation begin.

List of engineering documents and plans that must be prepared.

Most delays in obtaining a factory license are due to incomplete documentation or plans that do not meet engineering standards. The important documents that need to be prepared are as follows:

• Application form for a factory operating license.
• Copies of the company registration certificate, authorized directors, and copies of their national ID cards.
• Land title documents or letters of consent to use the land/lease agreement.
• Site plan showing the factory area and surrounding buildings.
• Factory building plans, including structural calculations, certified by a civil engineer.
• Machine layout plan with total horsepower details.
• MEP (Mechanical, Electrical, and Electrical) system plans include industrial electrical systems, fire suppression systems, and sanitary systems.
• Pollution control plans and systems (wastewater treatment, air treatment, industrial waste) certified by environmental engineers.
• Risk assessment and safety measures report for the factory.

Case Study: 3 Mistakes That Delay the Application for a Factory License.

Based on its experience in construction and factory design, Bliss Construction has identified common mistakes that contractors frequently encounter:

1. Designing a building without checking zoning regulations: Land was purchased and the factory design completed, only to later discover that the land was in a green zone, prohibiting the construction of that type of factory. This resulted in wasted money and time.
2. Building setback distances do not meet standards: The factory wall design is too close to the property boundary, which is not in accordance with the Building Control Act and resulted in a failure to pass the site inspection.
3. Wastewater and pollution treatment systems do not match the production scale: The calculated volume of wastewater or pollution is lower than the actual amount, leading to government environmental engineers not approving the design.

Conclusion

Obtaining a factory license in 2026 isn't difficult if entrepreneurs plan systematically in advance and choose to work with experts in industrial plant construction. Preparing accurate and legally compliant engineering plans from the first step will save time, reduce complications, and help your business commence operations and generate revenue on schedule.

Bliss Construction We are a turnkey construction company specializing in factory, warehouse, and engineering system construction. We have a team of professional architects and engineers specializing in construction, MEP (Mechanical, Electrical, and Electrical) systems, and coordinating the preparation of engineering plans for obtaining factory permits (Form 4) and building permits. This ensures peace of mind for business owners regarding legal matters. We are honest, reliable, and committed to completing every project.

Trust Bliss Construction to handle everything from structural design to preparing the necessary permits (Form 4) to get your business up and running as quickly as possible. Contact us today for a free consultation!

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