IEAT (Industrial Estate Authority of Thailand) in Thailand

What are the types of Industrial Estates Developed by IEAT in Thailand ?

IEAT in Thailand manages numerous industrial estates across the country. These estates feature advanced infrastructure, including reliable utilities, transportation networks, and waste management systems. There are two types of industrial estates, divided into  zones, each offering unique benefits tailored to different business needs, promoting sustainable and efficient industrial operations.

• Green Zone in IEAT in Thailand: The Green Zone focuses on environmentally sustainable practices. This area promotes industries that adopt green technologies, aiming to minimize environmental impacts and support Thailand’s commitment to sustainable development. Companies in the Green Zone are encouraged to implement eco-friendly practices, contributing to a greener economy.

• Free Trade Zone in IEAT in Thailand: The Free Trade Zone (FTZ) offers significant incentives for businesses engaged in international trade. Companies operating in the FTZ enjoy benefits such as duty-free import of raw materials and machinery, streamlined customs procedures, and various tax incentives. This zone is particularly attractive to foreign investors looking to establish manufacturing and distribution hubs for regional and global markets.

What are the IEAT Benefits for Foreign Businesses and investment ?

The Industrial Estate Authority of Thailand (IEAT) issues various notifications that provide specific benefits to businesses operating within industrial estates. Here are some key notifications and their associated benefits:

1. Land Ownership for Foreign Investors: Foreign businesses can own land within IEAT zones, which is typically restricted outside these areas.

2. 100% Foreign Ownership: Companies within IEAT zones can be fully owned by foreign investors, promoting ease of business operations and investment.

3. Import Duty Exemptions:

• Machinery: Exemption on import duties for machinery used in production.
• Raw Materials: Exemption on import duties for raw materials used in manufacturing for export.

4. Export Duty Exemptions:

•  Excise Tax: Exemption on excise tax for exported goods.
• Value Added Tax (VAT): Exemption on VAT for goods produced for export.

5. VAT Exemptions: Machinery and Raw Materials: Exemption on VAT for imported machinery and raw materials used in production.

6. Duty Refunds: Refunds on duties for eligible materials used in the manufacturing process for export.

7. Work Permit and Visa Facilitation: Easier processes for obtaining work permits and visas for foreign employees and executives.

8. Permission for Foreign Experts and Technicians:

•  Stay Permission: Foreign technicians, experts, and their dependents can stay in Thailand.
• Work Authorization: Foreign experts can work in IEAT zones under specific industrial activities.

9. Currency Remittance: Permission to take or remit foreign currency abroad, facilitating international financial transactions.

10. Infrastructure and Utilities: Access to high-quality infrastructure, including roads, utilities, and waste treatment facilities.

11. One-Stop Service Center: Assistance with administrative procedures like company registration, environmental impact assessments, and licensing.

These notifications and benefits are designed to attract foreign investment, support industrial development, and create a favorable business environment within Thailand’s industrial estates.

What are the Required Documents for IEAT Thailand License Business Operations ?

Here is a detailed list of necessary documents for applying for the land use permit for business operations under IEAT Thailand.

• Identification Card (ID Card): Copies of the identification cards of the company’s directors and authorized signatories.
• List of Shareholders (Bor Or Chor 5): Official document listing all the shareholders of the company.
• Form IEAT 01/03: General application in case of transfer of the right for land utilization.
• Form IEAT 01/1: Application for land utilization for business operations in the industrial estate.
• Business Plan: A detailed description of the business activities, including the type of products to be manufactured, production processes, and projected business operations.
• Machinery Details: Information about the machinery to be used, including specifications, power ratings (horsepower), and intended use.
• Workforce Details: Number of employees, their roles, and safety measures in place for their well-being.
• Proof of Land Ownership or Lease Agreement: Legal documents verifying the company’s right to use the land. This could include a lease agreement or land title deed.
• Building and Factory Layout Plans: Detailed architectural plans showing the layout of the buildings and factory setup.
• Environmental Impact Assessment (EIA): If applicable, depending on the type and scale of the factory. This report assesses the potential environmental impact of the factory operations.
• Safety Compliance Reports: Documentation showing compliance with safety standards and regulations, including fire safety and occupational health measures.
• Copies of Business Registration: Official business documents, including the company’s registration certificate and relevant operating licenses.
• Approval from Previous Landowner (if applicable): If the land was previously owned by an entity, documentation proving the transfer of land rights to the new owner.

What is the Process for Business Operations IEAT in Thailand ?

Below is a step-by-step application process to obtain a license to operate within the IEAT in Thailand.

Determine the Factory Type: Identify the category of your factory based on the Factory Act. Factories are categorized into three types:

• Type 1: Can operate immediately without prior notification.
• Type 2: Requires notification to the Authorization Department before operation.
• Type 3: Requires a license before starting operations.

Prepare Necessary Documents: Please refer back to the section above for the required documents

Initial Consultation: Engage with IEAT officials** to discuss preliminary requirements and clarify any doubts regarding the application process.

Online Submission: Submit all required documents through the IEAT’s online portal and  ensure all forms are correctly filled and documents are complete.

Review and Inspection: IEAT officials will review the submitted documents and may conduct inspections of the proposed factory site and facilities. Respond to any queries or requests for additional information from the IEAT promptly.

Approval and Licensing: Once the review and inspections are completed, the IEAT will process the application. Obtain the necessary licenses and permits from the IEAT, including approvals for land use and factory operations.

Payment of Fees: Pay the required fees for the approval, licenses, and any other administrative charges as stipulated by the IEAT and Ministerial Regulations.

Additional Notes :

• Time: The processing time and period of consideration is no longer than 30 days following the date of the submitted application. 
• Environmental and Safety Compliance: Ensure all environmental and safety measures are in place and comply with IEAT standards.
• Regular Updates: Stay updated with any changes in regulations or additional requirements by regularly checking the IEAT website and maintaining communication with IEAT officials.

At Benoit and Partners, we help foreign investors navigate the process of owning land and setting up operations in Thailand’s IEAT zones. From license applications to ongoing compliance, our experienced team ensures you meet all legal requirements. Contact us today to maximize the benefits offered by the IEAT in Thailand.