Frequently Asked Questions (FAQ) for Warehouse or Factory Rental / Sale in Thailand
Yes, it’s possible to temporarily lease the property under the name of an authorized individual. Subsequently, the landlord will furnish you with the required documents for setting up your company. Then, you can modify the lease agreement to reflect your new company’s name. Alternatively, if you prefer to establish a company before renting the warehouse or factory, you can enlist the assistance of a law firm to provide a temporary address, which can later be changed to the rented property address.
Leasing a warehouse or factory within an IEAT (Industrial Estate Authority of Thailand) zone typically offers certain advantages compared to a non-IEAT zone:
- Infrastructure and Facilities: IEAT zones often provide better infrastructure, including roads, utilities (such as water, electricity, and internet), and other amenities tailored for industrial activities. Non-IEAT zones may have varying levels of infrastructure development.
- Regulatory Environment: IEAT zones usually have streamlined regulatory processes and procedures for obtaining permits and licenses, making it easier and faster to set up and operate a business. Non-IEAT zones might have more complex bureaucratic procedures.
- Tax Incentives and Benefits: Businesses operating within IEAT zones may be eligible for tax incentives and benefits provided by the Thai government, such as tax exemptions or reductions. Non-IEAT zones may not offer the same level of tax incentives.
- Community and Networking: Being part of an IEAT zone can provide opportunities for networking and collaboration with other businesses within the industrial estate, fostering a supportive business community. Non-IEAT zones may lack this organized community environment.
- Accessibility to Services: IEAT zones often have access to additional services and support, such as security, maintenance, and business support services, which may not be as readily available in non-IEAT zones.
However, leasing in a non-IEAT zone might offer advantages such as greater flexibility in location choice, potentially lower costs (including land lease rates), and less stringent regulations, depending on the specific location and circumstances.
Ultimately, the choice between leasing in an IEAT or non-IEAT zone depends on factors such as your business requirements, preferences, location needs, and the incentives or benefits you seek. It’s essential to carefully evaluate these factors before making a decision.
Yes, it is generally allowable under the BOI application to lease or buy a warehouse or factory in a non-purple zone. Typically, the location or color zone of your factory isn’t a significant factor in determining the BOI incentives you’ll receive. BOI applications focus more on the type of industry encouraged by the government and its potential economic value to Thailand. However, it’s advisable to verify this with the specific regulations and requirements outlined by the BOI, as policies can evolve or have specific conditions that must be met. You can click here for more information about BOI.
Not always! While factories are usually in purple zones (industrial areas), you can sometimes get a factory license in other zones depending on factors like:
- Building Permit History – If the building was originally approved for industrial use, you may still qualify, even if the zoning has changed.
- Business Type – Some industries, like car repair or furniture manufacturing, may be allowed in orange zones (residential-commercial mixed areas).
- Local Regulations – Authorities review applications case by case, considering environmental impact, workforce size, and machine horsepower.
To check if your property qualifies, it’s best to consult local authorities or legal experts
In Thailand, most lease agreements from landlords are in Thai. Some may offer translations in English. Alternatively, you can hire a law firm for an official translation. Ultimately, in case of disputes, the Thai court will require a translation into Thai.
Yes, you can. The landlord will furnish you with all the required paperwork for the electricity upgrade. However, you will be responsible for sourcing an electrician company for the installation. Alternatively, the landlord may handle the installation, but the expenses will be borne by the tenant.
When your company pays rent to the landlord, a portion is withheld as tax by your company and submitted to the revenue department as mandated by the Thai government. This withholding tax is an expense for your company and income for the landlord. It’s legally the tenant’s responsibility to pay this tax on behalf of the landlord and provide a withholding tax certificate as proof. Sometimes, the listed rental price doesn’t include the withholding tax, so you need to factor it in to determine your actual expense. It’s wise to clarify this with the landlord before renting to avoid any disputes. The amount deductible for withholding tax is 5% for rent and 3% for services.
In Thailand, property tax, known as “land and building tax,” is applicable to various properties, including industrial ones. While many assume landlords should cover this tax, there’s no fixed rule in Thailand. Responsibility usually relies on the agreements reached between landlords and tenants. Some landlords include property tax in rental rates, while others prefer tenants to pay directly to the government, considering it’s not part of their income. Property tax is a yearly cost and can be listed as an expense for the tenant’s company. To learn how the government calculates property tax, click here
When you rent a warehouse or factory in Thailand, it’s important to get insurance. You should consider getting insurance that covers things like fire, flood, theft, and accidents. The landlord should have insurance to cover the building and property, but you should get your own insurance to protect your belongings and liability. It’s a good idea to talk to an insurance provider to find the right coverage for your needs.
When renting a warehouse or factory as a tenant, you should consider the following types of insurance:
- Commercial Property Insurance: This type of insurance covers the physical structure of the warehouse or factory, as well as the contents inside (equipment, inventory, machinery, etc.). It protects against risks like fire, theft, vandalism, and certain natural disasters. Make sure to understand whether the landlord’s insurance covers the building structure itself so you can tailor your coverage accordingly.
- General Liability Insurance: General liability insurance is essential to cover third-party bodily injury or property damage claims that occur on your rented premises. This can include incidents like a visitor slipping and falling on the warehouse floor or damage caused by your operations to someone else’s property.
- Business Interruption Insurance: This type of insurance provides coverage for lost income and certain operating expenses if your business operations are interrupted due to a covered event (such as fire or natural disaster). It helps to mitigate the financial impact of downtime and can assist in covering ongoing expenses while your business recovers.
- Workers’ Compensation Insurance: If you have employees working in the warehouse or factory, workers’ compensation insurance is typically mandatory. It provides coverage for medical expenses and lost wages for employees who are injured or become ill while on the job.
It’s important to assess your specific business operations and risks when selecting insurance coverage for a warehouse or factory. Working with an insurance agent or broker who specializes in commercial insurance can help ensure you have the right coverage tailored to your needs.
As a landlord of a warehouse or factory, it’s important to protect your investment and mitigate potential risks. Here are key types of insurance you should consider purchasing:
- Commercial Property Insurance: This insurance covers the physical structure of the warehouse or factory, including fixtures, equipment, and any improvements made to the property. It typically protects against risks such as fire, flood, theft, vandalism, and certain natural disasters. Make sure the policy covers the full replacement cost of the property.
- Landlord Liability Insurance: This type of insurance provides coverage if someone is injured or their property is damaged on your property and you are found legally responsible. It helps cover legal fees, medical expenses, and damages awarded in a lawsuit.
- Loss of Rental Income Insurance: Also known as rental income protection or business interruption insurance, this coverage provides compensation for lost rental income if your property becomes uninhabitable due to a covered peril (like fire or storm damage). It helps you maintain cash flow while repairs are being made.
Before purchasing insurance, carefully assess the specific risks associated with your warehouse or factory property and consult with an insurance agent or broker who specializes in commercial property insurance. They can help customize a policy that meets your needs and provides adequate protection for your investment.
They are the units of measurement typically used for industrial property and land in Thailand as shown below:
– Rai: A unit for land size where 1 Rai equals 1,600 square meters (sqm).
– Ngan: Another unit for land size with 1 Ngan equivalent to 400 sqm.
– Sq.wah: Used for smaller land areas, where 1 Sq.wah equals 4 sqm.
– Sqm: A unit for measuring usable area within buildings or sheltered/enclosed spaces.
Scenario:
A warehouse/factory spans 1,200 sqm on a land plot of 2-1-1 Rai.
Explanation:
2-1-1 Rai translates to 2 Rai, 1 Ngan, and 1 Sq.wah. Therefore, the total land area is calculated as (2 x 1,600 sqm) + (1 x 400 sqm) + (1 x 4 sqm) = 3,604 sqm.
The 1,200 sqm warehouse/factory includes all sheltered or enclosed spaces, including a second-floor office, meaning the actual production area is smaller due to the office space within the warehouse.
A Free Zone is an indicated area for industrial manufacturing, logistic and other business activities operations with no customs duty and VAT on purchases or importation of raw materials, components or finished goods.
In a General Zone, unlike a Free Zone, customs duty and VAT are imposed on those imported raw materials, components or finished goods.
To make your visit more efficient, we recommend seeing as many properties as possible in half a day or a full day to give you more options for comparison. This approach ensures that your trip is worthwhile since you’ll be traveling.
Additionally, it is usually insufficient to make a decision after visiting just one property. Having multiple options will help you make a more informed choice.
Not all property listings on our website are guaranteed to be available for rent or sale. The availability of each listing can change frequently as tenants move in and out.
To ensure we can find the best options for you, we recommend selecting a range of suitable listings based on pictures, price, location, and other details. We will then verify the real-time availability, check if the landlord accepts your industry, and determine if the property meets your needs.
Once we have this information, we will arrange appointments for you to visit the available and eligible properties.
The price shown on our website will be exactly the same as the landlord’s quotation, as we do not mark up the price.
Please be aware that the listed price may or may not include taxes, as different landlords have varying pricing policies.
Some property listings may not reflect the most recent pricing adjustments made by landlords, as prices can change over time. However, we strive to keep our pricing information as up-to-date as possible.
Therefore, we recommend verifying the pricing with us before making a decision to rent or buy.
No. We will only charge the landlord a commission fee when the deal closes because we offer marketing, advertising, representative support, and handle documentation for them. Rest assured, the price listed on our website matches the price quoted by the landlord. We maintain pricing transparency and do not mark up.
Engaging our agency is beneficial because we handle negotiations, resolve any issues, and manage disputes that may occur between landlords and tenants throughout the lease.
To protect property information and ensure proper client screening, our website only displays the Sub-district, District, and Province of each property.
If you’re looking for a property near a specific location, you can tell us the area and the distance range (in km), and we will filter suitable listings for you.
Once you register your profile with us, we will personally take you to visit the exact location, allowing you to make a well-informed decision.
The ideal location for your warehouse or factory depends on your business requirements. Consider the following factors to determine the best area for your needs:
1. Proximity to Customers or Suppliers
If your business needs to be close to customers or suppliers in a specific area, such as Ayutthaya, choosing a location nearby would be beneficial.
2. Access to Airports or Seaports
For businesses reliant on air freight, locations near Suvarnabhumi Airport, such as Samut Prakan or Chachoengsao, are recommended.
If your operations require proximity to a major seaport, consider Chonburi or Rayong for easy access to Laem Chabang Port.
3. Proximity to Bangkok
If being near Bangkok is important for business operations, executive hiring, or city conveniences, Samut Prakan, Pathum Thani, or Nonthaburi are strategic choices.
4. Distance from Your Head Office or Accommodation
Choosing a location close to your company’s head office or your residence can improve operational efficiency and convenience.
Before making a decision, researching Thailand’s geography and evaluating these factors will help you identify the most suitable location. This approach ensures a more focused property search, saving time and effort.
As part of our client screening process, we require a company profile to register your interest and present it to the landlord. This includes your business card, company website, company introduction, product photos, or images of your current factory or warehouse (if applicable). Providing this information helps the landlord understand who their potential tenant or buyer is.
If the landlord does not permit your business activity on their property, this process prevents unnecessary visits, saving time for both you and the landlord.
If you are establishing a new company or branch in Thailand, you can provide your company profile from your home country instead.
To schedule a property visit, please select your preferred listings from the website link provided by our salesperson. Once we confirm the availability of the selected properties and the number of locations that can be visited, we will proceed with scheduling an appointment.
We recommend booking your visit at least 2 to 3 days in advance, as appointment slots are subject to availability and demand.
Our property visit hours are:
Monday to Friday
Morning session: 9:30 AM – 12:00 PM
Afternoon session: 1:00 PM – 4:00 PM
Each session allows visits to approximately 5 to 8 locations, depending on travel distances between properties.
If you wish to visit properties in two provinces, you will need to schedule two separate days, one for each province.
Clients are kindly requested to arrange their own transportation for property visits. If needed, we are happy to recommend reliable car rental services. This gives you the flexibility to continue with other errands after the visit, such as meeting your lawyer, accountant, or going to the bank.
Please plan your trip by checking the distance and estimated travel time to the meeting point we provide. This helps avoid delays, especially if you’re not familiar with traffic in Thailand.
Our agents schedule appointments with landlords in advance and have limited time to show each property. If you arrive late, we may not be able to show you all the planned properties, as our agents also have other client appointments scheduled after yours.
In cases of significant delay, our agent reserves the right to cancel the appointment on the spot to avoid disruption to the next scheduled client visit. We appreciate your understanding and cooperation.
Once our sales agent shares a filtered link (e.g. 50 listings) based on your requirements, we kindly ask you to take a few minutes—around 10 minutes—to review the listings and shortlist several properties that interest you. You can base your selection on photos, location, size, and the brief details provided in each listing.
Shortlisting more options significantly increases the chances of finding available properties that meet your needs. For example, if you select 10 suitable listings and share the property IDs, links, or screenshots with our agent, we can then contact all 10 landlords at once to check availability. If 6 are available, we can arrange a half-day site visit for all 6, saving you time and allowing you to compare options efficiently.
On the other hand, if you select only 1 or 2 listings and they happen to be unavailable, you’ll need to return to the list and repeat the selection process—leading to delays and extra work for both you and our sales agent.
By selecting more properties upfront, we can streamline the process, reduce back-and-forth communication, and help you find the right property faster.
Many clients assume their factory must be located in a Purple Zone (industrial zone), but this is not always required. Here’s why:
1. Pricing considerations
Purple Zone properties—especially those within IEAT estates—tend to be more expensive because they are officially designated for industrial use.
There are also Purple Zone areas outside IEAT that are slightly cheaper.
Generally, properties in other color zones (such as Orange, Green, or Yellow) are more affordable.
2. Not all business activities require a Purple Zone
Under Thailand’s city planning regulations, Purple Zone areas are limited, leading to higher land and rental costs.
However, only certain types of businesses must operate within a Purple Zone.
For example, a Purple Zone may allow 100 types of industrial activities, while an Orange Zone may allow 50, a Green Zone 40, and a Yellow Zone 30 (illustrative numbers).
If your business type is permitted in a lower-cost zone, there’s no need to pay a premium for a Purple Zone property.
3. High demand and occupancy
Due to limited availability and high demand, Purple Zone properties generally have higher occupancy rates, which further increases their price.
4. Zoning and licensing mismatches
Some properties located in Purple Zones are registered as warehouses or other non-factory uses in their building permits. In such cases, you may not be able to obtain a factory license even though the land itself is Purple Zoned.
5. When you should choose a Purple Zone
A Purple Zone is recommended mainly for businesses dealing with hazardous materials, heavy manufacturing, or operations that generate significant pollution.
For most general or light industrial activities, it’s usually not required—so you can save considerable costs by considering other zones.
6. How we help minimize your risk
To ensure compliance and minimize your risk, our team can help check with the landlord and relevant authorities whether your business activity can obtain a factory license in the property you are interested in.
Once confirmation is received, you can proceed confidently with the rental decision—so there’s no need to worry too much about zoning colors, which can often be confusing.
To perform this check, we will need the following information from you:
1. Your production process chart
2. A list of machines to be installed in the property, including the horsepower of each
3. The raw materials used in production
4. Details on any pollution involved (e.g., wastewater, noise, dust, smell)
To verify whether your business activity can obtain a factory license or operate legally in the property you’re interested in, please provide the following documents:
1. Production process chart – showing the steps involved in your manufacturing or operational process.
2. List of machines – including all equipment to be installed and the horsepower (HP) of each.
3. Raw materials list – detailing the materials used in your production.
4. Pollution details – specifying any possible pollution such as wastewater, noise, dust, or odor.
Properties with a small warehouse or factory building but a very large outdoor land area do exist in Thailand, but they are very rare and uncommon.
In most cases, developers fully utilize their land when developing warehouse or factory projects. Typically, 60–70% of the land is built-up warehouse or factory space, while the remaining area is allocated for setbacks, access roads, and legal open space requirements under Thai construction regulations. This is because rental charges are based on the sheltered (built-up) area, not open land. As a result, developers maximize the covered area to ensure commercial viability.
Properties with a large open land area usually belong to owners who rented or purchased land and built a small warehouse or factory for their own operational needs, where outdoor space is more important than covered space. These listings are uncommon in the market.
Realistically, the availability ratio is approximately 1 in 50 properties.
If having a large outdoor land area is a strict requirement, we generally recommend renting or purchasing land and constructing a warehouse or factory tailored to your needs, as this provides greater flexibility and cost efficiency.
Under Thai law, foreign individuals are generally not permitted to own land in Thailand, including land with warehouses or factories. However, a Thai-registered company may legally own land if it is properly structured in compliance with Thai law, typically requiring Thai nationals to hold the majority of shares and voting rights.
In certain cases, foreigners may hold long-term lease rights or own buildings or structures on the land (excluding the land itself), provided that all arrangements comply with applicable Thai laws.
If the landlord is a foreigner or a company with foreign involvement, it is important to conduct proper due diligence before proceeding with any transaction.
Key due diligence steps include:
Verifying the land title deed and the registered legal owner
Reviewing company registration documents, shareholder structure, and business objectives (if the owner is a company)
Confirming that the registered business activities legally support ownership or use of the property
Ensuring the lease or ownership arrangement complies with Thai land and corporate laws
Engaging a qualified Thai law firm to review and verify all relevant documents
⚠️ Important Note on Nominee and Shell Companies
The use of Thai nominee shareholders or shell companies to circumvent foreign land ownership restrictions is illegal under Thai law. Enforcement in this area has increased, and improperly structured companies may face legal challenges or invalid ownership claims.
In general, renting or purchasing property is considered safe only when the ownership or lease structure is lawful, documentation is transparent, and the transaction has been reviewed and verified by an independent legal professional.
⚖️ Legal Disclaimer
This content is provided for general informational purposes only and does not constitute legal advice. Readers should consult a qualified Thai legal professional before entering into any property transaction.
Yes. In most cases, tenants are allowed to make modifications or install additional items in a rented warehouse or factory at their own expense and subject to the landlord’s prior approval. Such approval is primarily required to ensure safety and structural integrity of the building.
Depending on the type and scale of the modification, some landlords or developers may offer to carry out the installation and charge the cost accordingly. Alternatively, tenants may appoint their own contractors, provided the landlord agrees.
In Thailand, warehouse and factory developers typically deliver standard buildings, which usually include:
Basic office space
Toilets
Basic electrical supply
Tenants are generally allowed to customize the premises to suit their business operations. Common modifications and installations include:
Increasing electrical capacity (e.g. adding transformers)
Constructing internal walls for additional rooms or office areas
Building clean rooms or cold rooms
Installing overhead cranes
Adding mezzanine floors
Installing air-conditioning systems in office areas
Some warehouse or factory listings on our website may already include one or more of the above installations. These cases are not common and usually involve installations left behind by previous tenants or provided by the landlord. While this can be advantageous, existing installations may not fully match your operational requirements in terms of size, specifications, capacity, or layout.
Reinstatement Upon Lease Expiry
In most cases, landlords require tenants to reinstate the property to its original condition upon lease expiry or handover, as future tenants may not require the same modifications.
However, in certain situations, landlords and tenants may mutually agree to retain specific installations. Any such agreement should be clearly negotiated and expressly stated in the lease agreement to avoid future misunderstandings or disputes.
We recommend starting your search about 1 to 3 months before your intended move-in date.
If you start too early (for example, 5–6 months in advance), availability can be an issue. Even if you find a property you like, it may no longer be available when you are ready to move in. In most cases, landlords are also unwilling to reserve a property for several months without occupancy, as this would prevent them from renting it to another tenant and result in lost opportunities.
By beginning your search within the 1–3 month window, you can view properties with more accurate and up-to-date availability, make decisions with confidence, and secure a unit within a realistic timeline that aligns with landlord expectations.
Photos on websites are for reference only and may differ slightly from the actual property. From our experience, images can sometimes look attractive online, but the real site may feel different once you see the surroundings. In other cases, a property may not look impressive in photos but turns out to be a good fit when visited in person.
Visiting the actual site allows you to better evaluate key factors such as the surrounding environment, road access, and the true location. You can also take your own photos and videos for more accurate reference, helping you make a more confident and informed decision.
In Thailand, the grace period or rent-free (fit-out) period varies by landlord and is subject to negotiation. Some landlords do not offer any rent-free period, while others may provide 7 days, 14 days, or up to 1 month, which is the most common arrangement for a standard 3-year lease.
For longer-term leases, the rent-free period may be more generous. Based on our experience, we have seen up to 2 months of rent-free period granted for a 10-year contract.
The final arrangement depends on negotiations between the landlord and tenant and may also be influenced by other commercial terms in the rental package, such as whether the rent includes or excludes land and building tax, withholding tax, VAT, stamp duty, and any installation or modification works required by the landlord.
Yes. Lease agreements longer than 3 years are allowed under Thai law, but they must be registered at the Land Department to be legally enforceable beyond three years.
For registration, the following government fees generally apply:
Lease Registration Fee: 1% of the total lease value over the entire lease period
Stamp Duty: 0.1% of the total lease value
These fees are usually paid by the tenant, but this is negotiable between the landlord and tenant.
Due to the additional cost and registration process, many tenants in Thailand prefer to sign a 3-year lease with renewal options, instead of registering a long-term lease upfront.
> Disclaimer:
Fees, regulations, and procedures may change and may vary depending on location and interpretation by the Land Department. This information is provided for general guidance only and does not constitute legal advice. We recommend verifying the latest requirements with the Land Department or a qualified legal professional before signing any lease agreement.
On the contract signing day, tenants are required to make full payment of the security deposit and rental advance (for example, 3 months’ deposit plus 1 month’s rental advance).
The contract becomes effective only when both the full payment is made and the contract is signed on the same day.
If the payment is remitted from overseas and requires a few working days to reach the landlord’s bank account, you must provide the bank transfer slip as proof of payment on the contract signing day.
Please note that:
Signing the contract without full payment received is not considered effective.
Making full payment without signing the contract is also not considered effective.
In cases where full payment is delayed due to unforeseen circumstances, acceptance is subject to the landlord’s discretion.
In Thailand, the most common practice for industrial warehouse or factory rentals is a 3-year lease. Some landlords may allow 1- or 2-year contracts, but this is less common and usually subject to negotiation.
We generally recommend a 3-year lease for the following reasons:
1. Rental price stability
With a 1-year contract, the landlord has the right to revise the rental price upon renewal. A 3-year lease allows you to lock in the rental rate for the full term.
2. Early termination considerations
If you sign a 3-year lease but need to terminate early, the most common outcome is forfeiture of the security deposit. While landlords technically have the right to claim remaining rent or take legal action, this is uncommon in practice.
In some cases, landlords may allow early termination with advance notice (e.g. 90 days) without forfeiting the deposit, but this is rare and must be clearly agreed in advance.
Please note that security deposits are refundable only if the property is returned in its original condition, without damage or loss.
All agreed terms and conditions will be clearly documented in the lease agreement to protect the interests of both landlord and tenant.
In Thailand, factory tenants are responsible for ensuring their operations do not cause pollution that affects the landlord, neighboring tenants, or violates environmental laws. Below are common practices for managing each type of pollution.
1. Waste Water
Tenants must ensure wastewater does not pollute public drains or surrounding areas.
Common solutions include:
Installing an on-site wastewater treatment system (grease trap, sedimentation tank, biological or chemical treatment), or
Appointing a licensed third-party waste management company (e.g. GENCO or similar) to collect and properly treat wastewater off-site
Landlords typically require that:
No untreated wastewater is discharged
All costs, compliance, and liabilities are borne by the tenant
2. Noise
Factory noise must not disturb nearby tenants.
Typical measures:
Soundproofing walls or machines
Installing vibration dampers under equipment
Limiting noisy operations to daytime hours
Landlords mainly expect no noise complaints from surrounding units.
3. Dust
Dust must be controlled and prevented from spreading outside the factory.
Common measures:
Installing dust collectors or filtration systems
Using local exhaust ventilation
Maintaining regular cleaning and covered material storage
Visible dust affecting other tenants is generally not acceptable.
4. Smell / Odor
Odor is one of the most sensitive issues in industrial properties.
Typical controls include:
Activated carbon filters, scrubbers, or biofilters
Proper ventilation and negative pressure systems
Sealed production and waste storage areas
Landlords usually require no detectable odor outside the premises.
Important Note
Lease agreements in Thailand typically state that:
Tenants must comply with all environmental laws
Tenants are fully responsible for pollution-related complaints, fines, or damages
Repeated pollution issues may lead to lease termination
You should apply through the Department of Industrial Works (DIW) under the Ministry of Industry, or the Provincial Industrial Office where your factory is located. These are the proper and official government channels for factory license applications. Alternatively, you may choose to engage a licensed consultant or professional firm to assist with document preparation, coordination, and submission on your behalf.
All locations in Thailand can be used for a BOI application. However, some locations are easier and faster to obtain BOI approval. Factories or warehouses located within industrial estates (such as IEAT) are generally easier to approve, as zoning, infrastructure, and environmental requirements are already in place. Locations outside industrial estates are still acceptable, but may require additional review and documentation, which can affect approval time and incentives.
Not all businesses need to be in a Free Zone. A Free Zone is generally suitable for companies that import raw materials and export most or all finished goods, as it offers import duty and VAT exemptions.
If your business mainly sells products in Thailand, sources materials locally, or operates as a warehouse, logistics center, or light assembly facility, a General Zone property is usually sufficient and more cost-effective.
Free Zone properties typically have higher rental costs, fewer location choices, and stricter customs controls. In most cases, businesses should only choose a Free Zone if the tax and duty savings clearly outweigh the higher rental and compliance costs.
In most cases, landlords do not release property or company documents before receiving a booking fee, partial payment, or full payment. This is to ensure the client’s genuine interest, as many landlord documents contain confidential information. Based on past experience, some landlords have encountered situations where documents were misused without proper commitment, including unauthorized or improper purposes.
That said, in certain situations, landlords may agree to provide limited documents prior to payment—such as proof of property ownership or documents required for basic due diligence. In these cases, clients are usually required to first sign a Letter of Intent (LOI) or Memorandum of Understanding (MOU) to formally express their interest. Once this is in place, the landlord may release the necessary documents without requiring upfront payment.
In most cases, yes—but this is subject to the landlord’s policy. Some landlords allow a property to be reserved with a partial payment (such as one month’s rent).
After the booking payment is received, the tenant is typically required to sign the lease agreement and complete the full payment (for example, three months’ security deposit plus one month’s advance rent) within a specified timeframe, usually between 7 to 30 days, depending on the landlord.
If the full payment is not completed within the agreed period, the booking payment is usually forfeited. This is because the landlord holds the property during the reservation period and gives up the opportunity to rent it to other tenants who may be ready to move in immediately.
In most cases, the booking payment is also non-refundable if the tenant cancels.
Please ensure you carefully review the terms and conditions stated in the booking agreement before signing.
Once you confirm your interest, the rental process generally follows these steps:
1. Agreement on Terms
The landlord and tenant will first agree on the rental price, lease terms, and conditions after any necessary negotiations.
2. Submission of Tenant Documents
The tenant will be required to provide the following documents for the landlord to prepare the lease agreement:
- Company affidavit with company stamp and original signature (if available)
- Company tax registration certificate (Por Por 20) with company stamp and original signature (if available
- Thai ID card or passport of the authorized signatory, with original signature
3. Lease Review & Due Diligence
The tenant will review the draft lease agreement and, if required, conduct basic due diligence on the landlord’s documents. This step is usually completed online before proceeding to contract signing and payment.
4. Contract Signing & Payment
An appointment will be arranged to sign the lease agreement and make full payment, either at the landlord’s office or at the property.
- The authorized signatory is usually required to be present.
- If the signatory cannot attend, signing may be done via Power of Attorney or online, depending on the landlord’s preference.
- In cases of online signing, original signed documents must be couriered to the landlord within 15 days from the contract date for stamp duty purposes.
Please note that procedures may vary slightly depending on the landlord. Some landlords prefer in-person meetings, while others are comfortable completing the process online.
Environmental Impact Assessment (EIA) is an environmental approval required for certain types of factories or business activities that may impact the environment. EIA in Thailand is regulated by the Office of Natural Resources and Environmental Policy and Planning (ONEP).
Not all warehouses or factories require EIA. Whether EIA is required depends mainly on the type of business activity, production process, and scale of operation, not just the building itself.
✅ You should check EIA requirements before renting or buying a property if your business involves:
Heavy manufacturing or industrial production
Chemical, petrochemical, or metal processing
Waste treatment, recycling, or hazardous materials
Power generation or environmentally sensitive activities
Large-scale factories regulated under environmental law
❌ EIA is usually not required for:
General warehousing and logistics
Storage and distribution only
Light assembly or packaging without pollution
Office or showroom use
If your business falls under a regulated industrial category, EIA approval may be required before applying for a factory license (Ror Ngor 4) or starting operations.
📌 Important:
EIA requirements are based on your business activity, not just the property. Always verify EIA requirements early to avoid approval delays or relocation risks.
🔗 Official EIA references (Thailand – ONEP):
EIA Thailand Portal: https://eiathailand.onep.go.th/
Smart EIA Plus System: https://eia.onep.go.th/
The Thai Food and Drug Administration (FDA) is the government authority responsible for regulating food, beverages, health products, dietary supplements, cosmetics, medical devices, and pharmaceutical products in Thailand to ensure safety and quality standards.
Not all factories or warehouses require FDA approval. FDA requirements apply based on the type of products and activities, not the property itself.
✅ You should check FDA requirements before renting or buying a factory or warehouse if your business involves:
Food or beverage manufacturing, processing, packing, or storage
Dietary supplements or health products
Cosmetics or personal care products
Medical devices or pharmaceutical products
Repacking, labeling, or relabeling of FDA-controlled products
📝 FDA approval may include:
Product registration
Factory or facility registration
GMP or hygiene inspections
Labeling and storage compliance
In many cases, the property must be modified to meet FDA standards, such as:
Installing clean rooms
Installing cold rooms or temperature-controlled storage
Upgrading ventilation, drainage, or hygiene systems
Most factories or warehouses are rented as empty buildings. Any modifications required for FDA approval are usually the tenant’s responsibility, carried out at the tenant’s own cost, and treated as investment costs for the business.
❌ FDA approval is usually not required for:
General warehousing with no FDA-controlled products
Logistics or distribution without repacking or processing
Office or showroom use only
📌 Important:
FDA requirements depend on your product and operational process, not just the building. Always verify FDA requirements early, as facility upgrades may be required before approval and before operations can begin.
🔗 Official Thai FDA website:
https://www.fda.moph.go.th
Whether your business requires a factory license (Factory License – Ror Ngor 4) depends on the nature and scale of your operations.
✅ In general, a factory license is required if any of the following apply:
Your business involves manufacturing, processing, assembling, or transforming products
You use machinery with a total power of 50 horsepower (HP) or more
You employ 50 or more workers
Your operations may have environmental impact (e.g. noise, pollution, waste, chemicals)
❌ A factory license is usually not required if:
Your premises are used only for storage or warehousing
There is no production or processing activity
Machinery usage and manpower are below the legal thresholds
If your business falls into a grey area (for example, light assembly, repacking, or partial processing), authorities will assess the actual on-site activities, not just the business description.
👉 To be safe, it is recommended to consult the Department of Industrial Works (DIW) directly or engage a licensed consultant to confirm whether a factory license is required before starting operations.