Does a long factory lease have to be registered?

A lease of immovable property for more than three years must be made in writing and registered with the competent official to be enforceable for its full term. An unregistered lease is enforceable only for three years. Registration also matters if the landlord later sells the property, because a registered lease binds the buyer.

How long can a factory lease be?

An ordinary lease of immovable property is limited to thirty years, renewable by agreement. Separate legislation allows longer commercial and industrial leases, of more than thirty and up to fifty years, for property in qualifying areas such as industrial estates or zones designated for industry, subject to registration and other conditions.

Can we use the previous tenant's factory licence?

Generally not. A factory licence belongs to the operator for its approved process at that site. A new operator applies or notifies in its own name for its own process, even if the building and a similar process were licensed before. The previous licence history is still worth reviewing, because conditions and complaints attached to the site can affect your application.

Do we need the landlord's consent for the factory licence?

The application needs evidence of your right to use the site, and in practice the landlord's documents and cooperation. Write into the lease that the landlord will provide the title, building permits and consents your applications require, within a set period, and that the premises may be used for your specific process.

What happens to our fit-out when the lease ends?

Whatever the lease says. Leases usually require reinstatement to the original condition or leave improvements to the landlord. Agree which items are removable, which stay, whether reinstatement can be waived, and how the deposit is handled, before you invest in the building.

Leasing a Ready-Built Factory in Thailand: What to Check Before You Sign

Why the lease matters more than the rent

A ready-built factory lets a manufacturer skip land, design and construction and move straight to fit-out. That is why many foreign companies start this way, especially in industrial estates.

The rent is the part everyone negotiates. The parts that decide whether production starts on time are elsewhere: whether the building's approved use matches your process, whether there is enough power, whether the landlord will produce the documents your licences need, and what you may change inside the building.

1. Who you are really contracting with

Check that the landlord is the owner, or has the right to lease for the full term you need.

Estate developer. Usually the building owner, sometimes holding the land under its own long lease. Ask how long the developer's own rights run.
Private owner. Check title, mortgages and whether a lender's consent is needed to lease.
Sub-landlord. Check that the head lease allows subleasing and outlasts your term.

2. Term and registration

A lease of more than three years must be in writing and registered to be enforceable beyond three years.
An ordinary lease is limited to thirty years, renewable by agreement.
Separate legislation permits commercial and industrial leases of more than thirty and up to fifty years in qualifying areas, with registration.
A renewal option is a promise to agree later. Write the renewal mechanism clearly, including how rent will be set.

Registration also protects you on a sale: a registered lease binds the new owner.

3. Approved use, building permits and the factory licence

Before signing, obtain copies of the building permits and confirm the building is approved for industrial use of the kind you intend.

Your factory licence or notification is in your name, for your process, at that site. A previous tenant's licence does not transfer to you. The application will need the landlord's documents, so the lease should oblige the landlord to supply them promptly. See your factory licence in Thailand.

Where the plant falls into a class that needs a licence before operating, the lease start date and rent-free period should reflect the licensing timeline, not just fit-out.

4. Fit-out and modifications

Fit-out often changes more than it appears to: mezzanines, cranes, floor loading, openings for ducts, extra electrical rooms, wastewater treatment.

Some changes need building permits
Some change the factory's layout or capacity and need to be reflected in licensing
All of them need landlord consent under the lease

Agree a fit-out approval process with fixed response times, and list the works already approved in the lease.

5. Power, water and wastewater

Power capacity is the most common surprise. Confirm in writing:

The available electrical capacity at the building and who pays for upgrades
Whether a transformer upgrade is needed and how long it will take
Water supply and wastewater limits, including estate discharge standards
Who is responsible for environmental monitoring and reporting

6. Promotion certificate and estate permissions

If you hold or will apply for investment promotion, the certificate names the project location. Make sure the site can be the promoted location, and consider what happens to the lease if the promotion is not granted.

Inside an industrial estate, the operator usually needs estate permissions as well as general approvals. The lease should state who applies and who supplies what.

7. What happens if the landlord sells, or you need to leave

Sale. A registered lease binds the buyer. Confirm the lease is registered and that the new owner steps into the landlord's obligations.
Early exit. Negotiate a break right or assignment right if volumes are uncertain.
Assignment within your group. Allow transfer to an affiliate, which may be needed after a restructuring.
Reinstatement. Agree what you remove, what stays and how the deposit is returned.

8. Other terms worth reading twice

Insurance. Who insures the building, who insures contents and business interruption
Repairs. Structural repairs and roof, versus internal maintenance
Rent review. How and when rent changes
Default. Cure periods before termination, and what happens to machinery on site
Disputes. Court or arbitration, and the language of the contract

Checklist before signing

Landlord's right to lease for the full term confirmed
Lease registered for its term
Building approved for your intended industrial use
Landlord obliged to supply documents for your licences and promotion
Rent start aligned with licensing, not just fit-out
Fit-out approvals process and approved works listed
Power capacity and upgrade responsibility in writing
Wastewater and environmental responsibilities allocated
Renewal, break, assignment and reinstatement terms agreed