To promote industrial development and strengthen factory management and guidance, the Act is hereby establishment.

The competent authority referred to herein: Ministry of Economic as referred to central; Municipal City Government as referred to Municipal City; County (City) Government as referred to County(City).

The factory referred to herein mean a constant place with certain level of space available for manufacturing, processing goods or its production equipment reaching certain power capacity or thermal energy.
The scope of good manufacturing or processing, certain level of space and power capacity or thermal energy specified in preceding paragraph shall be announced by central competent authority.
The business with constant place for good manufacturing and processing but not satisfactory to preceding standards may still apply for permit or registration pursuant to the Act. Upon approval of competent authority, the business shall manage the factory in accordance with the Act.
In case that scope of factory is altered due to amendment of standards set forth in second paragraph, central competent authority shall specify deadline for application of permit or registration to the extent of said standards aiming at businesses originally beyond the factory scope. As to businesses without in the scope of factory, factory registration procedures shall be incorporated in said standards.

The duties of competent authorities are as follows:
1.Central competent authority:
(1)Draw up or establish factory management laws and regulations and standards for factory establishment.
(2)National and industrial factory investigation.
(3)Approval of application for transcript of national factory registration
(4)Implement factory guidance to businesses selected
(5)Audit and supervise disposition to factories violating regulations of the Act
(6)Permit and registration of establishment, management and guidance for factories in science-based industrial park, processing zone, free trade zone, agricultural science park and other specific zones approved by Executive Yuan.
(7)Other guidance and supervision matters regarding factory management.
2.Competent authorities of Municipal City and County (City):
(1)Mange permit, registration of factory establishment and its cancellation and abolishment.
(2)Investigation of factories within the jurisdiction.
(3)Approval of application for registration transcript and certificate of factory within the jurisdiction.
(4)Implement guidance to factories with in the jurisdiction.
(5)Mange violation of the factory within the jurisdiction.
(6)Other matters assigned by central competent authority.

Central competent authority may assign its subordinate organization, designate or commission other organization (institution) to manage matters specified in the Act.