The entity of factory shall be subject to sole proprietorship, partnership, company or that may engaging in manufacturing, processing pursuant to laws and regulations.

The factory shall have the name of entity affiliated with. One entity has two or above factories within in same municipal city, county (city), science-based industrial park, processing zone, free trade zone, agricultural science park and other specific zones approved by Executive Yuan shall identify the factories.

The factory shall have responsible person who shall not be incompetent or limited capacity for civil conduct.
Meanwhile, the responsible person shall have residence or domicile in Taiwan.

The land used for factory shall be subject to land in industrial zone of urban planning, non-urban Type D construction land, development industrial zone pursuant to law or other legal land available for establishing factory.

After completion of factory construction, the factory shall apply for registration in accordance with the Act and shall not engage in manufacturing and processing without permission of competent authority. However, the military factory subordinated to Ministry of National Defense shall be exception.
In case that military factory of Ministry of National Defense has become a factory of public or private business, the registration shall be managed in accordance with the Act within three years from reformation.

Where there is one of following circumstances, the factory shall obtain establishment permit in advance:
1.The factory shall have permit of industrial competent authority pursuant to laws.
2.The permission is required by announcement of central competent authority in consideration of equal industrial development, reasonable resources application or energy saving policies.

Upon approval of establishment, the factory shall manage factory registration by deadline and the original permit will be invalid as overdue.
Preceding deadline of approval shall be two years. However, if it cannot be completed for just reason, the application for extension may be filed prior to expiration. The extension period shall be subject to one year and up to three times.

The application for factory permit or registration shall specify following items:
1.Factory name and address
2.The name and residence or domicile of responsible person.
3.Industrial category
4.Major products
5.Power capacity, thermal energy and water volume used for production equipment.
6.Floor space of factory and building
7.Other matters specified in announcement of central competent authority.
The industrial category specified in item 3 shall be announced by central competent authority.

Where there is one of following circumstances occurs, no permit or recognition of change shall be allowed:
1.The environmental impact assessment shall be implemented in accordance with Environmental Impact Assessment Act, while its related environmental impact prospectus or report has not yet approved by environmental protection competent authorities.
2.Violate land control regulations.
3.Violate illegal construction or building purpose regulations.
4.Suspension of accepting newly establishment or expansion of existed factory is announced by central competent authority in accordance with section 2 of paragraph 1 of Article 17.

Where there is one of following circumstances occurs, no registration or change registration shall be managed:
1.Products are prohibited from manufacturing pursuant to laws.
2.Violate land control regulations.
3.Violate illegal construction or building purpose regulations.
4.Specified business type, scope and magnitude of environmental protection competent authority, while its related environmental impact prospectus, report or pollution prevention plan has not yet approved by environmental protection competent authorities
5.The equipment is not satisfactory to factory establishment standards as required
6.No prior permission is obtained for product manufacturing as required.
7.No prior permission is obtained in accordance with regulations set forth in Article 11 or the factory construction is not complied with content approved.
8.Suspension of accepting newly establishment or expansion of existed factory is announced by central competent authority in accordance with section 2 of paragraph 1 of Article 17.

Where there is change of items set forth in factory permit, the permission for change shall be acquired before managing factory registration.

Central competent authority may take following actions as considering equal industrial development, reasonable resources application, ecological environment and maintenance of public benefit or requirement of international conventions or treaties such policies:
1.Require undertakings to permit for factory establishment or approval or registration.
2.Announce suspension of accepting newly establishment or expansion of existed factory for product or area selected.
3.Announce compulsory reduction or suspension of production in existed factory for product or area selected.
The type of undertakings set forth in paragraph 1 shall be added in accordance with type of factory, product items, operation method or other actions need to be taken under policies. The central competent authority shall establish the procedures governing additional undertakings.
The announcements set forth in item 2 and 3 of paragraph 1 shall be made by central competent authority upon approval of Executive Yuan. For compulsory reduction or suspension of production in existed factory for product in accordance with regulations set forth in item 3 of paragraph 1, the Government may provide compensation. Central competent authority shall establish measures governing the scope, standards, procedures and matters regarding compensation.