Phuket –
Thai authorities have intensified their crackdown on foreign nominee ownership in the real estate sector, following a recent court ruling that penalized 23 individuals found guilty of violating the Foreign Business Act.
The Department of Business Development (DBD) told the Phuket Express that all convicted nominees were fined 200,000 THB each, with a suspended two-year prison sentence and mandatory one-year probation. Additionally, the court ordered the dissolution of their businesses, marking a major enforcement action against illegal foreign business operations.
The case, which was initially flagged by the DBD, involved Thai citizens acting as legal representatives for foreign investors to bypass ownership restrictions. This practice was particularly prevalent in Thailand’s tourism hotspots, including Phuket, where businesses such as hotels, restaurants, and real estate ventures were found to be operating under nominee structures.
DBD Director-General Oramon Sapthaweetham stated that the department conducts regular inspections to identify high-risk businesses that potentially breach Thai business laws. Over the past few years, authorities have focused on industries where foreigners have sought illegal economic advantages through nominees, especially within the tourism, hospitality, and property sectors.
“The ruling serves as a clear warning to Thai nationals who assist foreign entities in circumventing the law. Their actions not only undermine fair competition but also negatively impact local entrepreneurs,” Oramon said.
The investigation revealed that some law firms and accounting offices in Phuket had facilitated nominee arrangements by registering companies under Thai names while foreign investors maintained actual control over operations. With sufficient evidence gathered, the DBD referred the matter to the Department of Special Investigation (DSI), which escalated the case to the public prosecutor.
Court documents show that the accused parties were charged with enabling foreigners to engage in business activities prohibited under Thai law. Prosecutors argued that such practices distort market dynamics and create unfair advantages for non-Thai investors.
Authorities further warned that individuals involved in nominee arrangements could face severe legal consequences, including imprisonment of up to three years and fines ranging from 100,000 THB to 1,000,000 THB. If they fail to comply with court orders, additional daily fines may apply.
The DBD has reiterated its commitment to preventing nominee business arrangements and urged the public to report suspicious activities. “Protecting Thai businesses and ensuring fair economic practices remain our priority,” Oramon concluded.
