Phuket—
The Department of Business Development (DBD) uncovered widespread irregularities that point to nominee structures being used to circumvent Thai law.
The DBD told the Phuket Express that recently officials from the DBD, the Department of Special Investigation (DSI), Phuket Tourist Police, Phuket Immigration, the Provincial Office of Tourism and Sports, and the Phuket Provincial Commerce Office conducted joint raids on tourism enterprises including tour operators, hotels, restaurants, and boat rental services.
Investigators found evidence suggesting that Thai nationals were being used as proxy shareholders or directors for foreign investors, a practice known as “nominee businesses.”
Key Findings
- Ten businesses targeted: Initial inspections focused on 10 suspect companies.
- Shared addresses: Three firms were registered at the same location as accounting offices, raising red flags.
- False representation: An accountant was caught impersonating a company director, even presenting another person’s ID card to officials. Police charged the individual under the Identification Card Act.
- Law firms and accounting offices implicated: Several offices were found to have staff serving as shareholders or directors in multiple companies with foreign involvement, an unusual pattern suggesting nominee activity.
Phuket is considered a high-risk province due to its tourism-driven economy. Out of 29,090 registered companies, more than 11,263 (38.7%) involve foreign investment. While most foreign stakes remain below 50% , avoiding restrictions under the Foreign Business Act of 1999 , authorities suspect many of these structures conceal nominee arrangements designed to bypass the law.
Five companies have been summoned to provide further clarification, with three already identified as using employees or accountants as shareholders in firms controlled by foreign nationals. Officials pledged deeper investigations and swift prosecution against those found guilty of facilitating illegal business operations.
DBD Director-General Poonpong Naiyanapakorn explained that the crackdown is to dismantle nominee networks at their roots:
“We are determined to enforce the law rigorously to ensure transparency and fairness in Thailand’s business environment. By strengthening proactive measures and using data-driven analysis of corporate behavior, we will prevent unscrupulous actors from exploiting Thai resources while protecting legitimate investors.”
Authorities stressed that while enforcement will be strict, Thailand remains committed to providing a welcoming environment for lawful foreign investment.
