Phuket —
Police in Phuket have launched a sweeping operation against “nominee” businesses, raiding eight targeted locations across the island as part of a nationwide campaign to curb illegal foreign ownership.
Pol. Maj. Gen. Sinlert Sukhum, Commander of Phuket Provincial Police, announced the results at a press briefing attended by provincial officials, station chiefs, and members of the press. The crackdown, carried out under government and Royal Thai Police directives, focused on rental car companies, real estate firms, and childcare centers in Patong, Chalong, Cherng Talay, Karon, Kamala, Sakhu, and other areas.
Authorities meticulously examined corporate registration documents, business licenses, shareholder structures, registered capital, and financial records to determine whether Thai nationals were acting as proxy shareholders for foreign investors. Evidence gathered will be used to pursue legal action and expand investigations further.
Maj. Gen. Sinlert explained that any proven nominee arrangements will be prosecuted without exception, targeting Thai shareholders, corporate entities, and foreign beneficiaries alike. He noted that seven similar cases have already been brought to court, with some resulting in convictions and others still under judicial review.
Officials issued a stern warning to the public not to accept offers to serve as proxy shareholders. Under Thailand’s Foreign Business Act of 1999, acting as a nominee carries severe penalties: up to three years in prison, fines ranging from 100,000 to 1,000,000 baht, or both. Daily fines of 10,000 to 50,000 baht may also be imposed for continued violations. Courts may order businesses to cease operations, revoke corporate registrations, or dissolve unlawful shareholding structures.
Citizens are urged to report suspicious activity to local police stations or call the 191 emergency hotline, which operates 24 hours a day.
