Crackdown on Nominee Businesses in Phuket: 196 Cases Sent to Court, 9 Verdicts Issued

Phuket –

Oversight of foreign investment in Phuket has intensified after the House Committee on Commerce and Intellectual Property conducted a field visit on September 14th, 2026, to examine economic activity and foreign-owned businesses in the province. The committee, led by Chairman Samrit Tantanasap, identified four key issues requiring urgent attention: nominee businesses, foreign land ownership and leasing, city planning revisions, and migrant labor management.

According to the Phuket Provincial Commerce Office, more than 32,000 companies are registered in the province, with over 11,000 (34.59%) involving foreign shareholders. The largest groups of foreign investors come from Russia, China, the UK, France, and Australia.

Authorities flagged 6,682 companies as potentially operating under nominee structures. Evidence was sufficient to prosecute 196 cases, divided into:

• 31 nominee cases
• 165 land ownership cases

So far, courts have issued verdicts in nine cases, with fines ranging from 50,000 baht to 500,000 baht. Another six cases are under trial, while 191 remain under investigation.

The heightened scrutiny has already reshaped the investment landscape. Registrations of companies with foreign shareholders have dropped by more than 60%, while business dissolutions have risen by 30%. This signals the effectiveness of enforcement but also raises policy questions about balancing strict oversight with maintaining investor confidence.

Saranyut Mallam, President of the Phuket Tourism Business Association, voiced support for tackling nominee structures but warned against blanket measures that could harm legitimate foreign investors. He urged authorities to focus on shareholder structures, investment sources, tax compliance, and actual business operations to distinguish fraudulent setups from lawful enterprises.

The private sector also called for updated city planning to match Phuket’s rapid growth and better management of migrant labor, which is vital to tourism, hospitality, and service industries.

Phuket MP Chalermpong Saengdee submitted information on five companies suspected of nominee activity, urging the committee to expand investigations into shareholder links, funding sources, and business models.

Despite nominee crackdowns, Phuket remains a magnet for investment. In 2025, the Board of Investment (BOI) approved 31 projects worth 12.6 billion baht, with foreign investment exceeding 5 billion baht. Exports grew by more than 25%. In 2026, Phuket generated 263 billion baht in tourism revenue, supported by nine new BOI-approved projects.

The committee plans to submit policy recommendations to the government, aiming to strike a balance: curbing nominee businesses and illegal land ownership while ensuring that legitimate foreign investors can continue contributing to Phuket’s economy.