The Department of Business Development, together with five partners specializing in combating nominee practices, conducted inspections in Phuket targeting tourism and related businesses. They uncovered numerous irregularities, including multiple businesses sharing the same address and individuals falsely claiming to be directors when providing information to officials. Additionally, accounting and legal office employees were found acting as shareholders or directors in companies on behalf of foreigners, clearly indicating nominee behavior. Immediate legal action was taken against confirmed offenders, while those with unclear situations were summoned for further clarification.
Mr. Poonpong Nainapakorn, Director-General of the Department of Business Development, Ministry of Commerce, revealed that on 29-30 January 2026, the Department dispatched an anti-nominee team to collaborate with five partner agencies: the Department of Special Investigation (DSI), Phuket Tourist Police, Phuket Immigration Office, Phuket Provincial Office of Tourism and Sports, and Phuket Provincial Commerce Office. They conducted inspections in Phuket’s tourism industry, including tour operators, hotels, restaurants, and boat rentals, targeting suspicious behaviors where Thai individuals held shares on behalf of foreigners (nominees) to evade foreign business ownership laws.
Initially, they inspected 10 targeted suspicious businesses and examined accounting and legal offices suspected of aiding foreigners in using Thai nominees. Phuket is a high-risk province with 29,090 registered companies, of which 11,263 involve Thai-foreign joint ventures, accounting for 38.72%. Notably, in all these, foreigners hold less than 50% shares, thus avoiding the Foreign Business Act of 1999. This suggests many foreigners might be using Thai nominees to circumvent the law. This operation aims to cut off the source of nominee businesses in Phuket’s tourism sector, preventing illegal foreign business operations exploiting Thailand’s resources without regard for legality or regulations.
Director-General Poonpong added that among the 10 businesses inspected, three had the same address as accounting offices. During the operation, an accountant from one such office falsely claimed to be a company director and presented ID cards of other individuals (actual directors) to provide information to officials on their behalf. Police have charged both the accountant and the director for offenses involving the use of another person's ID card under the Identification Card Act of 1983.
Furthermore, inspections extended to legal and accounting firms identified as high-risk (where directors of these firms hold shares in multiple companies involving foreigners as shareholders or directors) and to targeted nominee entities. Five such entities were summoned to explain the facts to officials. Among these, three cases involved employees or accountants serving as directors and shareholders in companies with foreign directors or shareholders. The department and related agencies will conduct in-depth investigations to establish facts and prosecute those assisting foreigners in illegal business operations.
“The department and all partner agencies, from both the public and private sectors, remain committed to seriously and continuously preventing and combating nominee practices. This is to create a transparent and fair business environment, block dishonest actors, and strengthen Thai entrepreneurs to compete sustainably. We are enhancing proactive efforts, strictly enforcing laws, and using behavior analysis systems of legal entities to improve the accuracy, coverage, and targeting of nominee crackdowns. Simultaneously, we will streamline processes to facilitate foreign investors legally investing in Thailand,” he stated. Director-General Poonpong concluded,
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