The Department of Business Development (DBD) teamed up with partner agencies to launch a widespread crackdown in Pattaya, Chonburi Province, on "nominee" businesses in tourism and real estate. They uncovered suspicious cases of a single Thai holding shares on behalf of foreigners in over 100 companies, totaling more than 300 million baht in value. Immediate revocation orders were issued for four tour companies, with threats of severe penalties including up to three years imprisonment and fines of one million baht.
Mr. Poonphong Nainapakorn, Director-General of the Department of Business Development, revealed that from 18 to 20 March 2026, the DBD's Nominee Crackdown Team, along with allied agencies including the Department of Tourism, Tourist Police, the Department of Special Investigation (DSI), Immigration Bureau, and Chonburi Provincial Commerce Office, jointly conducted field inspections in Pattaya, Chonburi Province to investigate businesses suspected of beingnominee operations.These are cases where foreigners use Thais as proxies or shareholders to conceal their involvement, enabling foreigners to conduct business in Thailand under the Alien Business Act B.E. 2542 (1999) without complying with the law. The focus was on tourism-related businesses and real estate.
The investigation included four accounting and legal offices registering multiple companies at the same address. They found a single Thai shareholder listed in over 100 companies, with total investments of no less than 300 million baht. This group is suspected of holding shares on behalf of foreigners or assisting and advising foreigners to operate prohibited or license-required businesses under the Alien Business Act. The department has demanded urgent explanations from those involved and warned that if violations are confirmed, legal action will be pursued to the fullest extent.
Additionally, they inspected legal entities engaged in the travel business.Initial findings revealed four legal entities had changed company directors, resulting in non-compliance with the qualifications under Section 17 (1) of the Travel Business and Tour Guide Act B.E. 2551 (2008) and its amendments. Officials consequently issued revocation orders on-site for the following four companies: Alithea Tour Co., Ltd., Yor Indo-Thai Group Co., Ltd., Y J A S Co., Ltd., and The V-Ex Co., Ltd.
Meanwhile, inspections of foreign businesses engaged in real estate tradingwere conducted,even though such activities are prohibited for foreigners. The department will compile facts and evidence for further in-depth investigation. If violations are confirmed, strict legal enforcement will follow. They also found 146 foreign-operated businesses in Chonburi Province engaging in prohibited activities or operating without authorization under the Alien Business Act.
“The department aims to prevent and suppress nominee businesses because they distort the economic structure and disadvantage Thai entrepreneurs. When violations are detected, we coordinate with law enforcement agencies to prosecute fully. We will continue nationwide inspections of suspected nominee businesses. We warn Thais who aid foreigners in illegal activities to stop such conduct immediately, as they face the same penalties as foreigners—up to three years imprisonment or fines ranging from 100,000 to one million baht, or both. Failure to comply with court orders carries additional daily fines of 10,000 to 50,000 baht until violations cease.”
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