The Department of Business Development (DBD) is intensifying measures to combat foreign nominee businesses, effective 1 April. They have introduced strict rules requiring company registrants to sign a declaration confirming actual investment, and will send lists of high-risk cases to the Central Investigation Police for review. Authorities warn that providing false information may result in up to three years in prison. Special monitoring will focus on five key tourist provinces.
Mr. Poonphong Nainapakorn, Director-General of the Department of Business Development, revealed that the department has introduced new measures to enhance prevention of nominee issues (where Thais support foreigners in conducting prohibited businesses or businesses requiring permission without complying with the Foreign Business ActB.E. 2542 [1999 CE]) which require partners, managers, or directors signing company registration documents to provide a written confirmation that all partners or shareholders have genuinely invested and paid their investment, and have not supported or collaborated with foreigners as nominees. This will take effect from 1 April 2026., and that the written confirmation must declare all shareholders have genuinely invested and are not supporting foreign nominees, effective from 1 April 2026.
“The reason for strengthening measures, despite earlier orders requiring registration of companies with less than 50% foreign shareholding or foreign directors—considered high-risk nominee cases—to provide financial evidence proving genuine Thai shareholder investment, which reduced such registrations by 65%, is that evasion still occurs. Therefore, additional orders have been issued.”
Under the new order requiring registrants to confirm investment information, the department will send lists ofindividuals suspected of risky behaviorto the Central Investigation Police Division for thorough investigation. They also warn that providing false information to officials violates Criminal Code sections 137and 267,with penalties including imprisonmentup to 6 months,or finesup to 10,000 baht,or both imprisonment and fines, or imprisonmentup to 3 years,or finesup to 60,000 baht,or both, depending on the case.
Mr. Poonphong reiterated that before this order takes effect, any abnormal business registrations suspected to be attempts to evade the new measures—especially in Chonburi, Chiang Mai, Surat Thani, Phuket, and Krabi, provinces with high nominee activity—will be subject to special case-by-case inspections and strict legal action.
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