The Department of Business Development (DBD) has joined forces with the Department of Special Investigation (DSI) to eradicate foreign nominee businesses taking over tourism enterprises. The pilot project on Koh Samui and Koh Phangan scanned 11,426 companies and plans to expand operations to Phuket and Pattaya, aiming to categorize these cases under money laundering offenses.
Mr. Poonpong Nainapakorn, Director General of the Department of Business Development (DBD), Ministry of Commerce, revealed that the department has consulted with Police Lieutenant Colonel Yutthana Praedam, Director General of the Department of Special Investigation (DSI), about cooperating to prevent and suppress nominee businesses in Thailand. They found that many foreign-operated businesses in popular tourist destinations exhibit characteristics of nominee companies. After scanning company data in tourism provinces, they identified a high likelihood of numerous nominee companies in various forms. They have jointly developed a plan for intensive nominee investigations, initially focusing on two famous islands: Koh Phangan and Koh Samui in Surat Thani Province. This focus arose from complaints by residents and business sectors about some foreigners forming groups to exploit Thailand's resources improperly, showing disregard for the law, burdening society, and causing frustration among local communities.
The approach will classify the 11,426 scanned companies involving foreign partners on the two islands into high, medium, and low nominee probability categories. Investigations will begin with companies most likely to be nominees and proceed in order. If clear complaints from the public indicate nominee behavior, a nominee suppression team will be deployed immediately. Coordination with relevant partner agencies will enhance inspections, with strict enforcement by each agency. This multi-dimensional approach will allow comprehensive legal action against nominee companies for various offenses, such as tourism matters referred to the Department of Tourism, labor issues to the Department of Labor Protection and Welfare, and tax matters to the Revenue Department.
Beyond the pilot southern provinces, the Department of Business Development plans to extend inspections to other key tourist provinces with high proportions of foreign joint ventures, including
Hua Hin with 2,081 companies (51.24%).
Phuket with 11,626 companies (39.22%).
Krabi with 749 companies (20.88%).
Phang Nga with 346 companies (20.53%).
"Nominee businesses are a national issue. Prime Minister and Minister of Interior Anutin Charnvirakul has directly ordered the problem to be eradicated. Deputy Prime Minister and Minister of Commerce Suphachai Suwanpanit has emphasized prevention and suppression. Previously, some suspected nominee companies on Koh Phangan have been investigated, such as an accounting office whose owner held shares in 66 companies, using 89 buildings and residences as company addresses. Foreign nominee ownership of real estate was inspected, and information on 34 companies engaged in real estate and tourism on Koh Samui with assets exceeding 100 million baht was forwarded to the Anti-Money Laundering Office to trace financial transactions. Moving forward, intensified inspections will proceed jointly with DSI on Koh Phangan, Koh Samui, and other tourist provinces," said Mr. Poonpong.
To prevent the registration of nominee legal entities, the department is discussing with the Thai Bankers' Association to review investments by Thai shareholders in companies with foreign joint investors. Clarity on which groups will be inspected is expected next week. Since measures introduced on 1 January 2026, requiring strict financial documentation and oversight of individuals listed in the HR-03 social welfare card database, nominee company registrations have dropped by 60%. Further measures from 1 April 2026 requiring confirmation that shareholders have genuinely invested and paid capital reduced registrations by 75%. Additional measures are necessary to prevent any nominee companies from slipping through.
Police Lieutenant Colonel Yutthana Praedam, Director General of the Department of Special Investigation (DSI), stated that DSI has continuously collaborated with the Department of Business Development in suppressing nominee companies. The focus has been on businesses operating without permission under the Foreign Business Act of 1999 with cases exceeding 100 million baht and other significant cases. They have proposed to the Special Case Committee to designate these as special cases for deeper, broader investigations. Recently, the Anti-Money Laundering Office is preparing legislation to classify nominee offenses as predicate crimes for money laundering, which will enhance enforcement by allowing financial investigations and asset seizures related to the offenses.
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