The Department of Business Development (DBD) teamed up with the Royal Thai Police to launch an operation targeting foreign nominee networks in Phuket and Krabi, uncovering 66 companies suspected of holding land and real estate valued at over one billion baht.
The DBD integrated efforts with the Royal Thai Police, the Department of Lands, provincial commerce offices, and related agencies to investigate businesses suspected of being nominees in Phuket and Krabi. They found 66 companies using Thai shareholders as proxies for foreigners, involving land and real estate holdings worth more than one billion baht. The department supports providing evidence for legal prosecution and is committed to seriously combating nominee practices to ensure business fairness and protect national interests.
Mr. Poonpong Nainapakorn, Director-General of the Department of Business Development, Ministry of Commerce, revealed that on 20 June 2026, he, along with M.L. Puthong Thongyai, Deputy Director-General, and the nominee crackdown team, conducted field inspections of businesses suspected of using Thai representatives as nominees in Phuket and Krabi. This aligns with the government's urgent policy to suppress the use of Thai shareholders acting on behalf of foreigners, which violates the Foreign Business Act B.E. 2542 (1999). The DBD supported in-depth examination of corporate registration data, shareholder structures, and financial statements. This operation was in collaboration with Pol. Gen. Samran Nualma, Deputy Commissioner of the Royal Thai Police and director of the Center for Suppression of Transnational and Illegal Immigration Crimes, along with the task force combating illegal foreign business operators, provincial governors, representatives from the Department of Lands, provincial commerce offices of both provinces, and other relevant government agencies. The operation, named "Phase 3 Crackdown on Foreign Nominee Networks, Andaman Coast" by the Royal Thai Police, aims to prevent and suppress illegal foreign business operations and maintain fair trade competition.
Director-General Poonpong added, "In Phuket, the operation identified 10 companies exhibiting nominee characteristics related to illegal land holdings—specifically four land plots totaling over 2 rai valued at approximately 116 million baht. Another 39 companies with foreign shareholding exceeding half are under further investigation concerning 52 land plots worth about 115 million baht, totaling assets in Phuket valued at over 231 million baht. Notably, the department jointly raided a hotel in Patong District, registered in 2019, operating hotels, resorts, condominiums, and motorcycle rentals, and formerly a tour operator whose license was revoked due to breaches regarding board composition. Investigation revealed Thai directors and shareholders holding shares across three companies and serving as directors in five, with Thai shareholders admitting to holding shares on behalf of Israelis. It was also found that companies operating restaurants and cannabis shops share the same location."
"In Krabi, nine companies were found to have nominee characteristics, holding 17 land plots covering more than 6 rai valued at about 209 million baht. Additionally, eight companies with questionable shareholding structures are under further scrutiny concerning eight land plots totaling over 8 rai valued at approximately 290 million baht, with related assets amounting to more than 499 million baht."
"Furthermore, several significant cases were uncovered, such as Tropical House Co., Ltd., a construction and real estate development company owned by Polish investors, building pool villas in a prime Krabi location. Registered capital is 4 million baht, holding 16 land plots over 6 rai valued around 200 million baht—exceeding registered capital. Official records show 100% Thai shareholding, making it a Thai company, but in reality, the business is managed and controlled by foreigners using Thai nominees. It is believed the Thai shareholders did not make real investments. Another company, Salabuf Enterprise Co., Ltd., recruits resorts to offer services to tourists favoring naturism in private resort and beach activities. The Thai directors could not provide credible information confirming genuine investment, despite 100% Thai shareholding. The company exhibits multiple irregularities suggestive of nominee arrangements."
"The department prioritizes serious and ongoing prevention and suppression of nominee practices, especially in key economic and tourist areas with significant foreign investment. It supports providing corporate registration, shareholder, and financial data because using Thai shareholders as proxies for foreigners distorts Thailand's economic system, creates unfair competition, and adversely affects Thai entrepreneurs. The DBD will continue integrating data and cooperating closely with partner agencies, especially the Royal Thai Police, Department of Lands, provincial governors of high-risk nominee areas, and other relevant bodies to investigate, examine, and take decisive legal action against offenders. Efforts will expand nationwide to related networks to foster a transparent, fair business environment and promote lawful investment. The department is preparing to submit information on 623 companies across four provinces (Surat Thani, Phuket, Krabi, Phang Nga) where accountants are implicated in supporting foreigners' nominee activities to the police task force for legal action."
"However, I emphasize that Thailand remains open and ready to facilitate foreign investment conducted lawfully. Foreign operators can invest and conduct business under the Foreign Business Act B.E. 2542 (1999). Yet, authorities will take firm action against those exploiting nominee channels to evade laws or seek undue benefits," Director-General Poonpong concluded.
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