The Department of Business Development, together with Immigration, conducted a field inspection at a prominent mall in the Laksi area to examine two companies suspected of being Chinese nominee fronts. They found suspicious financial routes and use of Thai individuals as fronts, urgently summoning evidence; if proven guilty, penalties include up to three years imprisonment.
Mr. Poonpong Nainapakorn, Director-General of the Department of Business Development, revealed that on 1 Jul 2026, the department's Nominee Suppression Team, in cooperation with the Immigration Office, inspected two high-risk legal entities at IT Square Mall, Laksi, Bangkok. This followed information from Immigration regarding irregular financial transactions potentially linked to foreign-operated businesses. The joint inspection aimed to determine if these activities violated the Alien Business Act B.E. 2542 (1999).
Investigation of the targeted companies revealed the following suspicious activities:
First company: A legal and accounting consultancy registered on 27 Jun 2025 with a registered capital of 4 million baht (60% Thai shareholders, 40% Chinese). It employs eight Thai and two Chinese staff. Initial findings suggest nominee use, citing a husband-wife relationship between Thai and Chinese shareholders without registered marriage. Officials plan to extend investigations into management authority, payment methods, and financial flows, consistent with Immigration's ongoing inquiries.
Second company: An overseas education counseling business registered on 25 Aug 2025 with a registered capital of 4 million baht (51% Thai shareholders, 49% Chinese). On-site officials found no company directors present—only Thai employees who reported that actual management and decision-making are by Chinese nationals. Thai staff handle visa services only; other transactions require customers to contact Chinese personnel directly via the WeChat app, with payments made to foreign accounts.
Mr. Poonpong added that the department has issued letters summoning the directors and shareholders of both entities to clarify facts and submit documents regarding investments, sources of capital, management, and business operations within a specified timeframe for review. If evidence confirms the use of Thai persons as fronts or foreign nationals conducting business illegally, the department will take strict legal action and coordinate with relevant agencies to proceed accordingly. The offense of nominee use carries penalties of up to three years imprisonment, fines ranging from 100,000 to 1 million baht, or both, and courts may order business cessation or forced divestment violating the law.
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