The Department of Business Development, together with the Interior Ministry, has inspected businesses in Rayong Province, discovering several suspected foreign nominee companies. They have ordered urgent submission of documents for verification, warning that confirmed violations will result in severe penalties including imprisonment and fines.
Mr. Kittiwat Patchimnan, Director-General of the Department of Business Development, Ministry of Commerce, revealed that on Saturday, 17 October 2026, he instructed the Director of the Division for Prevention and Suppression of Illegal Business and the nominee crackdown team to inspect businesses in Pluak Daeng District, Rayong Province. The operation was led by Mr. Ponpeer Suwanchawi, Deputy Minister of Interior, alongside the Department of Provincial Administration and the Department of Employment. The inspection targeted businesses such as hotels, apartments, entertainment venues, tourism services, and factories suspected of legal violations or using Thai nationals as front persons (nominees).
It was found that Pluak Daeng District, Rayong Province, has several legal entities considered at risk of being nominee companies, with the following findings.
1. Four legal entities registered with the same head office address. Upon reviewing the registration data of these legal entities, it was established that two entities have foreign status. Initially, they have received investment promotion from the Board of Investment (BOI) and obtained foreign business certificates.
However, examination of these companies’ financial statements from the previous year showed they declared wholesale trade of electronic equipment and parts, which falls outside the scope of business activities authorized by their certificates.
The other two legal entities have foreign shareholders holding no more than 50%. They engage in import-export, buying and selling factory equipment, construction materials, chemicals, and machinery. These activities fall under business categories three (14) retail trade and (15) wholesale trade according to the Foreign Business Act B.E. 2542 (1999). They are considered at risk of being nominees if Thai individuals assist, support, or hold shares on behalf of foreigners. The department and related agencies will conduct in-depth investigations to determine if these businesses operate through nominee arrangements.
2. Legal entities suspected as nominee groups. These operate in accommodation services and food and beverage services. One Thai shareholder holds 10,600 shares, accounting for 53% of total shares, while two foreign shareholders hold a combined 9,400 shares, or 47%. The hotel manager serves as both director and shareholder, explaining that the hotel business involves renting premises and converting them into a hotel. They admitted the investment funds are foreign-owned to avoid the company’s foreign status in hotel operations. Additionally, it was found the hotel operates without a license, which the Department of Provincial Administration will legally address.
The Director-General of the Department of Business Development added that the department has ordered the targeted businesses to submit documents clarifying their investments. Should they be found violating the Foreign Business Act, strict criminal prosecution will follow. Thai individuals acting as nominees face penalties under Section 36: imprisonment up to three years, fines between 100,000 and 1,000,000 baht, or both. Foreigners illegally conducting business without permission face the same penalties under Section 37.
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