Thailand Cracks Down on Foreign-Owned Businesses Using Local Nominees

Thai authorities have launched a major crackdown on foreign-owned businesses suspected of using local nominees to bypass ownership laws.

The move follows investigations into hundreds of companies registered under Thai citizens who allegedly had little or no involvement in the businesses they officially owned.

One case involved a company registered as a nail salon in Krabi province. Authorities allege the business actually operated as an adult content enterprise managed by an Israeli woman through the subscription platform OnlyFans.

Officials said the company was one of nearly 500 businesses registered through the same accounting firm. The businesses included beauty salons, cannabis farms, tourism companies, and other ventures linked to foreign operators.

Foreign Ownership Rules Under Scrutiny

Thailand’s Foreign Business Act generally limits foreign ownership in local businesses to 49 percent.

To bypass the restriction, some foreign investors reportedly pay Thai citizens to act as majority shareholders on paper while retaining actual control of the business.

Authorities are now demanding proof that Thai shareholders listed in company records genuinely own and participate in the businesses.

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Using artificial intelligence and cross-checking government databases, officials have identified around 50,000 foreign-linked companies for closer examination.

The investigation is focused on popular tourist destinations and business hubs where nominee arrangements have become common.

Legal Firms Report Surge in Requests for Help

The government’s enforcement campaign has triggered concern among foreign business owners and property investors.

Legal firms across Thailand say they are receiving a flood of inquiries from foreigners worried that their businesses, land, or investments could be seized if found to be operating through illegal nominee structures.

Brian Ramsden, General Manager of Foreign Affairs at Lawyers for Expats Thailand, said his firm has received more than 100 calls per day from concerned clients.

According to Ramsden, many business owners admit they knew the arrangements were questionable but relied on advice suggesting the structures would not be challenged.

He noted that inactive companies and businesses without genuine operations often attract regulatory attention.

Government Vows Strong Enforcement

Prime Minister Anutin Charnvirakul has become one of the strongest advocates for stricter enforcement.

During visits to southern tourist destinations, he pledged action against illegal businesses and shell companies used to conceal foreign ownership.

Authorities are also concerned that some nominee structures may facilitate cybercrime operations and other criminal activities in Southeast Asia.

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Anutin said cases involving individuals listed as shareholders in hundreds of companies clearly violate the spirit of Thailand’s ownership laws.

Officials believe such arrangements could lead to criminal prosecutions.

Arrests and Asset Seizures

The crackdown is already producing results.

Authorities recently referred 28 foreign suspects to prosecutors following investigations in Phuket and Surat Thani provinces.

In Koh Phangan, officials confiscated 30 plots of land valued at approximately 150 million baht, or about $4.5 million. Authorities also arrested two Thai nationals allegedly linked to illegal company structures.

Government audits have also revealed extensive foreign involvement in businesses across tourist islands such as Koh Samui and Koh Phangan.

While foreign participation alone does not indicate wrongdoing, officials are reviewing ownership records to identify violations.

Local Businesses Welcome the Crackdown

Some Thai business owners argue that foreign-controlled businesses have created unfair competition.

They claim foreign investors often develop villas and short-term rental properties that drive up prices beyond the reach of local entrepreneurs.

Business leaders say the situation makes it harder for Thai citizens to compete in key sectors such as tourism, hospitality, and real estate.

Supporters of the crackdown believe stricter enforcement will create a more balanced business environment and protect local economic opportunities.

Foreign Investors Seek Legal Certainty

At the same time, the enforcement campaign has created uncertainty among legitimate foreign investors.

Property owners and business operators worry that they could become targets even if they acted in good faith.

Investment specialists say many foreign clients are now seeking fully legal and sustainable ownership structures that comply with Thai regulations.

Experts warn that Thailand must balance enforcement with investor confidence to avoid damaging its reputation as an attractive destination for international business.

Across major investment centres such as Bangkok, Phuket, and Pattaya, foreign investors are increasingly reviewing their business arrangements to ensure compliance with the law.