PATTAYA, Thailand – The Department of Business Development (DBD), under Thailand’s Ministry of Commerce, has launched a major crackdown on nominee operations on Koh Phangan, uncovering suspicious activities in accounting and real estate businesses allegedly using Thai nationals as proxy shareholders for foreigners.
DBD Director-General Poonpong Naiyanapakorn revealed that on October 21, Deputy Director-General ML Phoothong Thongyai led a joint operation with local law enforcement and provincial task forces to inspect four targeted locations across the island. The team investigated violations of the Foreign Business Act B.E. 2542, aiming to ensure business transparency and protect Thai economic interests.
Authorities uncovered potential nominee structures in two sectors on Koh Phangan:
- Accounting services — Investigators found a single individual listed as a shareholder in dozens of companies. Several commercial buildings linked to these entities housed many registered companies, with some showing no signs of actual business activity. Officials seized documents and computers to verify whether Thai nationals were acting as fronts for foreign-owned operations.
- Real estate — A luxury villa project renting to foreign tourists without a hotel license was flagged. The property, valued at over 150 million baht, was registered under Thai firms but included significant foreign ownership. Authorities are examining possible nominee arrangements and tax avoidance, as well as compliance with laws restricting foreign ownership of land.
Authorities have summoned project representatives and six foreign tourists for questioning. Evidence collected will be forwarded to police investigators, and related entities will undergo further scrutiny.
Poonpong stressed that foreigners are strictly prohibited from owning or operating real estate trading businesses in Thailand. Any foreign involvement in leasing or property brokerage must receive prior approval from the DBD’s director-general and the Foreign Business Committee.
“This operation is part of our ongoing nationwide effort to eliminate nominee structures that distort fair competition and undermine Thai entrepreneurs,” Poonpong said. “We are working closely with the Tourist Police, Immigration Bureau, Revenue Department, and Land Office to ensure a transparent and equitable business environment.”
Earlier in July 2025, DBD inspections in Surat Thani — identified as the country’s second-highest-risk province for nominee activity — revealed five Thai shareholders (one company and four individuals) listed in 256 companies, with over 100 registered at duplicate addresses in Koh Phangan. Authorities believe many of these firms may serve as shells for concealed foreign ownership.
The DBD affirmed it will continue pursuing in-depth investigations and legal action to close loopholes enabling foreigners to illegally control Thai businesses.
