KRABI, Thailand – The Department of Business Development (DBD) has intensified enforcement against nominee business practices after an inspection in Krabi province uncovered an indoor cannabis cultivation operation with concealed foreign ownership. The operation targeted a company based in Sai Thai subdistrict, following concerns over unlawful shareholding arrangements.
Authorities found that the company was registered in late March 2023 with Thai nationals listed as shareholders. Its structure was later altered to include an Israeli national as a director and co-shareholder, alongside an increase in registered capital from 4 million baht to 6 million baht. The company’s stated activities included the production, sale, export, and processing of controlled herbal products.
Financial records showed revenues exceeding 2.3 million baht and a net profit of about 400,000 baht. Further examination revealed a nominee scheme in which the company initially operated under full Thai ownership before restructuring its shareholding to a 59:41 ratio, giving effective control to foreign interests.
Investigators also identified unusually large cash flows linked to a law firm in Krabi that allegedly assisted foreign nationals. Transactions through the firm’s bank account exceeded 40 million baht. Authorities are now expanding the probe to review additional accounts and related companies within the network.
The DBD said it will continue strict action against nominee businesses, warning that such practices undermine fair competition and harm Thai entrepreneurs. Officials added that legal proceedings will be pursued against all parties involved, including Thai nationals who facilitate unlawful activities for foreign interests. (NNT)
