PATTAYA, Thailand – Thailand’s Department of Business Development (DBD) has launched an aggressive nationwide crackdown on suspected foreign nominee business networks operating in key tourist destinations including Pattaya, Phuket, Koh Samui, Koh Phangan, Krabi, Phang Nga, Hua Hin, and Pai, following direct orders from the government to intensify enforcement against illegal foreign-controlled businesses. Poonpong Naiyanapakorn, Director-General of the DBD under the Ministry of Commerce, said the department has been instructed by Prime Minister and Interior Minister Anutin Charnvirakul to act as a lead agency in identifying suspicious company structures and coordinating with other authorities to dismantle nominee networks using Thai nationals as proxy shareholders.
According to the department’s latest review, officials examined 88,236 registered businesses across targeted tourism areas and found foreign shareholding involvement in 45,356 companies. The highest concentration was reported in Banglamung district, which includes Pattaya, where 19,910 businesses out of 33,314 registered entities were found to involve foreign shareholders. Phuket recorded 11,626 foreign-linked firms, while Koh Samui had 8,213. Authorities say investigations will focus on companies that appear to use Thai shareholders as fronts while foreign nationals retain operational control or signing authority. Officials are also examining cases where the same Thai individuals repeatedly appear as shareholders or directors across multiple companies in patterns considered suspicious. Businesses found violating Thailand’s Foreign Business Act could face penalties of up to three years in prison and fines ranging from 300,000 to 1 million baht.
The department also plans to tighten registration rules further by requiring registrars to verify the financial backgrounds and actual investment contributions of Thai shareholders in higher-risk companies. Applications may be rejected immediately if no genuine investment activity is found.
Officials say earlier anti-nominee measures introduced in January and April 2026 have already reduced high-risk company registrations by around 75%, but authorities now aim to eliminate the remaining networks entirely.
