A British national already under investigation in Phuket regarding a high-profile doctor's death case is now facing additional charges for allegedly operating an illegal nominee business.

According to reports from The Phuket News, authorities have expanded their scrutiny of the individual to include their corporate structures. The new charges indicate that police believe Thai citizens were used as proxy shareholders to bypass foreign ownership restrictions.

While the specific details of this individual's company structure remain under active investigation, the escalation highlights a common pattern in Thai law enforcement: when a foreign national attracts police attention for an unrelated matter, their visas, taxes, and business structures are often subjected to immediate audits.

What this means for you

Thailand has strict rules under the Foreign Business Act regarding how expats can operate companies. If you run a business in Thailand, this case is a reminder to review your corporate compliance.

• Genuine investment is required: Foreigners cannot use Thai citizens as "nominee" shareholders—meaning Thais who hold shares on paper but have not invested their own capital and have no actual voting power.
• Penalties are severe: Operating a nominee structure is a criminal offense. Both the foreign national and the Thai nominees can face heavy fines and imprisonment.
• Scrutiny is compounding: As seen in this Phuket case, an investigation into a completely separate incident can quickly trigger a deep dive into your business affairs.

Because sourcing on the exact nature of the British national's business is currently limited, it is unclear which specific industry triggered the nominee charges. However, expats relying on "paper" shareholders to maintain a 51% Thai majority should consult a qualified Thai corporate lawyer to ensure their structures reflect genuine partnerships.