Thailand’s crackdown on illegal foreign business ownership has reached the southern islands, with the Ministry of Commerce raiding five locations across Koh Samui and Koh Phangan.
The raids, which took place on July 10, 2026, targeted a suspected Chinese-backed investment network. According to the Department of Business Development (in Thai), investigators discovered more than 100 companies registered to a single address. The operation is part of a widening probe into "nominee" structures—where Thai citizens are paid to hold majority shares on behalf of foreign owners to bypass the Foreign Business Act (FBA).
The sweep is not limited to the Gulf islands. In Phuket, the Department of Special Investigation (DSI) recently arrested a foreign suspect linked to a luxury villa nominee scheme, according to The Phuket News. Meanwhile, Nation Thailand reports that two unlicensed hotels were identified in Phuket, bringing the nationwide total to 391 firms currently under investigation for suspected nominee violations.
What this means for you
If you operate a business or own property through a Thai company structure, the era of authorities looking the other way is rapidly closing.
- Audit your company structure: If your business relies on Thai shareholders who have no actual financial stake or voting power in the company, you are at high risk of investigation.
- Expect property scrutiny: The recent raids specifically targeted luxury villa empires. Foreigners using Thai companies to hold land must ensure their Thai partners are legitimate investors with verifiable sources of funds.
- Check your licenses: The Phuket raids highlighted unlicensed hotels. Ensure all your operational permits are current and legally obtained.
While legitimate joint ventures with genuine Thai partners remain perfectly legal, the use of shell companies and proxy shareholders is drawing unprecedented legal fire. Expats relying on legacy nominee structures should consult qualified legal counsel to regularize their holdings before facing an audit.
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