DSI summons Phuket MP over foreign nominee links as nationwide business crackdown hits Surat Thani and Isaan

The Department of Special Investigation (DSI) is summoning a Phuket MP for a second time regarding their involvement in foreign nominee business structures, according to Krungthep Turakij (in Thai). This August 31 development marks a sharp escalation in Thailand's ongoing crackdown on illegal company setups, proving that authorities are now targeting the highest levels of local facilitation.

The scrutiny extends far beyond Phuket. On August 29, officials raided the 577CLUB in Bangkok's Huai Khwang district for the second time, specifically probing hidden foreign ownership and drug links. Meanwhile, the Interior Ministry has launched investigations into land ownership and business structures in Surat Thani, and regional authorities in Isaan (Northeast Thailand) have been formally ordered to intensify inspections of suspected nominee companies.

What this means for your Thai company

If you operate a Thai limited company to hold property or run a business, the era of turning a blind eye to "paper shareholders" is ending. A nominee structure—where a Thai national holds 51% of the shares but contributes no capital and exercises no voting power—is strictly illegal under the Foreign Business Act.

To protect your assets and legal status in Thailand, take these concrete steps:

• Audit your shareholder structure: Ensure your Thai partners have a documented financial trail proving they actually paid for their shares with their own funds.
• Review voting rights: Corporate structures that strip Thai majority shareholders of all voting power or dividend rights are prime targets for DSI audits.
• Prepare for inspections: Businesses in tourism hotspots like Phuket, Surat Thani, and Pattaya, as well as entertainment districts in Bangkok, are currently facing the highest scrutiny.

The recent raids and political summonses show this is no longer just a localized police effort. With the DSI and Interior Ministry coordinating across multiple provinces, expats relying on legally grey company structures should consult a qualified Thai corporate lawyer immediately to regularize their affairs.