On July 8, the Department of Special Investigation (DSI) apprehended a foreign national in Phuket accused of using Thai nominees to illegally operate a luxury villa rental business.
The raid serves as the latest strike in a rapidly expanding nationwide sweep against illegal proxy structures. Just days earlier, authorities flagged 33 suspected nominee firms across five tourist provinces. In a parallel operation, police raided luxury pool villas in Pattaya linked to a Chinese nominee probe.
The political climate surrounding foreign business ownership is hardening. According to the Thai Examiner, foreign nominee firms are increasingly blamed for poor economic growth, ensuring political pressure to enforce these rules remains high.
What this means for you
If you run a business or hold property in Thailand through a Thai company, the scrutiny is intensifying. The Department of Business Development (DBD) has now joined forces with the Revenue Department to investigate illegal business structures.
Expats relying on local proxies to bypass the Foreign Business Act should take immediate note of the changing enforcement landscape:
- Review your shareholder structure: Ensure your Thai partners are legitimate investors with verifiable funding and active involvement, not just names on paper.
- Prepare for audits: Joint DBD and Revenue Department task forces are actively cross-checking tax filings, financial trails, and daily business operations.
- Avoid "ready-made" proxy companies: Using local nominees to hold land or operate restricted businesses is illegal and increasingly likely to result in asset seizure or arrest.
While the current raids heavily target large-scale tourism and real estate operations, the precedent is set. The era of authorities turning a blind eye to standard proxy company setups appears to be closing.
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