Just weeks after a parliamentary push to investigate foreign nominee businesses in Phuket, Surat Thani, and Bangkok, Thai authorities have moved from warnings to coordinated raids.
In a sweeping operation across the Andaman provinces, police have arrested 48 suspects and exposed roughly 1 billion baht in illegally held assets, according to The Phuket News.
The arrests in Krabi included 27 Thai nationals acting as proxies, alongside foreign buyers including Israeli, Polish, Swiss, and South African nationals, The Phuket Express reports.
The nationwide sweep expands
Meanwhile, the Department of Business Development (DBD) has expanded its net. The Commerce Ministry is now taking action against 140 'grey' accounting firms suspected of facilitating these illegal structures nationwide, according to Nation Thailand.
In Bangkok, the crackdown has zeroed in on the Huai Khwang district, where authorities recently inspected 112 foreign-owned restaurants, according to the Chiang Rai Times. The DBD is also probing the shareholder structures of Chinese-linked delivery apps like Gokoo, Feixiang, and E-Gets to prevent nominee takeovers.
In Phuket, the scrutiny is extending beyond corporate registrations to physical land use. The Department of Special Investigation (DSI) is preparing to examine 317 companies holding land in the province, with the Deputy Interior Minister warning of demolitions for illegal encroachments by July or August (in Thai, Khaosod).
What this means for you
If you operate a business or hold property in Thailand through a Thai limited company, the era of turning a blind eye to 'dummy' shareholders is over.
Here is what foreign investors and property owners need to review immediately:
- Shareholder legitimacy: Thai partners must be genuine investors with verifiable proof of funds. Using a Thai citizen solely to meet the 51% local ownership requirement is illegal and is actively resulting in arrests.
- Accounting firm audits: With 140 accounting firms currently facing legal action, ensure your corporate service provider is fully compliant and not under investigation.
- Property structures: If you purchased a villa using a company structure, review your setup with independent legal counsel. Authorities are actively seizing assets tied to nominee networks.
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