The ongoing nationwide crackdown on foreign-owned companies using Thai proxy shareholders is showing measurable results. According to the Commerce Ministry, the past eight months of enforcement have led to a more than 65% drop in businesses flagged as being at risk of using nominees.

This data, reported by Thai Newsroom, marks the latest development in a sustained campaign by authorities to enforce the Foreign Business Act. As we reported previously, the government is not slowing down, with a new wave of "tough measures" officially scheduled to launch this August.

What this means for you

If you operate a company in Thailand, the 65% drop is a clear signal that the Commerce Ministry's scrutiny is actively forcing structural changes or closures among foreign-run businesses. The practice of using a Thai friend or agency-provided proxy to hold 51% of company shares is facing unprecedented pressure.

Here is what expat business owners should be reviewing ahead of the August rollout:

• Shareholder legitimacy: Ensure your Thai partners are genuine investors with verifiable financial contributions and active roles in the company.
• Paperwork readiness: Expect increased requests for financial trails and shareholder bank statements when renewing licenses or filing annual reports.
• Legal restructuring: If your current setup relies on passive Thai nominees, consult a qualified corporate lawyer to explore legal alternatives, such as applying for a Foreign Business License or Board of Investment (BOI) promotion.

With the August deadline for new enforcement measures approaching, the window to ensure your corporate structure is fully compliant is closing. We will continue to monitor the specific regulations expected to roll out late this summer.