Thailand audits 36,277 foreign-held firms as Koh Samui nominee raids escalate

The Thai government has escalated its enforcement of foreign ownership laws, launching a nationwide audit of 36,277 foreign-held companies and raiding 60 suspected nominee businesses on Koh Samui. If you hold Thai property through a corporate structure or long-term lease, the regulatory environment has shifted from passive oversight to active investigation.

According to the Department of Business Development (DBD), officials are currently inspecting companies nationwide that feature foreign investment and hold land title deeds, as reported by Krungthep Turakij. The Ministry of Commerce has identified 16 high-risk provinces where authorities are actively screening for illegal Thai nominee structures, according to Prachachat Turakij.

Arrests in Koh Samui and Hua Hin

The nationwide audit coincides with severe enforcement actions on the ground. On Koh Samui, police and Interior Ministry officials recently uncovered 60 suspected nominee businesses, ranging from unlicensed nurseries to luxury hotels, according to The Thaiger.

This operation resulted in the arrest of 62 foreign nationals linked to 1.5 billion baht in property, as reported by Thansettakij.

The crackdown extends beyond the islands. In Hua Hin, over 200 police officers raided a housing estate, arresting several wealthy expatriates after their Thai nominees surrendered control of the assets to authorities, the Thai Examiner reports.

What this means for you

If you are an expat or relocator using a Thai company to hold land or operate a business, you must ensure your corporate structure complies strictly with the Foreign Business Act.

Authorities are expanding their scrutiny to include:

• Corporate shareholders: Officials are actively checking if Thai partners have legitimate financial involvement or if they are merely paid proxies.
• Long-term leases: The investigation on Koh Samui and Koh Phangan now includes the scrutiny of 30-year land lease agreements, according to the Thai Examiner.
• Booking platforms: Ministers are using international hotel reservation systems to identify and shut down unlicensed, foreign-operated resorts specifically on Koh Phangan, the Thai Examiner reports.

Foreigners caught in these sweeps have claimed they were advised into these structures by local law firms, according to The Thaiger. However, this defense has not prevented arrests or asset seizures. If your property ownership relies on a nominee structure, you should consult independent legal counsel immediately to review your exposure.