Thai authorities investigate 360 companies and arrest four in Phuket foreign nominee crackdown

Thai authorities have launched a sweeping crackdown on illegal foreign businesses in Phuket, uncovering a network of more than 360 companies suspected of using proxy arrangements to bypass foreign ownership laws.

The enforcement action, announced in mid-October 2026, specifically targets networks of Chinese and Myanmar nationals accused of utilizing nominee structures. According to Thai Times, the investigation has already led to the arrest of four suspects accused of operating an illegal network of international schools through these foreign nominee arrangements.

This large-scale probe signals a renewed and aggressive focus by local officials on enforcing the Foreign Business Act, which restricts foreigners from holding majority ownership in certain Thai companies.

What this means for you

If you operate a business or hold property through a Thai company, this crackdown is a clear warning that authorities are actively scrutinizing shareholder structures. The days of relying on passive Thai nominees to hold 51 percent of a company's shares without genuine financial involvement are increasingly risky.

Expat business owners and property investors should take immediate steps to ensure their corporate structures are compliant:

• Review your shareholder agreements: Ensure that all Thai shareholders have a legitimate, documented financial stake and an active role in the company.
• Audit your paper trail: Authorities often check the financial trails of Thai partners to confirm they actually paid for their shares and receive appropriate dividends.
• Consult legal counsel: If your business relies on a structure where Thai partners have no real involvement, speak with a qualified corporate lawyer to restructure legally, potentially by applying for a Foreign Business License or Board of Investment (BOI) promotion.

While the current raids in Phuket have focused heavily on specific national networks and an international school operation, the precedent affects all expatriate business owners. Expect increased scrutiny on company registrations and annual renewals across the country.