Parliament proposes harsher nominee penalties after Pattaya inspection reveals registration backlog

The ongoing crackdown on illegal foreign business nominees has reached Pattaya, with a parliamentary committee stepping in to investigate local company registrations and push for harsher legal penalties.

This latest development follows our previous report on orders to deport foreign lawbreakers amid an 85-billion-baht nationwide nominee probe. The investigative focus has now clearly expanded to the eastern seaboard.

According to a September 18 report from Thairath (in Thai), the Parliamentary Foreign Affairs Committee visited Pattaya to inspect the nominee problem firsthand. They uncovered a significant administrative bottleneck: the local Commerce Ministry office in the area is processing over 6,000 company registrations per month with a staff of only six people.

In response to these findings, the committee is proposing legal amendments to increase the penalties for operating illegal foreign businesses.

What this means for expats and business owners

If you live or operate a business in the Pattaya area, here is how this update affects you:

• Increased local scrutiny: Expect heightened checks on shareholder structures and business activities for Thai limited companies in Chonburi province.
• Registration delays: With only six staff members handling thousands of applications monthly at the local office, legitimate expats setting up businesses in Pattaya should anticipate administrative delays.
• Harsher penalties on the horizon: The push for amended laws means the consequences for utilizing Thai nominees to bypass the Foreign Business Act could soon become much more severe.

While the committee has proposed increasing penalties, these legal amendments are not yet in force. However, the physical presence of parliamentary officials in Pattaya signals that the government is actively looking for ways to tighten enforcement on the ground. Ensure your corporate structures are fully compliant with the Foreign Business Act.