The Thai government is accelerating its ongoing crackdown on illegal "grey capital" and nominee business structures, setting a strict September 30 deadline to audit 11,000 companies nationwide.
These targeted firms, which have foreign shareholders and hold an estimated 85 billion baht in property, are undergoing urgent shareholder checks, according to the Thai Examiner. Authorities have already identified approximately 2,100 companies suspected of using illegal nominee structures to bypass foreign ownership laws, reports Nation Thailand.
The enforcement is part of a broader, cumulative campaign that has resulted in the seizure of over 20 billion baht in assets, according to government spokespeople cited by Khaosod (in Thai).
The scrutiny is expanding across multiple fronts. The Department of Special Investigation (DSI) has officially upgraded its probe into Pattaya-based nominee companies to a "special case" to protect economic security. Meanwhile, the government is reviewing citizenship records to catch naturalized citizens acting as nominees for foreign-owned businesses.
Patience at the top is wearing thin. Deputy Prime Minister Anutin Charnvirakul has ordered provincial governors to immediately deport foreigners who break Thai laws or operate businesses that exploit Thai nationals.
What this means for you
If you own property or a business through a Thai limited company, the era of lax enforcement is over. The practice of using "nominee" Thai shareholders—individuals who hold shares on paper but have no actual financial stake or voting power—is illegal and is the primary target of these audits.
- Review your structure: Ensure your Thai shareholders are legitimate investors with a verifiable financial stake and active role in the company.
- Prepare for audits: If your company holds land or property, expect intense scrutiny. Ensure your financial records, shareholder agreements, and tax filings accurately reflect the actual flow of capital.
- Seek legal counsel: If you are unsure about your company's compliance, consult a qualified Thai corporate lawyer immediately, especially with the September 30 deadline approaching.
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