Thai authorities have launched a coordinated, nationwide crackdown on illegal nominee businesses, resulting in 48 arrests in the southern provinces and the inspection of 112 foreign-owned restaurants in Bangkok. The sweeps, which took place over the past week, mark a significant escalation in the government's enforcement of foreign ownership laws.
According to the Bangkok Post, the 48 arrests in the south are part of a broader blitz targeting proxy networks in the Andaman provinces. The enforcement wave has also reached the capital, where authorities inspected 112 foreign-owned restaurants, with the Pattaya Mail noting that the probe has intensified in Bangkok's Huai Khwang district.
The crackdown is not limited to the south and Bangkok. In the north, a joint task force has initiated investigations into nominee businesses and hotel compliance within Chiang Mai's travel sector. The stakes were further highlighted on June 17, when the governor of Phuket was removed from his post amid new investigations into foreign land holdings, according to The Phuket News. A British businessman was also arrested earlier in the week in connection with a nominee company, as reported by MSN.
What this means for you
Under the Foreign Business Act, foreigners are restricted from operating certain businesses or owning land in their own name. For years, a common workaround has been the "nominee company," where Thai nationals hold a 51 percent stake on paper but have no actual financial involvement or voting power.
This enforcement wave signals that authorities are actively dismantling these structures. If you are an expat or foreign investor using a nominee company to hold property, operate a restaurant, or run a tourism business, your corporate structure is now under intense scrutiny. The crackdown is already impacting the property market in Phuket and small foreign investors, according to the Thai Examiner.
To protect yourself and your assets, you should take the following steps:
- Review your company structure: Ensure that any Thai shareholders in your business are legitimate partners who have contributed actual capital and hold genuine voting rights.
- Audit your property holdings: If you purchased a villa or land through a Thai company structure, consult with a qualified legal professional to ensure compliance with current interpretations of the law.
- Prepare documentation: Ensure your financial records, shareholder agreements, and tax filings are transparent and readily available in the event of an inspection.
While the law itself has not changed, the enforcement environment has shifted dramatically. Relying on outdated advice or proxy corporate structures is increasingly risky.
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