Thailand probes 36,000 foreign-linked companies and demands bank records from Thai partners

The Thai government has significantly escalated its crackdown on illegal foreign business ownership. According to the Department of Business Development (DBD), authorities are currently investigating more than 36,000 foreign-linked companies across 16 provinces suspected of using Thai nominees to acquire real estate and operate restricted businesses.

To close the proxy loophole, the DBD has introduced stricter financial transparency rules for joint ventures. Thai authorities now require local partners in companies with foreign co-investors to provide extensive bank records. These statements must demonstrate that the Thai partner has the actual financial capacity to fund their share of the investment, rather than simply acting as a proxy name on paper.

Raids underway in Phuket and Rayong

The enforcement offensive is already active on the ground. Officials from the DBD and the Ministry of Interior have launched on-site inspections targeting the hotel, retail, and wholesale sectors in Rayong, according to Khaosod (in Thai).

Meanwhile, in Phuket, a joint task force led by the Fourth Army Region and Deputy Finance Minister Julapun Amornvivat is actively targeting networks of foreign nationals accused of using proxy arrangements to bypass local labor and business regulations.

What this means for you

If you operate a business or hold property using the standard 51/49 Thai limited company structure, the days of using a silent local partner with zero actual capital are effectively over. As an expat business owner or property investor, here is how you should adjust:

• Check your partner's paper trail: Make sure your Thai partner can legitimately prove the source of their investment funds via historical bank statements. If they cannot, your corporate structure is vulnerable.
• Expect registration delays: Anticipate higher scrutiny and administrative friction when registering new companies or altering shareholder structures, especially in hotspot provinces like Phuket and Rayong.
• Reassess property holding structures: Foreigners using company structures solely to hold land or residential property face a heightened risk of audit. If authorities investigate your setup and the Thai shareholders cannot prove their financial contribution, the company could be dissolved and the assets seized.