More than 14,800 tax probes, 17,556 land investigations and thousands of police cases reveal the sheer scale of Thailand’s campaign against suspected nominee companies, signalling a fundamental change in how foreign-owned businesses are monitored.
Thailand’s crackdown on foreign nominee shareholding has become a full-scale economic enforcement campaign, with 23 agencies, thousands of tax, land and police investigations, and new registration checks cutting high-risk company formations by more than 65%. However, foreign investors warn the widening offensive is also raising costs, delaying deals and unsettling compliant businesses in key tourism and property markets.
The Thai government on Saturday intensified its campaign against nominee shareholding structures, declaring they remain one of the country’s most serious economic threats. The Department of Business Development (DBD) said stronger enforcement is already delivering results. However, the announcement comes as concern grows among foreign investors over the scope of the crackdown.
The Ministry of Commerce issued a detailed statement defending its strategy against foreign investors who use Thai nationals as nominee shareholders. Officials said the practice distorts competition, damages legitimate businesses and weakens the wider economy.
They insisted the campaign targets illegal ownership structures rather than genuine foreign investment. Nevertheless, many overseas investors fear the widening investigations could also affect compliant businesses.
Government makes nominee crackdown a central economic priority as enforcement widens nationwide
Since Prime Minister Anutin Charnvirakul assumed office last September, nominee companies have become a central focus of government policy. Ministers argue the problem extends well beyond company registration.
Instead, they believe nominee arrangements have become embedded across key sectors of the economy, particularly tourism, property development and related services. Consequently, enforcement has expanded rapidly across multiple government agencies.
The government’s position is straightforward. Officials believe illegal nominee structures allow foreign investors to bypass restrictions imposed under the Foreign Business Act. As a result, companies can enter business sectors reserved for Thai ownership while avoiding the law’s intended safeguards. Ministers argue this undermines fair competition and disadvantages businesses operating legally.
The latest statement follows months of increasingly visible enforcement. Police raids, regulatory inspections and corporate investigations have become more common in several provinces. In response, foreign-owned businesses have sought greater legal advice as officials scrutinise ownership structures more closely. Lawyers report growing demand for compliance reviews, corporate restructuring and alternative investment models.
Investors warn tougher nominee enforcement is increasing uncertainty and rising compliance costs
Business groups broadly accept Thailand’s right to enforce the Foreign Business Act. The legislation prohibits foreigners from using Thai nationals as nominee shareholders in businesses reserved for local ownership.
However, many expatriate entrepreneurs say enforcement has become increasingly unpredictable. They fear companies with genuine Thai partners could still face prolonged investigations if officials question shareholder finances or corporate control.
Administrative requirements have also become more demanding. Thai shareholders are now increasingly expected to prove the source of investment funds through bank records and supporting financial documents. Officials argue the new requirements help distinguish genuine investors from sham shareholders. Even so, businesses complain that the process often delays legitimate transactions and increases compliance costs.
Property and tourism businesses have become particular targets. Foreign investors involved in hotels, restaurants, villas and tourism services say inspections have become noticeably more intensive. Phuket, Koh Samui and Koh Phangan have attracted particular attention as investigations expand. Consequently, some investors worry that uncertainty could discourage future investment decisions despite full legal compliance.
Ministry insists lawful foreign investment remains welcome despite widening investigations into nominees
International legal advisers, however, draw an important distinction. They note the government continues encouraging overseas investment through established legal mechanisms. Investors remain eligible for Board of Investment incentives, Foreign Business Licences and sectors permitting full foreign ownership. Officials have also suggested that some restrictions could eventually be reviewed while enforcement remains focused on unlawful nominee arrangements.
Against that backdrop, the Department of Business Development sought to explain why the campaign has intensified. Officials described nominee ownership as a long-standing structural problem rather than a recent development.
According to the ministry, previous administrations failed to address the issue with sufficient determination. Consequently, thousands of high-risk corporate structures accumulated over several decades.
The figures illustrate the scale of that growth. Authorities identified just 523 high-risk nominee entities in 1998. By 2008, that figure had climbed to 2,041 companies. A decade later, it reached 5,143 before rising again to 11,746 during 2025. Overall, the cumulative number of legal entities with foreign investment between 0.01% and 49.99% reached 119,297 by June 21 this year.
Rising nominee numbers over three decades prompted tougher scrutiny and sweeping government intervention
Officials stress that those figures do not automatically indicate illegality. Instead, they identify companies requiring closer scrutiny because nominee arrangements frequently appear within similar ownership structures. Many businesses within that category operate entirely lawfully. Nevertheless, the government believes closer monitoring remains essential to detect abuses before they become entrenched.
The ministry argues recent enforcement has finally begun reversing earlier trends. Between January 1 and May 31 this year, newly identified high-risk nominee companies fell by 65% compared with the same period last year.
Officials credited the reduction directly to measures introduced under Prime Minister Anutin and Deputy Prime Minister and Commerce Minister Suphajee Suthumpun. According to the department, both ministers made nominee suppression an immediate policy priority.
The Prime Minister also issued explicit instructions to the Ministry of Commerce. His directive ordered officials to tighten supervision of business registrations involving foreign entrepreneurs. At the same time, he instructed departments to examine whether amendments to foreign business laws remain necessary. The government reproduced the instruction in full within Saturday’s statement.
Prime Minister orders stricter business registration checks and review of foreign ownership legislation
“The Ministry of Commerce should strictly monitor and regulate the registration of businesses by foreign entrepreneurs to prevent nominee arrangements. Furthermore, it should consider the necessity and appropriateness of amending laws and regulations related to foreign business operations.”
In response, the Department of Business Development fundamentally strengthened its registration procedures. Officials introduced enhanced pre-registration screening for companies involving foreign shareholders or directors. Separately, the department issued five registrar’s orders and two official announcements designed to identify nominee structures before registration is completed. The ministry says these changes have significantly reduced the number of high-risk companies entering the system.
The statistics released on Saturday support that claim. Between January and March 2025, authorities identified 3,618 high-risk nominee companies. During the corresponding period this year, the figure fell to 1,771. Accordingly, officials calculated a reduction of just over 51% following implementation of the new registration measures.
The government then tightened the rules again. On April 1, the Department of Business Development introduced mandatory investment confirmation requirements for registered legal entities. Companies must now provide stronger evidence supporting shareholder investments. Officials believe the additional verification makes it considerably harder to conceal nominee arrangements through artificial ownership structures.
Tougher registration rules and investment checks sharply reduce new high-risk nominee registrations
Notably, the latest figures show another significant decline. During the first five months of 2025, authorities identified 2,102 high-risk nominee companies. During the same period this year, that number fell to only 731. The ministry calculated the reduction at 65.22%, describing it as evidence that progressively tighter registration procedures are producing tangible results.
As part of this strategy, officials are preparing another package of reforms. Additional registration measures are scheduled to take effect on August 1. The Department of Business Development is currently consulting businesses and other stakeholders before introducing the changes. Ministers say the objective is to eliminate much of the remaining high-risk nominee activity while maintaining support for legitimate foreign investors operating within Thai law.
Registration reforms represent only one element of a much broader enforcement strategy. In parallel, authorities have substantially expanded investigations into companies already considered suspicious. Information gathered during registration screening is now routinely shared with specialist enforcement agencies for further examination. That integrated approach has become a defining feature of the government’s campaign.
Beyond company registration, the government’s campaign has widened into one of Thailand’s largest coordinated corporate enforcement exercises. Multiple agencies are now examining taxation, land ownership, financial transactions and company structures simultaneously. Officials argue the broader approach prevents suspected nominee companies from exploiting gaps between individual departments.
Broader nominee crackdown through coordinated investigations by tax, police and state agencies
The Department of Business Development said information gathered during preliminary screening is now routinely forwarded to specialist agencies for legal action. Each organisation examines potential offences within its own jurisdiction.
Consequently, investigations no longer end with questions over company registration alone. Instead, they extend into taxation, property ownership and suspected economic crime.
The Revenue Department is currently investigating 14,800 tax cases linked to suspected nominee businesses. Meanwhile, the Land Department is examining 17,556 property holdings associated with companies under scrutiny. Those investigations seek to establish whether ownership structures comply with Thai law and whether transactions accurately reflect beneficial ownership.
On another front, police investigations continue expanding. The Royal Thai Police’s special task force is conducting in-depth investigations into 2,713 cases. Separately, the Economic Crime Suppression Division is pursuing legal proceedings involving 2,257 suspected legal entities. The Department of Special Investigation is simultaneously handling another 2,236 special cases.
Collectively, the figures demonstrate the scale of the government’s enforcement campaign. Rather than relying on a single regulator, authorities have mobilised tax investigators, police, economic crime specialists and land officials. The Ministry of Commerce argues that integrated enforcement produces faster results while reducing opportunities for companies to conceal unlawful ownership.
Coordinated inspections target high-risk sectors and provinces with significant foreign activity
Field inspections have also intensified. Between October 1, 2025, and June 23 this year, officials carried out coordinated operations across 35 locations in 11 provinces. Those inspections involved multiple government agencies working together. According to the ministry, the objective was to identify businesses presenting the highest nominee risk.
The operations covered Surat Thani, Phuket, Krabi, Chonburi, Samut Prakan, Chiang Mai, Ratchaburi, Samut Sakhon, Samut Songkhram, Tak and Bangkok. Several of those provinces are major tourism or investment centres. Consequently, enforcement has become particularly visible in areas with significant foreign commercial activity.
Investigators focused on industries considered especially vulnerable to nominee ownership. These included accounting firms, law firms, villa developments, construction companies and foreign-owned trading businesses. They also examined steel traders, tourism operators, travel agencies, co-working spaces, industrial factories, coconut processing plants and restaurants. Officials believe those sectors attract substantial foreign capital while remaining exposed to ownership abuses.
The Department of Business Development also released updated figures on Thailand’s corporate landscape. As of June 23, the country had 1,002,685 active legal entities. Those comprised 200,100 limited partnerships, 801,070 limited companies and 1,515 public limited companies. Of the limited companies, 119,297 involved foreign investment between 0.01% and 49.99%.
Officials say sophisticated nominee schemes require technology and cross-agency intelligence sharing
Officials emphasised that those companies should not automatically be viewed with suspicion. Instead, they said the category reflects shareholding structures requiring closer monitoring because nominee arrangements frequently occur within that ownership range.
Many businesses operate entirely within the law. Nevertheless, regulators believe closer scrutiny remains necessary to identify unlawful structures before they expand.
The ministry argues that previous governments did not devote sufficient attention to the nominee issue. As a result, increasingly sophisticated ownership structures developed over many years. Officials believe those arrangements gradually became embedded across several sectors of the economy. Consequently, today’s investigations involve corporate structures that are often considerably more complex than earlier nominee models.
Modern nominee schemes, the ministry said, increasingly employ sophisticated methods to avoid government detection. Therefore, traditional registration checks alone are no longer considered sufficient. Officials argue that technology, integrated databases and cross-agency intelligence sharing have become essential enforcement tools. The latest strategy reflects that broader approach.
In response, the Ministry of Commerce has placed greater emphasis on information sharing. On April 29, it signed a Memorandum of Understanding with 23 government organisations at Government House. The initiative operates under the theme “Healing Economic Cracks, Combating Nominees.” According to officials, the agreement represents a fundamental change in how nominee investigations are conducted.
Twenty-three agencies join forces to integrate data and strengthen nationwide nominee enforcement
The framework rests on three principal objectives. First, agencies will integrate government databases. Second, they will coordinate investigations and prosecutions across departments. Third, they will strengthen confidence among legitimate businesses through more consistent enforcement. Ministers believe the combined approach will expose unlawful ownership structures more quickly than isolated investigations.
As part of this strategy, agencies now exchange corporate, financial and regulatory information far more extensively than before.
Officials say integrated databases allow suspicious ownership patterns to emerge much earlier. They also reduce opportunities for companies to exploit gaps between government departments. Consequently, investigations can progress more rapidly once concerns arise.
Even so, the Ministry of Commerce acknowledges that enforcement alone cannot eliminate nominee structures. Officials argue that cooperation from accountants, lawyers, professional advisers and investors remains equally important.
They believe foreign investors should receive clearer guidance on lawful ownership models before establishing businesses. That approach, the ministry says, complements stronger enforcement rather than replacing it.
Investors face scrutiny as the government seeks a balance between enforcement and legal investment
Officials also maintain the campaign should not be interpreted as opposition to foreign investment. Instead, they continue distinguishing between unlawful nominee arrangements and legitimate overseas capital entering Thailand through approved legal channels. The ministry says foreign investment remains important to economic development when conducted within the law.
That distinction has become increasingly important as overseas investors assess the expanding investigations. While many support action against illegal operators, others fear compliant businesses may face prolonged inquiries.
Lawyers report rising concern among clients whose ownership structures include genuine Thai shareholders. Those businesses worry that investigators may still question shareholder finances or effective corporate control.
Administrative compliance has also become more demanding. Thai shareholders are increasingly expected to produce bank records and financial evidence confirming the source of investment funds. Officials argue the requirement helps distinguish genuine investors from nominees. However, businesses say the additional documentation has increased costs and delayed some commercial transactions.
The property and tourism sectors remain particularly sensitive. Foreign investors operating hotels, restaurants, villas and tourism businesses report heightened regulatory scrutiny. Phuket, Koh Samui and Koh Phangan have attracted sustained enforcement activity. Consequently, some investors believe regulatory uncertainty could influence future investment decisions in those markets.
Business groups remain divided as tougher nominee enforcement reshapes Thailand’s investment climate
Business opinion, therefore, remains divided. Companies operating through fully compliant ownership structures generally welcome stronger enforcement. They argue businesses using unlawful nominee arrangements enjoy unfair commercial advantages while avoiding restrictions imposed on legitimate investors. Removing those operators, they contend, creates a more level competitive environment.
Others, however, caution that enforcement must remain transparent, predictable and proportionate. They argue legitimate businesses require regulatory certainty when making long-term investment decisions. Lengthy investigations involving compliant companies could weaken confidence even if no offences are ultimately established. Consequently, many advisers are encouraging clients to review ownership structures before regulators raise questions.
The government insists it recognises those concerns. Officials say consultations are continuing before the next package of registration measures takes effect on August 1. According to the Department of Business Development, the objective is to strike an appropriate balance between stronger enforcement and continued support for lawful foreign investment. The ministry says both goals remain compatible.
Looking ahead, officials expect technology to play an even greater role. Integrated databases, enhanced screening systems and coordinated monitoring will continue expanding. The ministry believes those tools will improve the identification of high-risk companies while reducing unnecessary scrutiny of compliant businesses. That process forms a central part of the government’s longer-term enforcement strategy.
Ministry vows relentless enforcement as wider crackdown targets illegal nominee ownership
The Department of Business Development concluded Saturday’s statement with an unequivocal warning. It said rigorous investigations would continue wherever Thai nationals are used as nominees or where companies conceal unlawful foreign ownership.
Officials pledged decisive legal action against everyone involved in illegal arrangements. At the same time, proactive screening will continue expanding to prevent legal entities from being used to disguise foreign control.
Huai Khwang raid shows nominee shareholdings being used by Chinese infiltrating the economy
Blitzkrieg on foreign firms and enterprises on Koh Phangan continues with French owned resort busted
The ministry said the campaign is intended to protect Thailand’s economic interests, preserve fair competition and strengthen long-term economic stability.
Breaking the long-standing cycle of nominee ownership, officials argued, remains one of the government’s foremost economic priorities. The latest figures, they said, demonstrate that the campaign is becoming broader, more coordinated and increasingly difficult for illegal operators to evade.
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Further reading:
Huai Khwang raid shows nominee shareholdings being used by Chinese infiltrating the economy
Sweep of nominee firms and business networks on Koh Phangan. 22 arrested, 200 million in land seized
Anutin visits Koh Phangan as nominee crackdown shows 68% of firms with foreign ownership links
Blitzkrieg on foreign firms and enterprises on Koh Phangan continues with French owned resort busted
Russian-Chinese Koh Phangan alliance to sell drugs to foreigners. Accused entered Thailand illegally
Crackdown aimed at upending foreign business trade moves from Koh Phangan to Phuket. Four arrested
