Bangkok: The Department of Business Development has intensified its investigation into three Chinese-owned food delivery and service platforms operating in Thailand. The examination focuses on their shareholder structure, sources of investment, management authority, and business licenses to ascertain if Thai nationals are being used as nominees. The department assures that fairness will prevail for all involved parties and any identified wrongdoing will be addressed in accordance with the law.
According to Thai News Agency, Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, stated that coordination with relevant agencies is underway to expedite the investigation into these platforms. The scrutiny follows concerns about their compliance with the Foreign Business Act and other laws governing business operations in Thailand.
Preliminary findings indicate that the platforms under investigation-Gokoo, Feixiang, and E-Gets-are registered as limited liability companies. Gokoo Online Co., Ltd., which provides the Gokoo application, has 80% Thai shareholders, while The Fly Holdings (Thailand) Co., Ltd., which offers the Feixiang application, has 51% Thai shareholders, qualifying them as Thai legal entities. Conversely, E-Gets Technology (Thailand) Co., Ltd., the provider of the E-Gets application, is classified as a foreign legal entity with 90% of its shares held by a Cambodian legal entity.
The Director-General emphasized that the investigation will delve deeper into the sources of investment funds, management authority, company binding agreements, and shareholder relationships to determine if Thai nationals are holding shares on behalf of foreigners. Initial findings have revealed connections between Thai shareholders in some companies and multiple other legal entities, including joint ventures with foreigners.
For entities classified as Thai, the department will investigate potential nominee arrangements that could circumvent restrictions under the Foreign Business Act B.E. 2542 (1999). For foreign entities, the investigation will verify whether necessary business licenses have been obtained as required by law. Violations could result in penalties including imprisonment for up to three years, fines ranging from 100,000 to 1,000,000 baht, or both, along with additional daily fines until the offense ceases.
E-Gets Technology (Thailand) Co., Ltd. has been granted an investment promotion certificate by the BOI for developing a platform to provide digital services, in addition to acquiring a certificate for foreign business operation.
Mr. Poonpong affirmed that the Department will continue to monitor high-risk businesses to safeguard Thai entrepreneurs, the country's economic system, and ensure fair trade competition. While inspections proceed, no conclusions about illegal activities can be made, as fairness is paramount. Should the businesses be found compliant, it could benefit the economy and employment. However, if any violations are discovered, the Department of Business Development will enforce strict legal measures and collaborate with relevant agencies to expand the investigation.