Bangkok: The Ministry of Commerce is ramping up efforts to crack down on nominee companies in 12 provinces identified as high-risk, with a particular focus on the tourism sector.
According to Thai News Agency, the Department of Business Development is set to conduct thorough investigations in these provinces, which have a high concentration of companies with foreign investments, especially in the tourism and service sectors. The department is also launching a comprehensive plan to prevent and suppress nominee businesses for the 2026 fiscal year.
Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, revealed that there are currently 778,457 active legal entities in Thailand, including 121,096 joint ventures between foreigners and Thais. Of these, over 117,496 companies, or 97%, involve foreign ownership of less than 50%, necessitating close monitoring of their shareholding structure and business operations. These companies are primarily located in 12 key provinces: Bangkok, Chonburi, Surat Thani, Phuket, Samut Prakan, Chiang Mai, Pathum Thani, Prachuap Khiri Khan, Nonthaburi, Samut Sakhon, Rayong, and Krabi, with a total of 109,046 companies. Many of these areas are popular tourist destinations and major foreign investment hubs.
The department has outlined five main approaches to prevent and suppress nominee businesses: utilizing in-depth data analytics technology to target and screen high-risk legal entities; investigating accounting firms and law firms that may be holding shares on behalf of foreigners; verifying legal entities that hold land or real estate using Thai nationals as nominees; auditing the accounts and financial statements of high-risk companies to verify investment authenticity; and sending information on high-risk legal entities to relevant agencies, including the Anti-Money Laundering Office (AMLO), the Department of Special Investigation (DSI), the Central Investigation Bureau, and the Revenue Department, for appropriate action.
The Director-General reported tangible results in the 2026 fiscal year, such as establishing a division to combat illegal businesses, appointing committees and subcommittees in four areas, conducting in-depth inspections in 19 areas across eight provinces, and implementing "5 measures for new registrations" effective from January 1, 2026. The department has also demonstrated a unified commitment with the Federation of Accounting Professions and seven accounting associations to not provide accounting services, accept business registrations, or support nominees.
In collaboration with relevant agencies, information was sent to AMLO for investigation of financial transactions in 357 cases and to the Revenue Department for investigation in 3,634 cases. Cases involving 11 legal entities suspected of wrongdoing were forwarded to the Economic Crime Suppression Division (ECSD) for legal action. A large-scale event was organized to combat nominee accounts and mule accounts, enhancing the knowledge of Thai accountants and raising awareness of illegal business practices, with participation from 1,625 accountants.
Mr. Poonpong reiterated the department's commitment to rigorous and continuous action, warning accounting and law firms against acting as directors or shareholders on behalf of foreigners in a nominee capacity without actual investment. Such actions are punishable by imprisonment of up to 3 years, a fine ranging from 100,000 to 1,000,000 baht, or both.