Thailand’s Department of Business Development (DBD) is stepping up its crackdown on illegal “nominee” business structures, launching in-depth inspections in 12 provinces where companies with foreign shareholders are heavily concentrated — particularly in tourism and related services.

According to the DBD, Thailand currently has 778,457 active registered companies. Of these, 121,096 involve joint investment between Thai and foreign nationals. About 97% of those companies have foreign shareholders holding less than 50% of shares, raising concerns that some may be using Thai nationals as nominees to circumvent foreign ownership restrictions.

The 12 targeted provinces include Bangkok and major tourist destinations such as Phuket, Chiang Mai, Chonburi and Surat Thani.

For fiscal year 2026, the DBD outlined five key measures:

• Using data analytics to identify high-risk companies

• Investigating accounting and law firms suspected of acting as nominee shareholders

• Examining companies holding land or property through Thai proxies

• Auditing financial statements to verify genuine investment

• Sharing information with anti-money laundering, tax, and law enforcement agencies

Authorities have already referred hundreds of cases for financial investigation and tax review, and several companies are facing legal action.

The DBD warned that acting as a nominee shareholder without real investment is a criminal offense, punishable by up to three years in prison, fines ranging from 100,000 to 1 million baht, or both.

Officials said enforcement will continue to ensure greater transparency and prevent foreign ownership law violations in Thailand’s business sector.