Department of Business Development Sweeps Phuket to Crack Down on 'Nominee' Businesses

The Department of Business Development, together with 5 allied agencies including the Department of Special Investigation (DSI), Phuket Tourist Police, Immigration, Phuket Tourism and Sports Office, and Phuket Commerce Office, conducted an investigation in Phuket on January 29-30 targeting tourism-related businesses. The team inspected 10 suspicious businesses in tourism sectors like tour operators, hotels, restaurants, and charter boat services, focusing on potential illegal use of Thai nominees to circumvent foreign business ownership laws. Phuket was identified as a high-risk area, with 29,090 registered companies, of which 11,263 (38.72%) involve foreign investment. Notably, most foreign investments are structured to remain under 50% to avoid strict foreign business regulations, creating opportunities for potential legal circumvention. During the investigation, the team discovered several irregularities, including accounting offices with suspicious connections to businesses and instances of identity document misuse. Three companies were found to have accounting staff or employees serving as nominees for foreign-owned businesses. The Department emphasized its commitment to preventing and cracking down on nominee businesses to create a transparent, fair business environment and protect legitimate Thai entrepreneurs.