Authorities Probe Two Nominee Businesses at IT Square Bangkok
Authorities inspected two Bangkok businesses suspected of using Thai nominees to illegally operate foreign-controlled companies, with evidence suggesting violations of Thailand's Foreign Business Act involving Chinese investors.
The Department of Business Development, in coordination with the Immigration Bureau, conducted inspections on July 1, 2025, at IT Square in Bangkok's Silom district, investigating two high-risk entities suspected of using Thai nominees to operate foreign-controlled businesses.
According to Poonpong Nayanagaronn, Director-General of the Department of Business Development, the agencies received information from Immigration about irregular financial flows potentially linked to foreign business operations. Inspectors found evidence suggesting violations of the Foreign Business Act B.E. 2542.
The first entity, registered as a Thai company on June 27, 2024, with 4 million baht capital, has 60% Thai shareholders and directors, and 40% Chinese ownership. It provides legal, accounting, tax, and company registration services. Officials discovered eight Thai and two Chinese employees, with a Chinese shareholder providing statements. Investigators found multiple indicators of nominee usage, including undocumented marital claims between Thai and Chinese shareholders, questionable business control arrangements, and irregular payment structures requiring further investigation.
The second entity, registered August 25, 2024, with identical capital structure (51% Thai, 49% Chinese ownership), offers education consulting and overseas study guidance. During inspection, no shareholders or directors were present. Thai staff reported that Chinese nationals controlled operations, while they handled only visa services. Some payments went directly to Chinese bank accounts via WeChat, suggesting nominee arrangements.
Both companies have been ordered to submit clarification and supporting documents regarding investments, capital sources, management, and business operations. If evidence confirms Thai nominees were used or that foreigners illegally operated businesses in circumvention of Thai law, the department will pursue criminal prosecution and coordinate with relevant agencies for further action. The department emphasized its commitment to preventing and suppressing nominee schemes to ensure fair business competition and protect Thai interests.
