Authorities Raid Two Chinese Firms For Suspected Nominee Business
Thai authorities raided two Chinese-linked firms in Bangkok on July 1 for allegedly using Thai nationals as fronts to illegally operate businesses, with one company managing visa applications and the other providing business services while
On July 3, 2025, Poonpong Naiyanapakarun, director-general of the Department of Business Development under the Commerce Ministry, revealed that on July 1, his department's anti-nominee task force coordinated with Immigration Police to inspect two high-risk entities at a major shopping center in Bangkok's central business district. The agencies acted on information from Immigration Police regarding suspicious financial flows potentially linked to foreign business operations, investigating whether they violated the Foreign Business Operation Act of 1999.
The first company registered as a Thai entity on June 27, 2024, with 4 million baht in registered capital. Thai nationals hold 60% of shares and management positions, while Chinese nationals hold 40%. The company provides legal, accounting, tax, and business registration services. Initial inspection found eight Thai employees and two Chinese nationals, with a Chinese shareholder providing information to officials.
Document reviews and witness interviews revealed multiple indicators consistent with using Thai nationals as nominees. Investigators need to examine relationships between Thai and Chinese shareholders who claim to be spouses but lack marriage registration, control of business operations, service payment methods, and financial flows of all parties involved. Some findings align with issues Immigration Police are investigating.
The second company registered as a Thai entity on August 25, 2024, with 4 million baht in capital. Thai nationals hold 51% while Chinese nationals hold 49%. It provides educational consulting, international study guidance, and academic advisory services.
Inspectors found no board members or shareholders present. Thai employees reported that the person they recognize as manager issuing business directives is Chinese, and they have no information about Thai shareholders or board members. Thai staff only process visa applications; other matters are directed to Chinese shareholders via WeChat, and some service payments go to Chinese accounts.
Poonpong stated, "These facts are being documented to determine whether they constitute using Thai nationals as fronts or nominees, or foreign nationals operating businesses in violation of law."
The department has notified both companies' board members and shareholders to clarify facts and submit documentation regarding investments, fund sources, business management, and operations within a set timeframe. If sufficient evidence emerges of using Thai nominees or illegal foreign business operations, legal action will be taken and relevant agencies notified.
Violations of the Foreign Business Operation Act carry penalties of up to three years imprisonment or fines between 100,000-1,000,000 baht, or both. Courts may order business closure or cancellation of illegal shareholdings.
