Commerce Ministry Cracks Down on Foreign Nominee Schemes in Samui, Phangan
The Commerce Ministry raided 34 companies in Koh Samui and Koh Phangan suspected of using Thai nominees to circumvent foreign ownership restrictions, uncovering a luxury villa development network with assets exceeding 1.6 billion baht contr
Commerce Ministry officials led by Poonpong Nainapakaranom, Director-General of the Business Development Department, announced that on Friday, July 10, 2025, the ministry conducted raids in Koh Samui and Koh Phangan districts of Surat Thani Province in cooperation with the Department of Special Investigation (DSI) and local agencies. The operation targeted 34 companies suspected of using Thai nationals as nominee shareholders to avoid restrictions under the Foreign Business Act of 1999. Five locations were initially searched.
The first target, Company J (Special Case 93/2569), allegedly used Thai nominees to hold shares on behalf of foreign nationals while owning land and conducting real estate business, which is prohibited under the Foreign Business Act. The company is developing a luxury villa project on over 14,000 square meters in Bo Phut Subdistrict, Koh Samui, for sale to foreigners. Investigation found Chinese nationals serving as board members and executives making policy and business decisions. The project address is registered to at least five interconnected companies operating as a complete network handling project management, construction contracting, land development, marketing, and property sales.
Further checks revealed the company holds 15 land parcels totaling 97 acres, 3 ngan, and 88.4 square wah, valued at approximately 1,567.54 million baht, with the overall project estimated at 1,600 million baht or potentially several billion more. The company's financial statements show total assets exceeding 1,692 million baht, with over 1,987 million baht circulating through bank accounts, mostly from foreign transfers. Six affiliated companies have combined assets exceeding 2,024 million baht. The search yielded documents on shareholding, land ownership, real estate contracts, construction agreements, project designs, and financial transactions. DSI is expanding the investigation to related individuals and entities, examining the complex ownership structures.
The second target, Law Office P (Special Case 94/2569), involves a Koh Samui entity with Thai shareholders and a Chinese national serving as board member and shareholder, operating as a real estate agent and broker with property holdings on the hillside in Bo Phut Subdistrict.
