Government Tightens Crackdown on Nominee Schemes in Trade Push
Thailand's government has elevated the fight against nominee schemes to a key commercial priority, tightening controls on illegal foreign capital while expanding scrutiny beyond company registration to monitor ongoing structural changes. Th
The government has elevated its campaign against nominee schemes to one of nine urgent commercial priorities, aiming to tighten controls on unlawful capital while reassuring legitimate investors. Deputy government spokesman Lalida Periwatavej announced that the Ministry of Commerce declared the prevention and suppression of illegal business and goods activities as a priority from September 15, 2025, with particular focus on preventing Thai nationals from being used as proxy owners for foreign capital in violation of law.
The approach represents an intensification of existing measures rather than a new initiative. Starting August 1, scrutiny has expanded from the company registration stage to monitoring structural changes after registration, including changes in shareholders, directors, and signatories, allowing officials to assess risk throughout the entity's lifecycle.
According to Lalida, applicants meeting screening criteria must provide detailed investment information and financial evidence so authorities can verify the true source and capacity of investment. Being flagged as high-risk does not automatically mean a company is illegitimate or a nominee arrangement, nor does foreign shareholding at legally permitted levels automatically constitute nominee activity. Officials must examine facts and evidence before taking legal action.
The government is balancing stricter enforcement against unlawful capital with support for legitimate investors. The Department of Business Development has launched the e-Foreign Business system since August 1, 2024, allowing foreign entrepreneurs to apply for business licenses or certificates online, reducing bureaucratic steps. However, online submission does not guarantee automatic approval; applications still undergo legal review based on applicable rules and individual circumstances.
The government aims to create a fair competitive environment where legitimate, transparent investors can operate with confidence, while those using Thai nominees or corporate structures to circumvent law face investigation and legal action. Risk-based screening and inter-agency coordination will help authorities target violations more precisely without deterring lawful investment. The government will continue combating nominee schemes through upstream screening, post-registration monitoring, and inter-agency coordination when risks are identified.
