Business Development Department clamps down on nominees
With the number of Thais holding shares on behalf of foreigners on the increase, the authorities are now thoroughly screening suspect businesses
A total of 26,019 businesses across four sectors – tourism and related businesses, real estate and land trading, hotels and resorts, and logistics and transportation – were identified as potentially involving Thai nationals holding shares on behalf of foreigners (nominees) in fiscal 2024, Oramon Sapthaweetham, director-general of the Department of Business Development has told the media.
The businesses are located in six provinces including Bangkok, Surat Thani, Prachuap Khiri Khan, Chiang Mai, and Phuket. After a thorough screening, only 498 businesses remain under investigation.
Of these, 371 have been cleared due to a lack of risk, while 64 cases have been charged with accounting violations and referred to the Revenue Department for further investigation.
The remaining 63 cases include four suspected of nominee activity in Bangkok, Surat Thani, and Prachuap Khiri Khan and investigations are ongoing. They will be forwarded to law enforcement for further scrutiny.
The department has expanded its investigations into other sectors following complaints from the public and businesses about the influx of cheap, substandard foreign products into Thailand. Here too, there are concerns about foreign businesses operating in violation of Thai laws, including those related to online platforms, warehousing, logistics and transportation, steel trading, and construction.
Recent joint inspections with the Bangkok Metropolitan Administration (BMA) in areas such as Huai Khwang and Sampheng have raised suspicions that some businesses may be operating illegally or as nominees. These cases are currently under deeper investigation.
Violations related to nominee activities carry penalties of up to three years in prison, fines ranging from 100,000 to 1,000,000 baht, or both.
Oramon also addressed reports of foreigners opening small retail shops or selling imported goods and having customers scan QR codes to make payments directly to foreign bank accounts. Any individual opening a retail shop, regardless of the shop’s size, must register the business and pay taxes in accordance with Thai law.
During field inspections with the BMA, the department instructed the BMA to ensure these businesses are properly registered. Failure to comply will result in legal action.
Foreign workers who have set up market stalls, such as those selling fresh food or cooked-to-order meals, are in violation of the law. Both the department and the BMA agencies are empowered to take immediate action to regularly enforce these laws.
