The Commerce Ministry of Thailand has launched an investigation into 6,551 businesses where foreigners allegedly hold more than 50% of shares without the necessary permits. This investigation aims to enforce compliance with the Foreign Business Act B.E. 2542 (1999) and is utilizing advanced technology to analyze and link databases. The maximum allowable foreign shareholding in Thailand is 49%, but various businesses are reserved exclusively for Thai nationals, prompting concerns over potential illegal use of Thai nominees as proxy shareholders.
Get today's headlines by email 
Poonpong Naiyanapakorn, Director-General of the Department of Business Development, stated that the probe involves collaboration with the Department of Special Investigation and tax authorities. Foreign operators and investors are warned to adhere to legal requirements, which categorize businesses into three groups based on their availability to foreigners. Category 1 prohibits foreign involvement entirely, Category 2 allows involvement with ministerial and cabinet approval, and Category 3 permits participation with specific permissions.
Violations of the Foreign Business Act can result in severe penalties, including up to three years in prison, fines of 100,000 to 1 million baht, or both. Thai nationals are also cautioned against acting as nominees for foreign shareholders to circumvent these regulations.
The Department of Business Development is leveraging a comprehensive database system and risk analysis technology to identify and investigate entities potentially in violation. This proactive approach aims to ensure compliance and protect Thailand’s economic interests.
Join the discussion? 
Already a member? 
Adapted by ASEAN Now · Thai Newsroom · 04 Mar 2026