Thailand’s Department of Business Development has launched a major crackdown on suspected foreign nominee businesses on Koh Phangan and Koh Samui in Surat Thani province, after reports that foreign investors were using Thai nationals to bypass ownership restrictions. Authorities found one individual listed as a shareholder in 87 companies, while another accounting office was linked to 66 firms and 89 registered business addresses.
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Director-general Phunpong Naiyanapakorn said the operation targeted companies suspected of violating the Foreign Business Act 1999 by using Thai nominees to conceal foreign ownership in restricted sectors. Investigators examined 16,811 registered companies across the two islands and found that 11,426 firms, or 67.97%, involved foreign investment.
The department said some companies were operating legally, while others were suspected of using Thai shareholders as proxies for foreign investors. Officials described the issue as an urgent priority and confirmed closer cooperation with partner agencies under a memorandum of understanding aimed at tackling nominee business structures.
On Koh Phangan, investigators identified two main groups of concern. The first involved an accounting office operating under the name First Consultants Universal Service, officially registered as First Consultants 47 Co Ltd. Authorities said the owner appeared as a shareholder in 66 companies, while the office address was linked to 89 registered firms despite no visible business activity at the site.
Police seized documents and computers from the premises to investigate whether Thai nominees had been used on behalf of foreign investors. The evidence will also support possible criminal proceedings.
The second case involved a luxury villa development known as Sithaya Beach Front Villa, comprising eight villas rented to foreign tourists for 13,000 baht per night without a hotel licence. Officials questioned the project manager and six foreign tourists and uncovered concerns over land ownership linked to assets valued at more than 152 million baht.
Investigators said two Thai companies held the land, while Israeli shareholders controlled 49% of shares. Another Israeli company was later added as a shareholder, raising suspicions of tax avoidance and concealed foreign ownership.
On Koh Samui, authorities identified further suspected nominee arrangements involving employees of company registration and accounting firms listed as majority shareholders alongside foreign investors. One individual was found holding shares in 87 companies. The Department of Business Development has referred the case to the Department of Special Investigation for further examination.
The department has also submitted information on 34 large companies in Surat Thani to the Anti-Money Laundering Office for financial investigations. Each company reportedly holds assets exceeding 100 million baht and operates in sectors restricted under the Foreign Business Act, mainly property-related businesses.
Penalties under the Foreign Business Act include prison terms of up to three years and fines ranging from 100,000 to 1 million baht for both Thai nominees and foreign operators acting without permission. Additional daily fines of 10,000 to 50,000 baht can be imposed for ignoring court orders.
ThaiRath reported that authorities said similar investigations are now expanding to other tourist provinces including Chon Buri, Chiang Mai, Prachuap Khiri Khan, Phuket, Krabi and Phang Nga as part of a wider effort to prevent illegal foreign control of businesses in Thailand.
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Adapted by ASEAN Now ThaiRath 9 May 2026