Police Launch Major Crackdown on Nominee Businesses in Region 8

[Georgealbert]

 

Picture courtesy of Matichon.

 

Police in Region 8 have launched a large-scale operation targeting illegal nominee businesses, with raids conducted at 29 locations across seven provinces. Koh Samui was a focus of one part of the operation, with seven key targets subjected to searches.

 

On February 25, officers from Region 8 Police, in collaboration with immigration authorities, tourist police, and forensic teams, carried out raids aimed at uncovering foreign-owned businesses operating unlawfully under Thai nominees. The operation was part of an ongoing effort to crack down on foreign nationals using Thai citizens as proxies to own and manage businesses in the country.

 

The investigation stemmed from a complaint filed on February 28, 2024, by the Koh Samui Municipality, which accused a company of illegally encroaching on land in Chaweng Noi, Bo Phut sub-district. The company, which was constructing luxury villas under the name “Sea Breeze,” was suspected of violating the Building Control Act B.E. 2522 (1979) and engaging in nominee business practices.

 

Further investigations revealed that the project was owned by a German national and facilitated by a legal office that had allegedly helped foreign investors set up over 160 companies in Koh Samui. These businesses spanned various sectors, including luxury villas, rental properties, restaurants, and tourism-related services.

 

As part of the crackdown, police conducted searches at seven key locations on Koh Samui, including the law office in question. Authorities discovered that 167 companies had been registered under this single office’s address, raising suspicions of widespread nominee arrangements. Seized evidence included company registration documents, financial records, tax filings, employment contracts, and computer hard drives.

 

Thai law prohibits foreign individuals from owning more than 49% of a company in restricted industries, such as real estate and tourism services. However, many foreign investors circumvent this restriction by using Thai nationals as shareholders on paper while retaining full control of the business.

 

Authorities have vowed to intensify efforts to identify and dismantle such arrangements, particularly in major tourist hotspots like Koh Samui, where foreign investment in property and hospitality is significant.

 

This latest crackdown underscores the Thai government’s commitment to enforcing laws that protect local businesses and ensure that foreign investments comply with legal frameworks.

 

-- 2025-02-26

 

[JoePai]

facilitated by a legal office that had allegedly helped foreign investors set up over 160 companies 

 

Can only hope the Thai owners of this biz also get pulled up in front of the Beak 

[ozz1]

Anyone who invests in Thailand should know the rules but they think they know better might as well burn your money 

[black tabby12345]

What really makes Thai bureaucrats so keen to deprive own people of their livelihood?

 

Such a business often employs Thai nationals.

 

And shutting down these establishments mean getting Thai workers out of their jobs.

 

Empty Public stance, always causes More Harm Than Good on any occasions.

 

Just like (BKK's) forced relocation proposal of the street food vendors to the designated area.