Report Thailand Targets Nominee Accountants to Curb Illegal Foreign Businesses

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Picture courtesy of KhaoSod

 

The Ministry of Commerce in Thailand is poised to implement new regulations targeting nominee involvement in accounting, in an effort to hinder illicit foreign business operations within the country. Oramon Sapthaweetham, Director-General of the Department of Business Development, announced that Deputy Commerce Minister Napintorn Srisanpang, head of the Subcommittee on Preventing and Suppressing Nominee Activities, is prioritising the issue of foreigners using Thai citizens as proxies to circumvent the Foreign Business Act of 1999.

 

This Act prohibits foreigners from partaking in specific business activities without permission. However, investigations have revealed that some accounting firms and accountants are complicit in these illegal practices, advising and assisting foreigners in the registration of entities with Thai nominees acting as directors or shareholders.

 

The Foreign Business Act dictates that foreigners must seek approval from the Foreign Business Board if they wish to own more than 50% of businesses in selected sectors. Offenders of this Act face up to three years in prison, fines between 100,000 and 1 million baht, or both. Thai nationals who help facilitate these violations are liable to similar penalties.

 

 

 

To address this issue, the Department of Business Development has been instructed to draft new regulations to specify the qualifications and conditions applicable to accountants. This is intended to prevent their involvement in illegal foreign business activities, which distorts fair competition for Thai entrepreneurs.

 

The draft regulations will be made available to the public from April 23 to May 7 for consultation. Key provisions include barring accountants from aiding foreigners in business registrations or holding shares on their behalf. Those caught violating these regulations could face fines up to 10,000 baht and be disqualified from practising unless certain conditions are met, such as a two-year period since the offence or cooperating to provide crucial information for legal proceedings under the Foreign Business Act.

 

This initiative seeks to safeguard national interests and foster a fair business environment for both compliant Thai and foreign entrepreneurs. The government encourages feedback on the draft regulation through its website during the consultation phase.

 

  Adapted by ASEAN Now from The Thaiger 2025-04-28