Photo courtesy of Khaosod

 

A thorough investigation has exposed over 100 companies on Koh Phangan operating under nominee arrangements to bypass Thai laws. The probe highlights the use of Thai nominees by foreign investors to unlawfully control businesses and lands on the island. Local businesses have raised concerns about unfair competition and disturbances caused by these illegal setups.

 

The crackdown follows complaints from local residents and business owners in Surat Thani province. Vice President of the Phangan Hotel and Tourism Association, Khomon Inkhong, noted that while most visitors respect local laws, a few have disrupted the market by bypassing regulatory frameworks. National Police Chief Pol. Gen. Kittirat Phanphet has initiated measures to tackle these illegal operations in tourist areas.

 

The police strategy includes scrutinizing foreign residences, verifying visa processes for high-risk nationalities, arresting violators, and coordinating intelligence for targeted raids. The Department of Business Development is focusing on eliminating Thai nominees facilitating foreign-controlled businesses, particularly in Surat Thani, noted as the second-highest risk area for such activities.

 

In particular, authorities flagged First Consultants 47 Co., Ltd., involved in numerous companies linked to nominee arrangements. Another case involves Sithaya Beachfront Villa, a luxury project violating hotel licensing laws, prompting investigations into its foreign-owned structure potentially evading taxes. The crackdown aims to submit evidence for prosecution and tighten legal loopholes.

 

Field inspections are intensifying under the Department of Employment to ensure foreign workers in cities like Bangkok and Phuket adhere to Thai employment laws. Occupations reserved for Thai nationals, such as tour guiding and retail work, remain protected. Violators face fines, deportations, and bans, with employers subject to penalties for non-compliance.

 

Tensions are rising in Thailand’s tourist areas as communities react to foreign influence in the market. Authorities are balancing the need to attract foreign investments with safeguarding Thai economic interests, reinforcing law enforcement to mitigate illegal foreign business practices.

 

Key Takeaways

• Over 100 businesses on Koh Phangan are under investigation for nominee arrangements.
• Authorities implement multi-agency strategies to enforce legal business operations.
• Employment inspections intensify to ensure compliance with Thai occupational laws.

 

Related Stories:

Foreigners Arrested for Unlawful Business in Patong

Two Israelis Arrested in Koh Phangan Business Raids

 

  Adapted by ASEAN Now from Khaosod 2025-10-28

 

 

Year after year things like this and illegal villas being built appear and they look like they are cracking down or tell the public they are . Then as usual nothing is done and everything goes on as before until the next year when it appears again. Pretty sure all this will be a misunderstanding and nobody will see jail , be deported and no illegal villas will be demolished.

When will they start looking at the likes of Phuket and Pattaya and Koh Tao just to name a few as it’s not just Phangan or Samui 

If that’s the case with such a small island then the likes of Phuket and Pattaya must have many 1,000s when are those places going to be investigated !!!!