The Ministry of Commerce has announced a review and major overhaul of the Foreign Business Act (FBA) B.E. 2542 (1999) to combat the use of proxy or nominee structures by foreign investors. The reform will aim to close loopholes that allow foreign entities to bypass ownership restrictions in protected sectors, with stricter enforcement and significantly harsher penalties expected. Authorities say the proposed changes will improve transparency and ensure compliance with existing regulations.

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The review, launched by the Department of Business Development (DBD), marks the most significant revision of the law in more than 20 years. The current legislation divides restricted activities into three tiers, including nine occupations that are strictly prohibited to foreign ownership. However, enforcement has been undermined by complex shareholding arrangements that obscure true ownership.

A key focus of the reform is eliminating cross-shareholding structures, where companies hold stakes in each other to disguise foreign control. These circular ownership arrangements have made it difficult for officials to determine whether a business qualifies as a foreign entity under the law. By clarifying definitions and tightening rules, the DBD aims to prevent misuse of Thai-registered companies as fronts for foreign operations.

The government also plans to introduce tougher penalties to deter violations. Proposed measures include asset seizure for those found guilty of using nominees and new criminal charges for operating without the required licences. Officials noted that current fines are often treated as a cost of doing business, with offenders quickly re-establishing operations under new structures.

In addition, the reforms will require greater transparency from foreign entities, including mandatory reporting of changes in management and responsible persons. These steps are intended to strengthen oversight and close gaps that have limited effective prosecution in the past.

Experts suggest the changes could improve investor confidence by aligning Thailand’s legal framework with international standards, while still protecting domestic industries. However, businesses currently operating under complex structures may face increased scrutiny and compliance costs.

The Nation reported that The Ministry of Commerce is continuing its evaluation of the FBA and related regulations, with further details expected as the review progresses. Implementation timelines have not yet been confirmed, but authorities have indicated that enforcement will be a priority once amendments are finalised.

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Adapted by ASEAN Now Nation 19 Apr 2026

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So instead of opening up, stricter rules and penalties as a reform?

Maybe modernize and stop being protective would be better

On 4/19/2026 at 4:36 AM, Georgealbert said:

Proposed measures include asset seizure for those found guilty of using nominees

And what are the punishments for the nominees themselves?

Reform in this sector is long overdue. not so guilable foreigners conned by 'bend the rules ' lawyers and government officials. who later have their Faux invrstments siezed.

Looks like Thailand has to deal with the International organizations headed by Oligarchs from Russia, the US, Europe and beyond as national borders become less and less significant. These are schooled people who know how to game the system. The problem is not with the ones who use illegal means of doing business, they are breaking the law and will be eventually apprehended.

The real danger lies within the organizations who have the legal staff and research departments to find loopholes, take advantage of vagaries and or ambiguities found within local legal systems. They have access to insiders within a country's legal framework to find ways to bend the law, you know: "well it may not be right but it's legal."

Hedge funds, private equity organizations and multinational corporations whose ownership can be impossible to trace is where the reformers should be spending their time and energy.

Let's ask a couple of questions.

What percentage of foreign nominee businesses are there in Thailand?

If you close to many loop holes and it becomes to difficult then foreign investors will look elsewhere.

So foreign investors are welcome to bring their money, resources, expertise, more efficient processes, and train the local workers to bring them up more towards international standards to compete globally?

I understand the need just throwing a different perspective out there since not everyone sees this the same way.

...Sadly...This Is The 'Yardstick' That Foreign Investors In Thailand Should Measure Their Business Aspirations Against...

(...At The Same Time...That Is Why So Many Unscrupulous 'Officials' & 'Legal Experts' 'Get Away With Murder'...)

"Jim Thompson (full name: James Harrison Wilson Thompson, 1906–1967?), known as the "Thai Silk King"

...He single-handedly revived Thailand’s nearly extinct silk industry in the 1950s–1960s. He founded the Thai Silk Company (still operating today under the Jim Thompson brand), turning traditional handwoven Thai silk into a global luxury export. His business grew rapidly, employing thousands and supplying silk for films like The King and I...

...On March 26, 1967 (Easter Sunday), while vacationing with friends at the Moonlight bungalow in Malaysia’s Cameron Highlands, the 61-year-old Thompson went for an afternoon walk around 1:30–4 p.m. and never returned...

Just open up the service sector to 100% foreign ownership for those investing at least 100 million baht initial paid up capital and employing at least 10 Thais. Thailand needs to attract sizeable foreign investment that provides employment. Foreigners with Thai wives can still own small businesses because they can't do anything to stop that.

Crack down on foreign controlled property developers because land ownership is illegal for foreigners.

I wonder if this affects all the foreigners who own condos in a company name ???

Just asking for a friend!

15 minutes ago, supersomchai said:

I wonder if this affects all the foreigners who own condos in a company name ???

Just asking for a friend!

Why would anyone use a proxy or company name to by a condo, when you can simply put in your own name. You can even own more than one, and not be considered a business.

12 minutes ago, KhunLA said:

28 minutes ago, supersomchai said:

I wonder if this affects all the foreigners who own condos in a company name ???

Just asking for a friend!

Why would anyone use a proxy or company name to by a condo, when you can simply put in your own name. You can even own more than one, and not be considered a business.

Perhaps to get around the percentage of Thai vs Farang ownership in a building?

But, wasn't it more the purchase of HOUSES that was (is?) done via nominees?

I seem to recall being offered such an "opportunity" many years ago on Phuket.

9 minutes ago, VBF said:

Perhaps to get around the percentage of Thai vs Farang ownership in a building?

But, wasn't it more the purchase of HOUSES that was (is?) done via nominees?

I seem to recall being offered such an "opportunity" many years ago on Phuket.

I wouldn't want to be in a complex that was half foreigners, unless all Asians 😄

Yes agree, widely used for detached houses or townhouses, or so reported. That takes a special kind of stupid, invest possibly your life savings in an illegal activity.

3 minutes ago, KhunLA said:

I wouldn't want to be in a complex that was half foreigners, unless all Asians 😄

Yes agree, widely used for detached houses or townhouses, or so reported. That takes a special kind of stupid, invest possibly your life savings in an illegal activity.

Rather like the scheme that offered you a 30 year lease, but that "promised" that extensions would be available at its expiration.

Of course, no promises of how much these extensions would cost and even if the original "promiser" would still be around!

Often referred to as buying a "pig in a poke".

Just what you need as you get older and want some security in your life! As you say...a special kind of stupid 😉

1 hour ago, VBF said:

Rather like the scheme that offered you a 30 year lease, but that "promised" that extensions would be available at its expiration.

What so called "scheme" was that?

Are you suggesting that there once was such an "official" Thai Government scheme?

2 minutes ago, scottiejohn said:

What so called "scheme" was that?

Are you suggesting that there once was such an "official" Thai Government scheme?

No way - just a scheme cooked up by some people trying to sell property!

The word has multiple meanings:

AI overview of "scheme" https://www.google.com/search?q=scheme&sourceid=chrome&ie=UTF-8

"A scheme is an organized plan, system, or arrangement, often officially adopted (e.g., pension scheme) or a plotted, sometimes dishonest, intrigue."

2 minutes ago, VBF said:

No way - just a scheme cooked up by some people trying to sell property!

So just the normal scam the world over!

Why mention it?

1 minute ago, scottiejohn said:

So just the normal scam the world over!

Why mention it?

it's in keeping with the thread...why be so critical?

And where else has the 30-year lease restriction?