The Commerce Ministry of Thailand has launched an investigation into 6,551 businesses where foreigners allegedly hold more than 50% of shares without the necessary permits. This investigation aims to enforce compliance with the Foreign Business Act B.E. 2542 (1999) and is utilizing advanced technology to analyze and link databases. The maximum allowable foreign shareholding in Thailand is 49%, but various businesses are reserved exclusively for Thai nationals, prompting concerns over potential illegal use of Thai nominees as proxy shareholders.

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Poonpong Naiyanapakorn, Director-General of the Department of Business Development, stated that the probe involves collaboration with the Department of Special Investigation and tax authorities. Foreign operators and investors are warned to adhere to legal requirements, which categorize businesses into three groups based on their availability to foreigners. Category 1 prohibits foreign involvement entirely, Category 2 allows involvement with ministerial and cabinet approval, and Category 3 permits participation with specific permissions.

Violations of the Foreign Business Act can result in severe penalties, including up to three years in prison, fines of 100,000 to 1 million baht, or both. Thai nationals are also cautioned against acting as nominees for foreign shareholders to circumvent these regulations.

The Department of Business Development is leveraging a comprehensive database system and risk analysis technology to identify and investigate entities potentially in violation. This proactive approach aims to ensure compliance and protect Thailand’s economic interests.

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  Adapted by ASEAN Now · Thai Newsroom · 04 Mar 2026

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I posted about this a week or more ago, the Thai nominee business model is toast... wake up and sort it out if it applies to you and the clock is ticking. Even the Nation news is picking up on it.

nationthailand

Thailand intensifies crackdown on nominee business networks

Officials say tougher data checks and legal measures are aimed at stopping company status being misused for money laundering and illegal business. (125 characters excluding spaces)

Whatabout the third party ownership with Pattaya condos. A friend of mine fell for this and it cost him heaps to get the property in his wifes name. When he purchased the property 20 years he wasn't married to a Thai. It's always been my belief that foreigners married to Thais should be able to have maybe no more than one rai in their name or both names. Of course this will never happen. Foreign countries should have reciprical rights what we can't do in Thailand Thais can't do in the country they choose to emigrate to. Again this won't happen either as Thais would claim that this is racial discrimination.

It's okay, their lawyer said it's done this way all the time no problem. Of course the Lawyer has little to lose as the authorities normally target the businesses and owners of said business.

The Lawyer can fix it for a fee of XXX,XxX

baht though. It was all just a misunderstanding.

You want to talk about Scams in Thailand. This subject is one of the biggest ones around.

It was only a matter of time until they started using technology to locate, target and investigate foreign owned businesses exploiting the ownership structure percentages to operate.

If someone actually sat you down and explained and advised you of the actual risk to you and your money most people would think twice about investing in a Thai majority owned business.

But hey I'm just some guy on the internet what do I know besides "A fool and his money will soon part"

Any successful investor knows that risk is a major factor in running a business and when don't manage risk it will eventually burn you, usually badly.

Just now, NONG CHOK said:

Whatabout the third party ownership with Pattaya condos. A friend of mine fell for this and it cost him heaps to get the property in his wifes name. When he purchased the property 20 years he wasn't married to a Thai. It's always been my belief that foreigners married to Thais should be able to have maybe no more than one rai in their name or both names. Of course this will never happen. Foreign countries should have reciprical rights what we can't do in Thailand Thais can't do in the country they choose to emigrate to. Again this won't happen either as Thais would claim that this is racial discrimination.

these thais married or not , in our home countries can rapidly (3 years or less) get NATIONALITY, even illegals get it... my home country is not interested in an agreement for nationals to get insurance in Thailand , they paid in all their lives either...

2026 and thailand still in the middle ages

why can't a foreigner own his own company 100% and there is no need for 4 lazy thais in most cases

the whole, if farang was allowed to buy land, blabla, ... nothing to do with foreigner as I see inflation in sale and rental homes without any foreign interference, just plain thai greed and inflation

8 hours ago, Sir Dude said:

I posted about this a week or more ago, the Thai nominee business model is toast... wake up and sort it out if it applies to you and the clock is ticking. Even the Nation news is picking up on it.

nationthailand

Thailand intensifies crackdown on nominee business networks

Officials say tougher data checks and legal measures are aimed at stopping company status being misused for money laundering and illegal business. (125 characters excluding spaces)

This loser is crying

Just now, Jimbolkb said:

2026 and thailand still in the middle ages

why can't a foreigner own his own company 100% and there is no need for 4 lazy thais in most cases

the whole, if farang was allowed to buy land, blabla, ... nothing to do with foreigner as I see inflation in sale and rental homes without any foreign interference, just plain thai greed and inflation

I'm no expert but when some foreigners who have more knowledge, money, and ability to produce something at higher profit margin then locals the locals think that is unfair. There are tons of protectionism type structures and policies in most countries.

Then the hierarchical system in Thailand to the decision makers in Bangkok is important. It's not about Fair competition in Asia it is about being able to project to the public you are successful, wealthy, and capable of greatness.

Why some large companies are allowed to operate is training, ability to learn world leading processes for efficient production, cost management and control. Basically Thai's want to be competitive and will leverage what is available to help them succeed. You can't fault them for trying and large global countries spend good money to be fully aware of the expense, risk, and difficulty they face before investing heavily in any market.

I guess dirty money property purchases in Britain has finally reached saturation point.

This is just the overflow.

On 5/4/2026 at 7:43 PM, Sir Dude said:

I posted about this a week or more ago, the Thai nominee business model is toast... wake up and sort it out if it applies to you and the clock is ticking. Even the Nation news is picking up on it.

nationthailand

Thailand intensifies crackdown on nominee business networks

Officials say tougher data checks and legal measures are aimed at stopping company status being misused for money laundering and illegal business. (125 characters excluding spaces)

This is word by word the same news already circulating 25 years ago, and than every year anew, maybe in conjunction with the promotion cycle of gov employees.

They throw around some big numbers, catch one or two companies (out of thousands), then it all becomes too much work (or brown envelopes are sufficient again), and the cycle repeats.

Of course, if you have a nominee structure, clean it up: this is not difficult if you invest the proper time and thought into it. But this news by itself means little more than hot air in a tropical country.

Edited May 6May 6 by jts-khorat