Nominee business crackdown to target Koh Samui and Koh Pha-ngan
Following detailed inspections and reports from locals, authorities have identified potential nominee businesses in tourist areas, reports the
Authorities will begin a nominee business crackdown next week after inspections and local complaints identified suspected cases in tourist areas, according to the Bangkok Post. The Department of Business Development said the first focus will be Koh Samui and Koh Pha-ngan in Surat Thani, while Phuket remains one of the provinces with a large concentration of foreign-invested companies.
DBD flags 34 companies for deeper investigation
DBD Director-General Poonpong Naiyanapakorn said the department suspects 34 companies in the real estate and tourism sectors may be operating through nominees.
The information has been sent to the Department of Special Investigation for further investigation. Officials did not disclose the nationalities involved or where the companies operate.
Poonpong said the DBD also plans to simplify government paperwork to speed up enforcement work.
The department will meet the Thai Bankers’ Association next week to examine the sources of shareholders’ investment funds before accepting new company registration applications.
Company data show heavy foreign co-investment in key islands
Officials said screening criteria will be discussed later, with the aim of balancing tighter checks against the need to keep company registration moving for the private sector.
The agencies said nominee arrangements let foreign operators control businesses reserved for Thai nationals, weakening fair competition for lawful foreign investors and putting pressure on Thai small and medium-sized enterprises.
Surat Thani has 21,717 registered limited companies, including 11,649 foreign co-invested firms. In Koh Pha-ngan, 4,761 limited companies are registered and 3,213 are foreign-invested, with Israeli shareholders accounting for 22%, followed by French at 13% and British at 11%.
Koh Samui has 12,050 registered limited companies, including 8,213 foreign co-invested firms. In Phuket, there are 29,646 registered companies, including 11,626 foreign-invested companies, with Russian shareholders making up 20%, Chinese 10% and British 10%.
Source: https://www.thephuketnews.com/nominee-crackdown-to-focus-on-tourist-islands-100204.php
