Phuket nominee-business crackdown sends 196 cases to court

Authorities in Phuket have identified 6,682 companies as potentially operating through nominee structures, with 196 cases reportedly supported by sufficient evidence for prosecution, following intensified scrutiny of foreign investment in the province.

The figures were presented after the House Committee on Commerce and Intellectual Property, led by chairman Samrit Tantanasap, conducted a field visit to Phuket on 14 September 2026. The committee examined foreign-owned businesses and identified nominee businesses, foreign land ownership and leasing, city planning and migrant labour management as issues requiring urgent attention.

The Phuket Provincial Commerce Office said more than 32,000 companies were registered in the province, including more than 11,000, or 34.59%, involving foreign shareholders. The largest groups of foreign investors were from Russia, China, the UK, France and Australia.

The Phuket Express reported that courts had issued verdicts in nine cases, with fines ranging from B50,000 to B500,000. Six other cases were reportedly being tried, while 191 remained under investigation. These figures do not form a single non-overlapping breakdown of the 196 cases, and the report did not explain the discrepancy.

The enforcement drive has coincided with a reported fall of more than 60% in registrations of companies with foreign shareholders and a 30% rise in business dissolutions. Saranyut Mallam, president of the Phuket Tourism Business Association, supported action against nominee structures but warned that broad measures could affect legitimate foreign investors.

Mallam urged authorities to assess shareholder structures, funding sources, tax compliance and actual business operations when distinguishing unlawful arrangements from legitimate enterprises. The private sector also called for city planning updates and improved migrant-labour management for Phuket’s tourism, hospitality and service industries.

Phuket MP Chalermpong Saengdee submitted information on five companies suspected of nominee activity and urged further checks into their shareholder links, funding sources and business models.

Despite the crackdown, Phuket continues to attract investment. The Board of Investment approved 31 projects worth B12.6 billion in 2025, with foreign investment exceeding B5 billion, while exports increased by more than 25%. In 2026, the province generated B263 billion in tourism revenue and received support from nine newly approved BOI projects.

The committee plans to submit policy recommendations to the government on tackling nominee businesses and illegal land ownership while maintaining opportunities for legitimate foreign investors.