Phuket ranks eighth in Thailand for high-risk nominee business cases
DBD Director-General Poonpong Naiyanapakorn said the department had identified 6,551 foreign-owned legal entities across Thailand considered at risk of violating the Foreign Business Act B.E. 2542 (1999).
Phuket ranked eighth in Thailand with 68 high-risk nominee business cases identified in a nationwide crackdown announced on May 10, as the Department of Business Development stepped up scrutiny of foreign-owned firms suspected of violating the Foreign Business Act. DBD Director-General Poonpong Naiyanapakorn said 6,551 foreign-owned legal entities across the country had been flagged, focusing on companies in which foreigners hold 50% or more of shares and may be operating without required permission.
Bangkok, Chonburi and Samut Prakan top the list
Bangkok recorded the highest number of high-risk entities at 3,934, followed by Chonburi with 1,084 and Samut Prakan with 413. Officials said enforcement is concentrating on tourist and economic zones, especially sectors where foreign ownership is restricted or where Thai operators are deemed not yet ready to compete.
Real estate trading drew the highest scrutiny nationwide, with 217 entities flagged, followed by restaurant and food service businesses with 204 under investigation. The Foreign Business Act groups restricted activities into three categories, covering outright bans such as land trading, sectors tied to national security and natural resources that need Cabinet approval, and businesses including tourism, hotels, retail, wholesale and professional services.
Investigators widen focus to support networks and company records
The DBD said suspected illegal land ownership cases, or income from land rentals earned without proper authorisation, will be sent directly to the Land Department for legal action. The operation is being carried out with the Department of Special Investigation, the Royal Thai Police and tax authorities.
Authorities are also targeting accountants, auditors and accounting firms suspected of helping conceal ownership or create false nominee structures. Violations can bring up to three years in prison, fines from B100,000 to B1 million, or both.
Separately, the DBD said Thailand had 2.08 million registered legal entities as of May 4. Of those, 992,890 were active, 397,463 had ceased operations and 649,992 had been struck off as dormant after failing to submit financial statements or showing no registration activity for three consecutive years.
Source: https://www.thephuketnews.com/phuket-ranks-8th-for-high-risk-nominee-businesses-100161.php
