Thailand flags Phuket, Pattaya, Samui for nominee business finance probes

Thailand’s Department of Business Development on May 18 identified Phuket, Pattaya and Koh Samui as high-risk areas for suspected nominee businesses, with officials moving to trace the finances of Thai shareholders in suspicious firms. The agency said the checks are aimed at proving whether Thai partners made real investments or are holding shares on behalf of foreign nationals, while tighter registration rules have already cut risky new entities by 75%.

Foreign shareholding data and tighter registration scrutiny

Department figures showed 29,646 limited companies registered in Phuket, with foreign shareholders involved in 11,626 of them. In Bang Lamung district, which includes Pattaya, 33,314 companies were registered, with 19,910 involving foreign shareholders, while Koh Samui had 12,050 companies with 8,213 involving foreign shareholders.

Koh Phangan recorded 3,754 companies with 2,381 involving foreign shareholders, compared with 1,685 and 346 in Phang Nga, 3,587 and 749 in Krabi, 4,061 and 2,081 in Hua Hin, and 139 and 50 in Pai.

Officials said red flags include companies where foreigners hold the maximum legal share proportion but are still given signatory authority, and cases where Thai shareholders or directors appear repeatedly across multiple companies in unusual patterns. Violations under Sections 36 and 37 of the Foreign Business Act carry penalties of up to three years in prison and fines of B300,000 to B1 million.

Two orders took effect on Jan. 1 and April 1, 2026, requiring financial proof from Thai shareholders in risk groups and written confirmation that all investors paid in real capital, with registrations to be rejected immediately if no genuine investment is found.

Source: https://www.thansettakij.com/economy/659332