Crackdown targets use of Thai proxiesIn October last year, officials of the Department of Business Development raid firms in Koh Phangan district of Surat Thani, which were suspected of operating as nominee businesses and using Thai nationals as proxy shareholders for foreigners. Photo by the departmentThe government is tightening controls on nominees by introducing new measures to prevent foreigners from using Thais as proxies to operate businesses, effective April 1. Previously the department required businesses considered high-risk, such as those with foreign shareholding of less than 50% or with foreign directors, to provide financial evidence of Thai shareholders to verify actual investment. Providing false information constitutes an offence under the Criminal Code and may violate the Foreign Business Act of 1990, which carries penalties of both imprisonment and fines. "The government is working to suppress nominee arrangements to ensure fair business competition and to strengthen confidence in Thailand's economy," she said.

Source: Bangkok Post March 24, 2026 23:17 UTC