The Thai government has issued a stern warning to citizens against acting as nominees for foreign investors, particularly in tourism-related businesses, or risk facing serious legal consequences.
Punishments for those involved include imprisonment, substantial fines, asset seizures, and the revocation of business licences.
Deputy Government Spokesman Anukul Pruksanusak said that some Thai nationals have either knowingly or unknowingly allowed their names to be used by foreigners to illegally operate businesses in Thailand.
This practice violates the Foreign Business Act of 1999, which prohibits foreign ownership in specific sectors unless granted permission under the law.
According to data from the Department of Business Development, such nominee arrangements are most commonly found in tourism-heavy provinces, including Phuket, Chon Buri, Bangkok, and Chiang Mai.
Businesses under investigation span a range of sectors, such as restaurants, hotels, resorts, real estate, and logistics.
“These disguised business operations are set up to bypass legal restrictions by using Thai nationals as nominal shareholders or operators, without actual investment or participation,” Mr. Anukul said.
“This leads to unfair competition, a lack of transparency, and even the potential for Thailand to be used as a hub for money laundering — damaging the country’s business reputation.”
Mr. Anukul pointed to a recent case in Phuket, where the Criminal Court convicted 23 individuals and entities for engaging in nominee practices.
Each received a fine of 200,000 baht, a two-year suspended prison sentence, and one year of probation. The court also ordered the dissolution of the companies involved.
He also outlined the penalties for those assisting or holding shares on behalf of foreigners. These include imprisonment of up to three years and fines ranging from 100,000 to 1,000,000 baht.
Continued non-compliance with court orders may result in daily fines of 10,000 to 50,000 baht.
Assets or shares held through nominee arrangements may be confiscated if linked to illegal operations. In addition, businesses found to be using nominees risk having their licences revoked and being permanently barred from operating in Thailand.
