Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, Ministry of Commerce, disclosed that on August 10, 2026, he assigned M.L. Phuthong Thongyai, Deputy Director-General of the Department of Business Development, along with a nominee suppression team from the Illegal Business Prevention and Suppression Division, to conduct a raid in Hua Hin District, Prachuap Khiri Khan Province. This operation was conducted in collaboration with the Royal Thai Police, led by Police General Samran Nualma, Governor of Prachuap Khiri Khan Province; the Internal Security Operations Command (ISOC); the Tourist Police; the Immigration Bureau; the Department of Special Investigation; the Prachuap Khiri Khan Provincial Commerce Office; and other relevant agencies.

Director-General Poonpong further stated, "This operation in Hua Hin was a proactive measure to search for and arrest offenders violating the law on foreign business operations using nominees, who employ Thai nationals to assist, support, or participate in illegal business activities with foreigners. The results of the operation revealed several targeted companies that had registered as legal entities using Thai nationals as directors and holding 100% of the shares. Subsequently, within six months, they registered changes to their shareholder structure, bringing in foreign nationals as directors alongside Thai directors. This resulted in the proportion of foreign shareholders remaining below 50%, while the proportion of Thai shareholders decreased." "The number of nominees (considered as Thai nominees) stands at 51%, allowing the legal entity to retain its status as a Thai legal entity."

"The investigation also revealed that the Thai and foreign shareholders did not know each other or have any prior connection, which is highly unusual for business practices. The operation included searches at 15 locations. The Royal Thai Police has arrest warrants for 45 foreigners and summonses for 39 Thais. 13 individuals have been arrested based on these warrants, totaling 33 cases with damages exceeding 300 million baht. All companies are involved in the ownership and leasing of real estate."

"The actions of these legal entities reflect an attempt to circumvent the law. It appears that in the past, loopholes were used to register legal entities using Thai nominees to assist and support foreigners in conducting business and owning real estate in violation of the law. Since August 1, 2026, when the Department of International Trade Promotion issued an order to strengthen measures for the registration and modification of legal entities that rely on nominees, the number of registrations using Thai shareholders jointly with foreigners, where the foreigner holds less than 50% of the shares, has significantly decreased. Only 5 such cases have been found. However, even though the number is small, the Department will continue to investigate and monitor to prevent the registration and business operations of foreigners." "We will absolutely not allow the exploitation of Thai people or the seizure of Thai real estate," said Director-General Poonpong.

"Furthermore, the offense of using a Thai national as a nominee and assisting in the commission of an offense under the Foreign Business Act B.E. 2542 (1999) is punishable by imprisonment for a term not exceeding 3 years, or a fine of 100,000 to 1,000,000 baht, or both. The court may also order the cessation of the business operation or the termination of shareholding that violates the law," he concluded.

#SuperDBD #DepartmentofBusinessDevelopment #MinistryofCommerce

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