The Commerce Ministry has vowed to intensify its crackdown on the illegal use of Thai nominees by foreign investors as…

Blitz paying off as 'at-risk' firms plunge

PUBLISHED : 5 Jul 2026 at 06:31

The Commerce Ministry has vowed to intensify its crackdown on the illegal use of Thai nominees by foreign investors as part of a broader effort to protect fair competition and the country's economic interests.

Its Department of Business Development (DBD) said nominee shareholding had become a long-standing problem that distorts market competition and disadvantages legitimate businesses operating in Thailand. The number of companies considered at risk of nominee arrangements had risen steadily over the past two decades, from 523 firms in 1998 to 11,746 in 2025.

As of June 23, there were 119,297 companies with foreign shareholdings of between 0.01% and 49.99%, a category regarded as vulnerable to nominee abuse.

Stricter screening has seen the number of newly registered firms considered at risk fall by more than 65% between January and May this year, compared with the same period last year.

The ministry attributed the decline to tighter registration requirements, including enhanced scrutiny of companies with foreign shareholders or directors, as well as new rules requiring businesses to verify the source of their investment.

Prime Minister Anutin Charnvirakul has instructed the ministry to examine business registrations involving foreign investors and consider amendments to laws and regulations to better address nominee practices. The DBD said it had strengthened inter-agency cooperation by signing a memorandum of understanding with 23 government agencies in April.

Authorities have also referred thousands of suspected cases to other agencies for further investigation. These include nearly 14,800 companies sent to the Revenue Department for tax inspections, more than 17,500 referred to the Department of Lands to examine property ownership, and over 2,700 forwarded to police task forces for in-depth investigations. More than 2,200 cases have also been pursued by the Economic Crime Suppression Division and the Department of Special Investigation.

Since October last year, officials have conducted inspections in 35 spots in 11 provinces, targeting sectors considered vulnerable to nominee arrangements, including construction, tourism, real estate, accounting, legal services, restaurants, factories and steel trading. A further round of stricter registration measures is expected to take effect on Aug 1 following a public consultation.