Commerce Ministry seeks cooperation from 43 embassies in crackdown on nominee companies
Thailand’s Commerce Ministry has sought cooperation from 43 embassies in its nominee crackdown, sharing information on more than 100,000 limited companies with foreign directors or shareholders.
Poonpong Naiyanapakorn, director-general of the Department of Business Development (DBD), said the data covered 48 nationalities.
“The information sent to all 43 embassies is only preliminary, general information obtained through checks carried out within the department’s authority. It does not mean that these businesses or investors have acted unlawfully or committed an offence involving Thai nationals holding shares on their behalf as nominees.”
The embassies have been asked to help their nationals comply with Thailand’s business regulations. The ministry said the cooperation would help build investor confidence and promote lawful investment.
Nominee crackdown includes nationwide checks
The DBD is working with law enforcement agencies to inspect businesses at risk of using Thai shareholders as nominees for foreigners to circumvent the law.
Company information was grouped into three categories by foreign shareholding: 0.01–49.99%, 50–99.99% and 100%.
Poonpong said Thai nationals accepting money or benefits to act as nominees could face up to three years in prison, a fine of 100,000 to 1 million baht, or both, under Section 36 of the Foreign Business Act 1999. Foreigners operating without the required permission face the same penalties under Section 37, he said.
He urged Thai nationals assisting unlawful nominee arrangements to stop and said the department remained committed to supporting legitimate investors.
“We are ready to provide full assistance to foreign businesspeople and investors who come to Thailand to conduct business honestly.”