Thai Nominee Scheme Exposed: Foreigners Caught Fronting Businesses

Thai authorities are intensifying a crackdown on foreign-owned businesses operating through illegal nominee arrangements. These schemes involve foreigners falsely registering companies with Thai nominees as majority owners to circumvent the Foreign Business Act, which limits non-citizen stakes to 49%.

Investigations revealed nearly 500 businesses, ranging from nail salons to cannabis farms, were allegedly registered using this illicit method. An Israeli woman's company in Krabi, registered as a nail salon, is cited as an example of a front for an OnlyFans business. Authorities have identified 50,000 foreign-linked companies for further examination.

Legal experts report a significant increase in calls from concerned foreign investors and business owners fearing asset seizure and criminal charges. Prime Minister Anutin Charnvirakul has vowed to prosecute illegal operations, highlighting instances where single individuals allegedly hold shares in over 200 companies. This enforcement push follows a recent audit of resort islands Koh Samui and Koh Phangnan, where about 70% of registered entities had foreign partial ownership.

Authorities have referred 28 foreign suspects to prosecutors and confiscated land worth approximately 150 million baht ($4.5 million) in Phuket and Surat Thani provinces. The crackdown also addresses complaints from local businesses about being undercut by foreign investors, particularly in the short-term rental market, impacting Thai competitiveness and ownership opportunities.