Thailand intensifies crackdown on foreign nominee businesses

The Thai government has intensified efforts to combat the use of “nominees”—Thai citizens acting as front representatives for foreign capital—to ensure transparent and fair trade competition. The Ministry of Commerce has designated the prevention and suppression of illegal businesses and products as one of nine urgent short-to-medium-term missions.

Since August 1, 2026, authorities have expanded their oversight from the initial legal entity establishment phase to include post-registration structural changes. This includes monitoring shifts in shareholders, directors, or authorized signatories to identify risks throughout a legal entity’s lifecycle. Under these criteria, applicants may be required to provide investment details and financial evidence to verify the true source and capacity of their funds.

Deputy Government Spokesperson Lalida Pheriswiwattana emphasized that being flagged as a risk group does not automatically imply wrongdoing, nor does legal foreign shareholding constitute a nominee arrangement. Officials must verify facts and evidence on a case-by-case basis to avoid penalizing legitimate businesses. The initiative involves a collaborative framework between 23 agencies to integrate data and surveillance.