{"id":3192,"date":"2025-10-28T12:42:14","date_gmt":"2025-10-28T12:42:14","guid":{"rendered":"https:\/\/www.iuraslovakia.sk\/?p=3192"},"modified":"2025-10-28T13:34:42","modified_gmt":"2025-10-28T13:34:42","slug":"the-end-of-foreign-business-and-the-end-of-company-nominations","status":"publish","type":"post","link":"https:\/\/www.iuraslovakia.sk\/en\/legal-blog\/the-end-of-foreign-business-and-the-end-of-company-nominations\/","title":{"rendered":"The purge of foreign business and the end of \u201eNominee\u201c companies?"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"3192\" class=\"elementor elementor-3192\" data-elementor-post-type=\"post\">\n\t\t\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-94fde1c e-flex e-con-boxed e-con e-parent\" data-id=\"94fde1c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e863d6c elementor-widget elementor-widget-heading\" data-id=\"e863d6c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">The purge of foreign business and the end of \"Nominee\" companies in Thailand?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-69d340e elementor-widget elementor-widget-text-editor\" data-id=\"69d340e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The latest large-scale police raids in Phuket and earlier on Koh Phangan confirm that Thailand is moving into <b>the active enforcement phase of its Foreign Business Act (FBA) of 1999<\/b>. This sends a clear signal to every foreign investor and business operator in Thailand: <b>The state is taking control of key sectors, especially tourism.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-4f02c0b e-flex e-con-boxed e-con e-parent\" data-id=\"4f02c0b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ad5be75 elementor-widget elementor-widget-heading\" data-id=\"ad5be75\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Progress so far<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-613855d e-flex e-con-boxed e-con e-parent\" data-id=\"613855d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a09bc66 elementor-widget elementor-widget-text-editor\" data-id=\"a09bc66\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Last week, a series of coordinated raids in Patong (Phuket) hit five establishments, including restaurants, motorbike rentals and travel agencies, that were linked to foreign nationals. The operation, led by immigration police and supported by top brass such as the Crime Suppression Department (CSD), led to <b>the arrest of four foreigners<\/b> and the seizure of extensive evidence. A few days before the Phuket action, similar raids took place on Koh Phangan and Koh Samui. There were also arrests of a number of foreigners and the\u00a0<\/p><p>The main objective of the raids was clear: <b>break the networks of \u201enominee\u201c companies<\/b> (so-called planted persons).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c141507 elementor-widget elementor-widget-heading\" data-id=\"c141507\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Nominee companies: what is against the law?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-abd543f elementor-widget elementor-widget-text-editor\" data-id=\"abd543f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Thailand's Foreigners Business Act (FBA) strictly limits foreign ownership or control in 43 service categories. This includes most of the key tourism operations such as:<\/p><ul><li><p><b>Restaurants<\/b><\/p><\/li><li><p><b>Motor vehicle rental<\/b><\/p><\/li><li><p><b>Tourist services and agencies<\/b><\/p><\/li><li><p><b>Hairdressers and barbers<\/b><\/p><\/li><\/ul><p><b>Nominee arrangement<\/b> arises where a foreign person actually controls and profits from the business, but formally there is a majority Thai shareholder (often with a 51 % shareholding) registered in the Thai company whose sole purpose is to circumvent the statutory restrictions. In doing so, the Thai person <b>has no real control<\/b> over the company or benefit from it.<\/p><p>In the Phuket raids, it was found that foreign operators directly managed the day-to-day operations - from cooking and serving customers to cash collection - while the Thai \u201eowners\u201c were only on paper. This the authorities qualify as <b>illegal business in a prohibited sector.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dcb144c elementor-widget elementor-widget-heading\" data-id=\"dcb144c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/www.thaiexaminer.com\/thai-news-foreigners\/2025\/10\/13\/crackdown-on-foreign-business-on-koh-samui-using-thai-firms-with-nominees-shareholders-focus-on-villas\/\">Crackdown on foreign business on Koh Samui using firms with nominees shareholders. Focus on villas. (Thai Examiner October 13, 2025)<\/a><\/h5>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-d46f4b0 e-flex e-con-boxed e-con e-parent\" data-id=\"d46f4b0\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-328b852 elementor-widget elementor-widget-heading\" data-id=\"328b852\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Legal and political implications<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-92a5c07 e-flex e-con-boxed e-con e-parent\" data-id=\"92a5c07\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d33ab7d elementor-widget elementor-widget-text-editor\" data-id=\"d33ab7d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><strong>1. National priority<\/strong><\/h5><p>The operation in Phuket, Koh Phangan and Koh Samui is not a local initiative. This has been confirmed by top police officials and was <b>a direct order from interim Prime Minister Anutin Charnvirakul<\/b>. FBA enforcement has become <b>a national political priority<\/b> in order to protect Thai livelihoods and <b>regain control<\/b> over the lucrative tourist industry.<\/p><h5><strong>2. Coordinated efforts<\/strong><\/h5><p>It's important to note that this time there is not just one component at work. In Phuket, Immigration, CSD, Provincial Police and Tourist Police have joined forces. This <b>high level of coordination<\/b> streamlines evidence gathering and means that operations will be <b>continue in other key tourist centres<\/b> such as Chiang Mai, Pattaya and Koh Samui.<\/p><h5><strong>3. Severe penalties are imminent<\/strong><\/h5><p>Aliens accused of operating a restricted business without a license or using a nominee arrangement face:<\/p><ul><li><p><b>High fines<\/b> (up to 1 million THB).<\/p><\/li><li><p><b>Possible imprisonment.<\/b><\/p><\/li><li><p><b>Deportation and banned from entering Thailand.<\/b><\/p><\/li><\/ul><p>In addition, authorities are thoroughly investigating the company's financial transactions, lease agreements and records to pursue charges against all parties involved - <b>including Thai nominee.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8d0ce6c elementor-widget elementor-widget-heading\" data-id=\"8d0ce6c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/www.thaiexaminer.com\/thai-news-foreigners\/2025\/10\/27\/crackdown-aimed-at-upending-foreign-business-concerns-moves-from-koh-phangan-to-phuket-four-arrested\/\">Phuket Raids: Crackdown aimed at upending foreign business trade moves from Koh Phangan to Phuket (Thai Examiner, Oct 27, 2025)<\/a><\/h5>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cebd836 elementor-widget elementor-widget-heading\" data-id=\"cebd836\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Koh Phangan: Address where 100 companies are located. Thailand tightens noose around \"Nominee\" networks.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-68bb8fd e-flex e-con-boxed e-con e-parent\" data-id=\"68bb8fd\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ec5b488 elementor-widget elementor-widget-text-editor\" data-id=\"ec5b488\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The latest investigation on Koh Phangan island (Surat Thani province) has revealed the extent of a problem that has undermined the Thai economy for years: <b>illegal \u201enominee\u201c arrangements<\/b> (<i>planted persons<\/i>). The finding that <b>more than 100 companies<\/b> is registered at a single address, serves as shocking evidence of a comprehensive and widespread violation of Thailand's Foreigners Business Act (FBA).<\/p><p>These findings are not just a local problem, but reflect <b>a national law enforcement strategy<\/b>, which is personally enforced by the National Police Chief and the Department of Business Development (DBD).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-2615488 e-flex e-con-boxed e-con e-parent\" data-id=\"2615488\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6b83450 elementor-widget elementor-widget-text-editor\" data-id=\"6b83450\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5><strong>1. From address to tax evasion<\/strong><\/h5><p>The investigation revealed that Surat Thani is the second riskiest area for nominee arrangements in the country. Authorities are targeting elaborate structures:<\/p><ul><li><p><b>Audit of accounting firms:<\/b> Suspicion has fallen on accounting companies where the sole Thai shareholder figures in dozens (in one case in <b>66<\/b>) of different companies, which is a typical pattern for <i>nominee<\/i> Structure.<\/p><\/li><li><p><b>Luxury real estate:<\/b> Luxury development projects that operate without the required hotel licenses have come under scrutiny. In the case of the project <b>SITHAYA BEACHFRONT VILLA<\/b> suspected tax evasion and covert land ownership worth over THB 152 million is being investigated, with the investigation looking at how Israeli investors' shares were changed to circumvent the maximum 49 % foreign ownership.<\/p><\/li><\/ul><p>The DBD has made it clear that their priority is to prosecute Thai citizens who serve as fronts, as this practice distorts the economic environment and harms legitimate Thai businesses.<\/p><h5><strong>2. Four points of a proactive policing strategy<\/strong><\/h5><p>The National Police Chief, General Kittirat Phanphet, has set <b>a comprehensive strategy<\/b> focusing not only on Koh Phangan, but also on Bangkok, Phuket, Chiang Mai and Pattaya. These are critical points for foreign clients:<\/p><ol start=\"1\"><li><p><b>Stricter screening at the border:<\/b> Stopping entry for <i>blacklisted<\/i> persons.<\/p><\/li><li><p><b>Inspections of residences:<\/b> The police will proactively check the accommodation of foreigners.<\/p><\/li><li><p><b>Visa verification and sanctions:<\/b> Thorough checks before and after visa extensions are approved (especially for at-risk nationalities), arrests after visa expiry (<i>overstayers<\/i>) a <b>fining landlords<\/b>, who illegally house them.<\/p><\/li><li><p><b>Coordinated raids and information sharing:<\/b> Local intelligence gathering and cooperation with international actors such as <b>Interpol<\/b>.<\/p><\/li><\/ol><p>This strategy changes the game - moving from reactionary controls to <b>proactive monitoring of the movement and stay of foreigners<\/b>.<\/p><h5><strong>3. Second pillar: the Employment Act and the 40 restricted occupations<\/strong><\/h5><p>The intervention concerns not only the Commercial Code for foreigners, but also the Labour Code. The Director of the Employment Department highlighted the nationwide controls aimed at <b>adherence to the list of 40 professions reserved exclusively for Thai citizens<\/b>. These include, for example:<\/p><ul><li>Guide services (<i>Tour Guiding<\/i>)<\/li><li>Massage services (<i>Massage Therapy<\/i>)<\/li><li>Some retail activities<\/li><\/ul><p><b>The penalties are severe:<\/b><\/p><ul><li><p><b>Foreign workers:<\/b> Fines, <b>Deportation<\/b> a <b>two-year ban<\/b> obtaining a new work permit.<\/p><\/li><li><p><b>Employers:<\/b> Fines up to <b>100 000 THB per illegal worker<\/b>, prison and <b>three-year ban<\/b> employment of foreigners.<\/p><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c3002a2 elementor-widget elementor-widget-heading\" data-id=\"c3002a2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/www.khaosodenglish.com\/news\/2025\/10\/27\/over-100-companies-share-single-address-in-koh-phangan-probe\/\">Koh Phangan Probe: Over 100 Companies Share Single Address in Koh Phangan Probe (Khaosod English, 27 October 2025)<\/a><\/h5>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-element elementor-element-d739391 e-flex e-con-boxed e-con e-parent\" data-id=\"d739391\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8aac55c elementor-widget elementor-widget-text-editor\" data-id=\"8aac55c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Any foreign business operating in Thailand, especially in the tourism sectors, must immediately review its legal structure. Cooperation between DBD, police and immigration signals zero tolerance. It is no longer just fines that pose a risk, but also <b>deportation, prosecution<\/b> a <b>loss of control over investments<\/b>.<\/p><p><b>Don't hesitate. If your business setup does not match your actual control and profit, act now.<\/b> Our firm provides a comprehensive FBA and employment law compliance review to ensure the legal sustainability of your business in Thailand.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>\u010cistka zahrani\u010dn\u00e9ho podnikania a koniec &#8222;Nominee&#8220; spolo\u010dnost\u00ed v Thajsku? Najnov\u0161ie rozsiahle policajn\u00e9 razie na Phukete a predt\u00fdm na Koh Phangan potvrdzuj\u00fa, \u017ee Thajsko prech\u00e1dza do akt\u00edvnej f\u00e1zy vynucovania svojho Obchodn\u00e9ho z\u00e1kona pre cudzincov (Foreign Business Act, FBA) z roku 1999. Pre ka\u017ed\u00e9ho zahrani\u010dn\u00e9ho investora a prev\u00e1dzkovate\u013ea podniku v Thajsku to znamen\u00e1 jasn\u00fd sign\u00e1l: \u0161t\u00e1t preber\u00e1 [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":3167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[37,48,47,43,44,46],"class_list":["post-3192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pravne-noviny","tag-firma-v-thajsku","tag-nominee-structure-thailand","tag-nominee-thajsko","tag-pravnik-thajsko","tag-thajske-pravo","tag-zalozenie-spolocnosti-thajsko"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>\u010cistka zahrani\u010dn\u00e9ho podnikania a koniec &quot;Nominee&quot; spolo\u010dnost\u00ed? - iura Slovakia<\/title>\n<meta name=\"description\" content=\"Pre ka\u017ed\u00e9ho zahrani\u010dn\u00e9ho investora a prev\u00e1dzkovate\u013ea podniku v Thajsku to znamen\u00e1 jasn\u00fd sign\u00e1l: \u0161t\u00e1t preber\u00e1 kontrolu nad k\u013e\u00fa\u010dov\u00fdmi sektormi.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.iuraslovakia.sk\/en\/legal-blog\/the-end-of-foreign-business-and-the-end-of-company-nominations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u010cistka zahrani\u010dn\u00e9ho podnikania a koniec &quot;Nominee&quot; 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