The Thai government is intensifying market supervision and ramping up efforts to crack down on illegal nominee shareholders and “fraud accounts.” The Thai business community is facing stricter compliance requirements. Recently, while targeting enterprises with illegal nominee shareholders, the government has focused particularly on “fraud accounts.” These accounts not only serve as tools for illegal transactions but also provide cover for criminal activities. In response to these problems, the Thai government has taken a series of actions. It has called on all businesses to follow laws and regulations when registering companies in Thailand to ensure legality and compliance.

Cross – departmental collaboration to crack down on companies with nominee shareholders

The Deputy Prime Minister of Thailand stated that the government has coordinated multiple departments. These include the Bangkok Metropolitan Administration (BMA), the Immigration Bureau, the Customs Department, the FDA, the OCPB, the Royal Thai Police (RTP), and others. Together, they are carrying out operations to crack down on Thai enterprises, especially those bypassing the Foreign Business Act through nominee shareholders.

Enterprises with nominee shareholders use Thai citizens’ names to hold shares. However, they are essentially controlled by foreigners, violating Thailand’s foreign investment laws.

From September 1, 2024, to January 31, 2025, relevant departments investigated and dealt with 820 nominee shareholders. The total losses amounted to over 12.495 billion Thai baht. The main industries and case types involved are as follows:

• Tourism and related services: 104 cases, with losses of approximately 596 million Thai baht.
• Real estate and related services: 228 cases, with losses of approximately 8.89 billion Thai baht.
• Land transportation services: 11 cases, with losses of approximately 3.2 million Thai baht.
• Other services: 477 cases, with losses of approximately 2.976 billion Thai baht.

“Fraud accounts” serve as tools for criminal activities

In addition to cracking down on companies with nominee shareholders, the Thai government is also focusing on “fraud accounts.” The Anti-Cyber Crime Operations Center (AOC) of the Ministry of Digital Economy and Society has provided a list with the personal information of 204,000 Thai and foreign individuals. These individuals are suspected of being involved in illegal activities with 1,159 Thai enterprises. Some of these enterprises conduct transactions and capital flows through “fraud accounts”, which helps cover up illegal acts.

Regarding these “fraud accounts,” the Department of Special Investigation (DSI) will launch a special investigation to pursue the illegal acts of relevant individuals and enterprises. The government has stated that it will intensify investigations nationwide. It will thoroughly examine all companies with nominee shareholders and enforce strict laws against substandard imported goods. Additionally, the government will shut down foreign enterprises suspected of illegal activities to ensure a healthy and fair market.

New System and Legal Amendments Strengthen Supervision

This series of actions by the Thai government serves as a reminder to all businesses planning to register companies in Thailand of the importance of compliant operations. With the increasingly severe crackdown on companies with illegal nominee shareholders and “fraud accounts”, any attempt to bypass laws and regulations and engage in illegal operations may face serious legal consequences.

Therefore, when registering a company, businesses must ensure that all documents and procedures meet the requirements of Thai laws, and avoid using false addresses or non – compliant registration processes.

The Thai Ministry of Commerce has launched a new monitoring system, especially the IBAS system for abnormal business activities. This system will help effectively monitor the operation of enterprises and detect potential illegal acts in advance. In addition, the Thai government plans to add relevant provisions on illegal acts of nominees to the anti – money laundering law, which means that the actions of all nominee shareholders will face stricter scrutiny and penalties.

Register your company legally and compliantly to avoid legal risks

When conducting business activities in Thailand, especially when registering a company, businesses must ensure that all their operations comply with local laws and regulations. A legal company registration not only helps businesses avoid legal risks but also enhances market trust and improves the brand image. Therefore, businesses should choose compliant registration methods and avoid relying on illegal intermediaries or non – compliant operation methods.

To prevent their companies from being exposed to legal risks, businesses should also ensure that their company registration addresses are genuine and valid, and have not been used illegally by others. The Thai Ministry of Commerce provides an official platform through which businesses can check on the official website whether their registration addresses have been maliciously used.

For businesses registering companies in Thailand, we would like to remind you to stay vigilant and not easily believe the false promises of illegal intermediaries. Some unscrupulous individuals often intervene by deceiving businesses, providing false registration services, and even helping them bypass laws and regulations, which can lead to enterprises being mired in legal risks. Therefore, when registering a company, businesses must prepare compliant materials and choose legal and reputable channels and professional institutions for consultation and processing. Only by legally preparing the materials for company registration can the company smoothly avoid future legal troubles.

Only by operating in compliance can businesses gain a foothold in the Thai market

The Thai government is strengthening the supervision of enterprises with illegal nominee shareholders, false accounts, and non – compliant imported goods. When registering companies in Thailand, businesses must be vigilant to ensure that all business activities and registration processes are legal and compliant. Only by abiding by local laws and regulations can they gain a foothold in the Thai market and avoid potential legal disputes and financial losses in the future.

The business environment in Thailand is evolving towards greater transparency and standardization. Businesses should actively adapt to these changes and develop and grow through legal and compliant channels.