Thailand cracks down on foreign companies using fig leaf of local ownership
Summary
Thailand is investigating nearly 500 businesses registered by foreigners who used Thai citizens as fake majority owners to evade the law limiting foreign ownership. Authorities are now checking companies more closely and have referred foreign suspects and seized land linked to these illegal setups.Key Facts
- Foreigners in Thailand are generally not allowed to own more than 49% of local companies under the Foreign Business Act.
- Some foreigners have used Thai "nominee" owners who claim over 51% ownership but do not actually run the business.
- Around 500 companies, including salons and cannabis farms, were registered this way through one accounting firm.
- The government used inspections and artificial intelligence to identify 50,000 foreign-linked companies for further checks.
- Legal firms report many foreign clients are worried about losing investments or facing criminal charges.
- Thai Prime Minister Anutin Charnvirakul is leading efforts to crack down on these fraudulent company registrations.
- Authorities arrested 28 foreigners and two Thai nationals related to these illegal businesses and confiscated property worth $4.5 million.
- On some resort islands, 70% of registered legal entities are partly owned by foreigners, though foreign ownership alone is not illegal.
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