More Than 400 Phuket Companies Investigated Over Suspected Nominee Ownership

Thai authorities have launched an extensive review of business ownership in Phuket, with more than 400 companies coming under investigation for suspected use of nominee shareholders to conceal foreign control.

Deputy Interior Minister Polpee Suwanachawi said the inquiry, carried out jointly with the Ministry of Commerce, has so far examined more than 10,000 registered businesses across the province. Investigators believe a number of companies may have used Thai nationals as proxy shareholders to bypass legal restrictions on foreign ownership of land and businesses.

According to Polpee, any company found to have violated the law will face legal consequences. Those responsible could be ordered to dispose of illegally held land while also facing both criminal and civil proceedings.

The investigation is also focusing on questionable land documentation. Officials are reviewing cases in which land titles may have been unlawfully expanded, such as increasing plot sizes beyond their original boundaries, or issued for land located within protected forest reserves or agricultural reform zones.

The Department of Lands has been instructed to conduct a comprehensive review of historical land records to determine when irregularities occurred and whether government officials were involved in approving them.

Authorities estimate that between 30% and 40% of businesses operating in Phuket may not be fully compliant with Thai law. However, Polpee emphasized that the government does not intend to indiscriminately shut down businesses, warning that such action could harm Phuket's tourism industry, local economy, and Thai employees working for those companies.

Instead, authorities will investigate why illegal businesses were allowed to operate and consider appropriate legal remedies, including business restructuring or changes in ownership where permitted by law.

The deputy minister said he plans to visit Phuket within the next two weeks to monitor progress personally. He stressed that every case will be handled through proper legal procedures and rejected any suggestion that authorities would act outside the law.

Provincial officials have also been instructed to strengthen enforcement and prevent influential groups from exploiting legal loopholes. In addition, parliamentary committees studying the nominee issue will be invited to participate in discussions aimed at developing long-term and transparent solutions.

"Our objective is not to rewrite the law for those who violate it," Polpee said. "We want every business to operate within a fair and lawful system."