Phuket Police Launch Major Crackdown on Illegal Nominee Businesses

Authorities in Phuket have stepped up enforcement against so-called nominee business structures, carrying out coordinated raids across multiple locations on the island as part of a wider national initiative.

The operation was overseen by Sinlert Sukhum, who presented the results during a press briefing attended by officials and media representatives. In total, eight sites were inspected, including businesses in sectors such as car rentals, property services, and childcare. The checks were conducted in several key areas, including Patong, Chalong, Cherng Talay, Karon, Kamala, and Sakhu.

Investigators focused on reviewing corporate records in detail. This included examining business registrations, operating licenses, shareholder compositions, capital declarations, and financial transactions. The goal was to uncover cases where Thai nationals may have been listed as shareholders on behalf of foreign investors, a practice prohibited under Thai law.

Evidence collected during the inspections will now be used to support legal proceedings and expand the scope of the investigation. Officials emphasized that any confirmed violations will lead to prosecution, targeting not only the individuals acting as nominees but also the companies and foreign beneficiaries involved.

According to police, seven similar cases have already been brought before the courts. Some have resulted in convictions, while others remain under judicial review.

Authorities also warned the public about the legal risks of participating in such schemes. Under the Foreign Business Act of 1999, acting as a nominee shareholder can result in penalties of up to three years in prison, fines between 100,000 and 1 million baht, or both. Additional daily fines may be imposed for ongoing violations.

In more serious cases, courts have the authority to order businesses to cease operations, revoke registrations, or restructure ownership to comply with the law.

Members of the public are encouraged to report any suspicious activity to local police or contact the 191 emergency hotline, which is available 24/7.