The Department of Business Development (DBD) expanded their crackdown on nominee businesses in Phuket and Krabi, uncovering suspected illegal assets worth almost 1 billion baht.
The Director-General of the DBD, Phunpong Naiyanapakorn, said inspections carried out on June 20 were part of the government’s urgent campaign to tackle nominee arrangements in major tourism and investment hubs.
In Phuket, investigators found 10 companies suspected of operating through nominee structures and being linked to illegal land ownership. The companies were connected to four land plots with an estimated value of 116 million baht.
Authorities also identified 39 additional companies requiring further investigation. These firms were linked to 52 land plots worth around 115 million baht. The total value of assets under investigation in Phuket exceeds 231 million baht.
One of the main inspection targets was a business in Patong which was registered in 2019 and operated hotel, resort, condominium and motorcycle rental services.
The company had previously operated a tourism business but later lost its licence due to regulatory violations involving board composition requirements.
According to the DBD, Thai directors and shareholders connected to the business were listed as shareholders in three other companies and directors in five other companies. One Thai shareholder admitted to holding shares on behalf of an Israeli investor.
Officials also found related businesses at the same location, including a restaurant and a cannabis shop.
In Krabi, authorities identified nine companies suspected of nominee activity. These businesses were linked to 17 land plots with an estimated value of 209 million baht.
Investigators also found eight additional companies requiring further examination. These companies were linked to eight land plots worth around 290 million baht. The total value of assets under investigation in Krabi exceeds 499 million baht.
One case involved Tropical House Co, a construction and property development company linked to Polish investors. The company reportedly develops pool villas in a prime area of Krabi and has registered capital of 4 million baht.
Authorities said the company holds 16 land plots with an estimated value of around 200 million baht, significantly exceeding its registered capital.
Although company records showed 100% Thai ownership, foreign nationals appeared to control operations. Officials said this raised concerns that Thai shareholders may have been acting as nominees without making genuine investments.
Another company under scrutiny is Salabuff Co. The company allegedly worked with resorts to service customers who seek private tourism interested in nude recreations in secluded resort and beaches.
The company is officially registered under Thai ownership. However, the company’s director could not provide convincing evidence of genuine investment, prompting further scrutiny.
Phunpong said the DBD is preparing to submit information on 623 suspicious companies in Surat Thani, Phuket, Krabi and Phang Nga to a special task force under the Royal Thai Police.
The department added that accountants were found to be involved in supporting the nominee arrangements.
Phunpong said the department remains committed to intensifying action against nominee structures, particularly in key economic and tourism provinces with high levels of foreign investment.
He stressed that Thailand remains open to legitimate foreign investment. Foreign businesses can legally operate in Thailand under the Foreign Business Act.
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