BANGKOK – The Thai government is introducing new measures to tighten controls on nominee arrangements, aiming to prevent foreigners from using Thai nationals as proxies to operate businesses, with the stricter rules set to take effect on April 1, the Bangkok Post reported.

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Deputy government spokeswoman Lalida Persvivatana announced that the Department of Business Development has issued the Office of the Central Company and Partnership Registration Order No.1/2026, establishing additional registration rules and procedures designed to curb the use of Thai nominees in foreign-controlled businesses.

Stricter Certification Requirements

Ms Lalida said the new measures require managing partners or authorized directors to certify that all shareholders or partners have genuinely invested and paid with their own funds, and that they are not assisting foreign nationals as nominees. This represents a significant tightening of scrutiny compared to previous requirements.

Previously, the department required businesses considered high-risk — such as those with foreign shareholding of less than 50 percent or those with foreign directors — to provide financial evidence from Thai shareholders to verify actual investment. As a result, registrations suspected of being nominee arrangements decreased by 65 percent.

However, Ms Lalida noted that attempts to circumvent the measures have persisted, prompting the issuance of additional rules to close remaining loopholes.

Referral for Criminal Investigation

Under the new order, the department will forward the names of individuals who provide confirmations and are deemed high-risk to the Central Investigation Bureau for further examination in all cases. Providing false information constitutes an offense under the Criminal Code and may violate the Foreign Business Act of 1990, which carries penalties of both imprisonment and fines.

The government is tightening controls on nominees by introducing new measures to prevent foreigners from using Thais as proxies to operate businesses, effective April 1.

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— Bangkok Post (@BangkokPostNews) March 25, 2026

Scope of the Problem

There are currently more than 118,000 companies with foreign shareholding between 0.01 percent and 49.99 percent, some of which may involve nominee arrangements. The use of nominees affects business competition and the broader economy, officials said, by allowing foreign nationals to operate in sectors reserved for Thai citizens and undermining fair market conditions.

Targeted Inspections and Enforcement

The new measures aim to enhance transparency and ensure that businesses operate in full compliance with the law. In addition, the Business Development Department plans to conduct in-depth inspections in high-risk areas such as Chon Buri, Chiang Mai, Surat Thani, Phuket and Krabi — provinces with significant foreign investment and tourism-related businesses where nominee arrangements have historically been more prevalent.

If any attempts to rush registrations in order to evade the measures are detected, Ms Lalida warned that strict legal action will be taken.

“The government is working to suppress nominee arrangements to ensure fair business competition and to strengthen confidence in Thailand’s economy,” she said.

Thailand Tightens Grip on Illegal Nominee Businesses in Key Sectors

The crackdown reflects the government’s broader efforts to address long-standing concerns about foreign businesses operating illegally through Thai proxies, particularly in high-value sectors such as real estate, tourism and hospitality, where such practices have been criticized for distorting markets and depriving Thai citizens of business opportunities.

-Thailand News (TN)