KOH PHANGAN, THAILAND – Thai authorities have uncovered more than 100 companies registered under a single address on the tourist island of Koh Phangan, exposing what investigators described as a network of foreign-controlled shell firms. The discovery has prompted a high-level enforcement campaign across the country.
Nationwide plan to curb illegal foreign businesses
Thailand’s National Police Chief, General Kittirat Phanphet, announced a comprehensive four-point strategy to combat unlawful enterprises operated by foreigners, targeting not only Koh Phangan but all major tourist destinations.
The plan focuses on:
• Stricter checks at entry points to identify potential offenders
• Tighter scrutiny of visa extensions before and after approval
• Arrest and deportation of overstayers, along with penalties for landlords who harbor them
• Collection of local intelligence to coordinate large-scale raids
Authorities are also sharing information with Interpol to strengthen international cooperation in crime prevention.
Surat Thani flagged as a high‑risk province
According to Poonpong Naiyanapakorn, Director-General of the Department of Business Development (DBD), the southern province of Surat Thani, which includes Koh Phangan, now ranks second nationwide for high-risk “nominee” structures. Thai law bars foreigners from owning land directly or operating in restricted industries, prompting some to use Thai citizens or local firms as nominal shareholders.
DBD investigations found that five Thai individuals and one local company appeared as shareholders in 256 companies in Koh Phangan alone. More than 100 of these entities were registered at a single address, a key sign of possible front operations.
The DBD said it is coordinating with the Tourist Police, Immigration Bureau, Revenue Department, and Land Offices to pursue violations and ensure transparency in business ownership.
Luxury villas under investigation
On 21 October, inspectors conducted an on-site visit and identified two businesses of concern. The first, First Consultants 47 Co., Ltd., an accounting firm, listed its owner as a shareholder in 66 separate companies, a pattern consistent with nominee arrangements.
The second, the Sithaya Beachfront Villa Project, operates eight high-end villas rented at 13,000 baht (around €400) per night without the legally required hotel licence. Investigators also found property holdings exceeding 152 million baht (about €4.65 million) tied to two Thai-registered companies in which Israeli citizens hold 49% shares—the maximum permissible foreign stake.
Employment and immigration offenses draw heavy penalties
Nationwide inspections are also widening. Pichet Thongphand, Director-General of the Department of Employment, confirmed that enforcement teams are active across Bangkok, Phuket, Chiang Mai, Koh Samui, and Pattaya.
Foreigners caught working in any of 40 occupations reserved for Thai nationals—including tour guiding, massage services, and certain trading jobs—face fines from 5,000 to 50,000 baht, deportation, and a two-year re-entry ban.
Employers who hire such workers risk even tougher outcomes: 10,000 to 100,000 baht fines per employee, up to one year in prison for repeat offenses, and a three-year ban on employing foreign nationals.
Local economy and law enforcement in focus
The concerted crackdown underscores Thailand’s intent to protect local enterprises and enforce its regulatory framework in tourism-driven economies. Officials emphasized that legitimate foreign investors remain welcome — but only under compliant structures.
“ILLEGAL BUSINESS NETWORKS UNDERMINE FAIR COMPETITION AND DAMAGE COMMUNITY TRUST,” one enforcement officer noted, calling on business owners to regularize operations before facing prosecution.
With Koh Phangan’s allure for expatriates and digital nomads showing no sign of fading, Thai authorities appear determined to draw a clear line between lawful entrepreneurship and covert control schemes.