PHUKET, THAILAND – Police on Phuket carried out coordinated raids on eight locations as part of a nationwide campaign against so‑called nominee companies used to hide illegal foreign ownership structures.
Major island-wide raid
The Phuket Provincial Police launched a large-scale operation targeting suspected “nominee” businesses across the island. Officers searched eight specified locations as part of a broader national drive to curb unlawful foreign stakes in Thai companies.
Several districts and areas were in focus, including Patong, Chalong, Cherng Talay, Karon, Kamala and Sakhu. Authorities stated they were prepared to expand investigations further if necessary.
Police chief outlines operation
Pol. Maj. Gen. Sinlert Sukhum, commander of the Phuket Provincial Police, presented the initial results at a press briefing. Provincial representatives, station chiefs and members of the media attended the announcement.
The searches were conducted under directives from the government and the Royal Thai Police. Their aim was to uncover suspected circumvention schemes in corporate shareholding structures.
Sectors under scrutiny
Investigators focused on car rental companies, real estate businesses and childcare facilities. These enterprises were inspected in several tourism-driven areas on the island.
The choice of sectors indicated that areas with high demand and potentially lucrative revenues were being examined. Authorities suspected that foreign investors might be using Thai stand-ins to secure influence or ownership.
How nominee structures are checked
Officers examined company registrations, business licenses, shareholder records, registered capital and financial documents. The checks were designed to determine whether Thai nationals were acting as trustees or proxy shareholders for foreign beneficiaries.
Collected evidence was to be used for legal action where warranted. At the same time, the findings were intended to identify new investigative leads and expose possible networks.
Consequences: no exemptions
Maj. Gen. Sinlert stated that proven nominee arrangements would be prosecuted without exception. This would affect Thai shareholders, the companies involved and any foreign beneficiaries.
According to police, seven similar cases had already been brought before the courts. Some ended in convictions, while others were still under judicial review.
Penalties under the Foreign Business Act
Authorities issued a clear warning against accepting offers to act as proxy shareholders. Under Thailand’s Foreign Business Act (1999), offenders faced up to three years in prison, fines ranging from 100,000 to 1,000,000 baht, or both.
Additional daily fines of 10,000 to 50,000 baht could be imposed for ongoing violations. Courts could also order businesses to cease operations, revoke registrations or dissolve unlawful ownership structures.
Public tips encouraged
Residents were urged to report suspicious activities to local police stations. Alternatively, the 191 emergency hotline was available around the clock.
Police said they were relying on public information to detect suspected circumvention schemes more quickly. The goal was to dismantle illegal ownership arrangements and uncover further cases.
Public debate over crackdown
The report also raised questions about the broader impact of the raids on the business climate. Readers were asked whether the actions were a necessary step toward fair competition or risked unsettling legitimate companies.
It was further discussed whether Thailand should intensify controls in tourist hotspots or instead focus on clearer rules and faster court procedures. The public was invited to share their views in the comments.