BANGKOK, THAILAND – Raids in the Huai Khwang district have intensified Thailand’s campaign against illegal shell company participations; investigators identified 53 high-risk firms, initiated checks on financial flows and ownership structures, and simultaneously found violations of labor and immigration laws.
Huai Khwang Becomes Focus of the Action
The investigations are currently concentrated on Bangkok’s Huai Khwang district, which the Department of Business Development (DBD) designates as one of the highest-risk areas. DBD Director Poonpong Naiyanapakorn announced on Friday, June 5, that surveillance and enforcement measures are continuously taking place there.
53 Companies Under Scrutiny
The examinations uncovered 53 legal entities suspected of having shell company structures and falling under the Foreign Business Act. The registered capital of these companies, according to the DBD, ranges from 1 million to 4.999 billion Baht, demonstrating the breadth of affected business models.
Restaurant Complaint Triggered the Wave
The trigger for the intensified controls was a customer complaint about a Chinese-run restaurant that allegedly did not accept Thai Baht. The affected business, registered in 2024, shows 51% Thai and 49% Chinese shareholders in its documentation and reported daily revenue of approximately 30,000 Baht after inspections.
Joint Raid on Pracharath Bamrung Road
In a joint operation, officials from the DBD, the Immigration Bureau, and the Department of Employment inspected businesses along Pracharath Bamrung Road in Huai Khwang. The operation, led by Deputy DBD Director-General M.L. Phuthong Thongyai, included restaurants, supermarkets, and real estate firms.
Four Firms at One Address Raise Suspicion
Investigators discovered four companies at the same address with close personal connections; two subsidiaries collectively hold a registered capital of 30 million Baht. One of the audited companies was registered in 2022, changed its name five times, and, according to authorities, has not submitted financial reports for 2023, 2024, and 2025.
Supermarket Closed, Permits Lacking
A inspected supermarket showed a 60% foreign ownership and was closed during the inspection; authorities cited missing permits. The findings from the inspection led authorities to initiate legal proceedings against the company.
Labor and Immigration Violations Discovered
The checks also revealed labor violations, according to the DBD: foreign nationals were allegedly working outside their approved conditions or employers were not correctly registered. Affected foreigners were arrested and transferred to the Huai Khwang Police Station; proceedings are also being examined against employers.
AMLO and Police Receive Information
The DBD transmitted data on suspicious shareholders and accountants to the Anti-Money Laundering Office (AMLO), the Royal Thai Police, and the Revenue Department for further examination of financial flows and ownership structures. Authorities are now reviewing financial transactions and account movements after some names appeared in AMLO’s HR03 register.
Government Extends Focus to Tourism and Construction
Prime Minister Anutin Charnvirakul reaffirmed the continuation of the campaign, which began after he took office in September, during a meeting of high-ranking officials. The government is focusing on tourism, transport, construction, and real estate, and is expanding controls to tourist hotspots such as Pai, Koh Phangan, Phuket, and Koh Samui; further investigations and legal actions are ongoing.