Thailand Intensifies Nominee Company Crackdown, 14,000 More Firms Under Scrutiny

The intensive crackdown on nominee companies nationwide is now targeting an additional 14,000 firms suspected of using Thai nationals to circumvent restrictions under the Foreign Business Act B.E. 2542 (1999). Deputy Interior Minister Polapee Suwunchwee stated during a roving cabinet meeting at Songkhla University’s Hat Yai campus that nationwide, 2,314 companies hold over 5,800 plots of land worth 65 billion baht. Government agencies are currently conducting further investigations into another 14,000 companies suspected of being nominees. Responding to questions about the crackdown on nominee businesses in Bangkok’s Huai Khwang area, the Deputy Minister said, "We already have information on which areas in Bangkok and other provinces we suspect may have nominee companies. We are compiling data from the Department of Provincial Administration and the Ministry of Commerce. Once we are confident about which companies are nominees, we will examine the details more closely, especially regarding business licenses. If a company lacks a license, we will conduct an inspection. There are many more locations in Bangkok, as well as provinces in the central and northern regions, that we are preparing to investigate." Regarding a raid on 577CLUB in Soi Pracha Uthit 11, Huai Khwang area, which occurred over the weekend after complaints that the entertainment venue, previously raided in August last year, was still operating with a likely Chinese owner, Polapee said that authorities did not intentionally target that area and did not know beforehand which of the zone's three police stations was in charge, but it turned out to be Huai Khwang station. "Even if they move to evade us, they cannot escape us. We are determined to crack down, but we acknowledge that shady businesses continue to spring up like mushrooms," he said. Concerning the Bangkok Metropolitan Administration’s (BMA) order to temporarily close some entertainment venues in the Saphan Khwai area, Polapee believes the city administration noticed the action taken in Huai Khwang and the numerous media reports about these venues, prompting their investigation. He suggested the temporary closure is likely due to public health concerns but noted that the BMA can do more, such as checking structural issues and permits. Source: Thai Newsroom