Phuket Intensifies Crackdown on Foreign Nominee Businesses: 196 Cases to Court, 9 Verdicts Issued

Phuket – The oversight of foreign-owned businesses operating under nominee arrangements in Phuket has been significantly tightened. On September 14, 2026, the House Committee on Commerce and Intellectual Property conducted a field visit to the province to investigate economic activities and foreign-invested enterprises. Led by Chairman Samrit Tantanasap, the committee identified four key issues requiring urgent attention: nominee businesses, foreign land ownership, illegal business operations, and intellectual property infringements. These concerns are seen as potentially distorting the local economic landscape and fair competition. Following the committee's visit and subsequent intensified scrutiny, 196 cases related to foreign nominee businesses have been forwarded to the courts. Of these, 9 verdicts have already been issued, indicating a proactive legal response. In Thailand, foreign directorship and ownership are regulated, with restrictions on certain sectors and land acquisition. However, the practice of "nominee businesses," where Thai nationals are appointed as nominal owners while foreigners retain effective control, has been a persistent issue, particularly in tourism-dependent areas like Phuket. Authorities have long monitored this practice due to its implications for economic policy and domestic industry protection. The current crackdown is part of an effort to ensure the health and transparency of Phuket's economy and to safeguard the interests of Thai citizens. Similar enforcement actions are expected to continue. Information Source: The Phuket Express