Shocking controls: Thai companies under suspicion!

Shocking controls: Thai companies under suspicion!

In Thailand there is currently a veritable exam storm in the corporate landscape. Reported today, that the Department of Enterprise Development, headed by Mr Poonphong Nainapakkorn, will step up checks on whether Thais hold shares on behalf of foreigners. This measure aims to clarify conditions in a market seen by many as potentially questionable.

The numbers speak for themselves: There are currently 778,457 companies in Thailand, of which 121,096 have foreign investors on board. An astonishing 97% of these companies, i.e. 117,496 companies, hold between 0.01% and 49.99% foreign capital. The importance of foreign investment for the local economy is particularly evident in tourist-oriented provinces such as Phuket, where 109,046 of these companies are located.

Intensive reviews are imminent

The department will place a special focus on companies that have foreign investments in the form of nominations. There will be a thorough review of accounting and law firms that currently serve as directors or shareholders. Clarity is particularly important with regard to legal entities that own land or real estate, as Thais are often appointed as partners here too.

A total of 21,459 companies currently appear to be affected. This shows how seriously the authority takes the issues of compliance and transparency. If violations are found, those responsible face penalties of up to three years in prison or fines of between 100,000 and 1 million baht in the worst case scenario.

In addition, last year there were 357 cases that were forwarded to the Anti-Money Laundering Authority (AMLO) for review of financial flows. The tax office is also busy with 3,634 cases, while 11 companies were handed over to the economic crime authority for legal prosecution.

Strict business start-up measures

Another step in the effort to protect the integrity of the market is stricter control over the registration of companies. From January 1, 2026, new regulations will apply to put a stop to the creation of new companies that could be used to deceive. The comparison between this year and the last speaks volumes: While 549 new companies were registered to open a fraudulent account by mid-February 2025, this year this number has only fallen to one.

Despite these strict measures, fraudsters still appear to be looking for other loopholes, such as buying company shares from former owners. However, the department keeps a close eye on such activities to quickly stop criminal behavior. Entrepreneurs who sell their shares via social media are also warned to be careful to avoid falling victim to scammers.

It remains to be hoped that the new measures will send a clear signal and strengthen confidence in Thailand's business landscape.