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Illegal business in Patong: Phuket puts foreign businesses at risk!
On October 23, 2025, Thai officials conducted raids against suspected illegal foreign businesses in Phuket.
Illegal business in Patong: Phuket puts foreign businesses at risk!
On Thursday, October 23, a large-scale immigration operation was carried out in Patong, Phuket, targeting foreign companies that may be operating illegally. The operation, led by police Colonel Kriangkrai Ariyaying, was part of a nationwide initiative overseen by Prime Minister Anutin Charnvirakul that aims to tighten control on illegal activities by foreign nationals in Thailand and protect the country's reputation. The measure came following public complaints regarding improper business activities along Phra Barami Road and Rat-U-Thit 200 Pi Road.
As part of this raid, five retail locations, including a motorcycle rental store, travel agencies, hair salons and restaurants, were examined. Officers secured a search warrant and seized 66 motorcycles as well as relevant documents intended to be used as evidence. Initial investigations revealed that four of the five companies searched violated the law Foreign Business Act of 1999, which only grants foreign companies limited access to certain business areas.
Background to the raid
The Mission was the resulting move after intense complaints from citizens about the illegal practices of foreign entrepreneurs. This measure is part of a broader strategy aimed at ensuring that tourism-related businesses comply with legal requirements. All people involved, regardless of their nationality, must expect legal consequences.
An Israeli citizen belonging to one of the accused companies said he was the operator of a motorcycle rental company that also offered tour services and hairdressers. Although all employees were legally employed, the company fell within the restricted foreign ownership categories. Such constructs are suspected of violating the provisions of the FBA, which makes access more difficult for foreign investors in many industries.
Violations of the Foreign Business Act
The Foreign Business Act stipulates that at least 50% of the shares in a company must be in Thai hands in order to protect the rights of Thai companies. In certain cases, foreign entrepreneurs even have to seek Cabinet approval to operate in domestic markets.
A review of the business documents of the affected companies shows that the authorities are primarily focused on the use of nominee structures. These alleged tricks to circumvent legal requirements are now being thoroughly investigated with a view to taking legal action.
Security authorities and administrative officials emphasize that enforcement of regulations is necessary not only to maintain legality but also to protect the investment climate in Thailand. The Patong operation is just one part of this comprehensive effort to ensure that all business activities are transparent and compliant with applicable laws.
In any case, the raid shows that Thailand is determined to enforce its laws and ensure that its tourism industry is on solid ground, both legally and ethically. We will be excited to see how these developments will impact the business landscape in Phuket and beyond.