Government launches Pattaya nominee crackdown, orders closure of four tour firms
Authorities found multiple irregularities during inspections in Pattaya, revoked the licences of four tour companies and widened their investigation into suspected nominee and foreign business violations.
- Thai authorities have launched a multi-agency crackdown in Pattaya targeting illegal "nominee" businesses, where foreigners use Thai nationals to circumvent business ownership laws.
- As a direct result of the operation, four tour companies, Aletia Tours, Yor Indo-Thai Group, Y J H, and Di V-Ext, had their licenses revoked and were ordered to close.
- The investigation, focused on tourism and real estate, also found a Thai national suspected of holding shares for foreigners in over 100 companies, with authorities warning of severe penalties for violators.
The Department of Business Development, Ministry of Commerce, has stepped up its crackdown on “nominee” businesses by integrating cooperation with relevant agencies and carrying out on-site inspections of businesses in Chon Buri, one of the country’s key economic areas for tourism and real estate.
Numerous irregularities were found, and legal action has begun immediately.
Poonpong Naiyanapakorn, Director-General of the Department of Business Development, said that from March 18-20, 2026, the department worked with partner agencies, namely the Department of Tourism, through its Eastern branch office for tourism business and tourist guide registration, the Tourist Police, the Department of Special Investigation (DSI), the Immigration Office, and the Chon Buri Provincial Commerce Office, to inspect businesses in Pattaya considered at risk of operating as nominee structures.
The operation focused on tourism businesses, related businesses and real estate businesses.
The operation began with inspections of four accounting and law offices that appeared to be using the same premises to register multiple companies.
Officials also found a case in which a single Thai national held shares in more than 100 companies, with a combined investment value of no less than 300 million baht.
This raised suspicions of shareholding on behalf of foreign nationals, or assistance in circumventing restrictions under the Foreign Business Act 1999.
The department has urgently summoned those involved to clarify the facts.
If wrongdoing is found, it will pursue legal action to the fullest extent, particularly in cases involving nominee structures that distort competition and place Thai entrepreneurs at a disadvantage.
In the tour business sector, clear irregularities were found in four juristic persons whose changes to company directors resulted in director ratios that no longer complied with the law under the Tourism Business and Tourist Guide Act 2008.
Officials, therefore, ordered the immediate revocation of their licences.
The companies ordered to close were Aletia Tours Co., Ltd., Yor Indo-Thai Group Company Limited, Y J H Co., Ltd., and Di V-Ext Co., Ltd.
At the same time, officials also found three foreign businesses engaged in the buying and selling of real estate, which is a prohibited business under List One (9) of the law.
Evidence is now being gathered for a deeper investigation, and if legal violations are found, decisive prosecution will follow.
In addition, data screening found that in Chon Buri province, there are as many as 146 foreign juristic persons that may be operating businesses listed in the schedules annexed to the Foreign Business Act 1999.
Some may fall under categories that are absolutely prohibited or that require prior permission before operation, making further in-depth investigation necessary.
The Director-General of the Department of Business Development stressed that nominee arrangements pose a major risk to Thailand’s economic structure because they distort market competition and directly affect Thai entrepreneurs.
The department will continue inspections and crackdowns in all areas nationwide, while warning Thai nationals who assist or support foreigners in violating the law to cease such behaviour immediately.
Offenders will be punished under the Foreign Business Act 1999.
Thai nationals who provide assistance or act as nominee shareholders may be prosecuted under Section 36, while foreigners who operate businesses without permission are guilty under Section 37 and are liable to imprisonment for up to three years, a fine of 100,000-1,000,000 baht, or both.
If they fail to comply with a court order, they may also face an additional daily fine of 10,000-50,000 baht until the violation ceases.
This operation sends a clear signal that the government is serious about regulating foreign businesses, particularly in key economic areas such as Pattaya, which is an international tourism hub and faces a high risk of nominee structures being used to conceal business operations.
If the expanding investigation uncovers widespread violations, it could lead to a major “sweep” of nominee businesses, with significant implications for the competitive structure of Thailand’s tourism and real estate sectors in the period ahead.
