Nominee probe set to broaden

The BDD and involved agencies, including the Lands Department and Provincial Administration Department of the Interior Ministry, have already inspected 13 companies, most of which are engaged in condominium business in the province, but no breaches of the law governing foreign ownership have yet been found.
BDD director-general Pongpun Gearaviriyapun said yesterday that government agencies would continue to inspect companies seen as likely to have breached rules under the Foreign Business Act for foreign interests holding a majority share in protected businesses that are preserved for Thais.
“After inspecting firms in Chon Buri, the department has not found any breaches to date, but we will need to deepen our investigation into some firms, and will also continue to inspect companies in other tourism-targeted provinces. The next provinces [in our sights] are Prachuap Khiri Khan and Chiang Mai,” she said.
The BDD has already withdrawn the business licences of 15 companies in Phuket and three in Bangkok for having a nominee structure that allows foreigners to hold a majority stake or using Thai nationality to do business instead of foreigners.
Meanwhile, the department reported yesterday that new business registrations in the first seven months of the year had fallen slightly to 36,711, a decline of 0.6 per cent from the same period last year.
Despite the drop, the BDD remains confident that the number of new companies will reach the target of 60,000-65,000 this year, thanks to the government’s economic-stimulus measures and the faster pace of economic growth. Last month, the number of new companies dropped 9 per cent year on year to 4,919.