Commerce Ministry steps up nominee crackdown to protect Thai businesses

The Commerce Ministry has joined forces with 23 agencies to cut off nominee business networks through technology and proactive statistical screening, reducing high-risk juristic entities by more than 65% and protecting Thai entrepreneurs.

The problem of nominees, in which foreign investors use Thai nationals as disguised representatives to hold business interests on their behalf, has long been a persistent challenge causing damage to Thailand’s economy.

Such practices not only distort market mechanisms and disadvantage honest business operators, but also undermine fair competition nationwide. A systematic solution is therefore urgently needed.

An in-depth analysis of statistics shows that high-risk juristic entities, defined as companies with foreign investment of 0.01% to 49.99%, have grown sharply. Their number rose from only 523 in 1998 to 11,746 in 2025, with a cumulative total of more than 119,297 entities as of June 2026.

This continuous growth reflects legal loopholes that have been exploited for decades.

To tackle the issue, the government has shifted towards a proactive prevention approach. This includes integrated data sharing under a memorandum of understanding signed by 23 relevant agencies, along with stricter screening before company registration to prevent juristic entities from being used as tools for illegal business operations from the outset.

The tougher inspection measures have already produced clear results. After new orders and announcements were enforced in the first quarter of 2026, the number of high-risk entities fell by 51.05%.

Further measures requiring mandatory confirmation of investment later helped reduce the number of high-risk businesses by 65.22% compared with the same period last year.

In addition to proactive prevention, information has also been forwarded for serious law enforcement. The Revenue Department has been asked to inspect tax records of more than 14,800 entities, while the Department of Lands has been asked to investigate real estate holdings involving 17,556 entities.

Security agencies have also been brought in to pursue criminal cases against thousands of juristic entities suspected of wrongdoing, covering key economic and tourism areas across the country.

Solving the nominee problem sustainably requires not only strict law enforcement, but also a careful balance that continues to facilitate legitimate foreign investors.

The use of technology to screen, monitor and closely track high-risk businesses will help strengthen confidence, protect Thai entrepreneurs and genuinely reinforce the stability of the Thai economy.