No products in the basket.
Thailand is grappling with foreign illegal businesses nominee schemes
Thailand is facing a surge in illegal businesses operated by nominees, predominantly from China, posing a threat to the local tourism and restaurant industries.
Thailand is currently facing a significant challenge in the form of illegal businesses operating through nominee schemes. This issue has been brought to light by various local business groups and authorities who are calling for stricter law enforcement to protect legitimate businesses and the economy.
Key Takeaways
- The number of nominee businesses where Thai nationals hold shares on behalf of foreign investors to circumvent local ownership laws is growing.
- Nominees usually hold shares on behalf of foreign investors, giving the appearance of compliance with Thai laws.
- The government has taken measures such as inspections, revoking licenses, and forming partnerships with other agencies to combat the issue of nominee businesses.
Recently a large Chinese-language billboard in Huai Khwang district, explicitly offering services to help customers obtain passports and citizenship for several countries, has reopened the controversy surrounding nominee businesses in Thailand.
Nominee schemes involve individuals or entities holding shares in a company in name only, without any real financial stake or interest. This practice is illegal in Thailand, as outlined in the Foreign Business Act of 1999 and the Land Act. Despite the clear legal stance, the enforcement has been lax, leading to an influx of illegal operations that exploit this loophole.
Support authors and subscribe to content
Subscribe to read the entire article.
Login if you have purchased
Discover more from Thailand Business News
Subscribe to get the latest posts sent to your email.
