Koh samui: An extensive operation to inspect nominee companies across Koh Samui and Koh Phangan has revealed over 100 companies registered at a single address, prompting further investigations into a network holding significant high-value land. The Department of Business Development, in collaboration with the Department of Special Investigation (DSI), spearheaded the operation targeting businesses suspected of using nominees to hold land and conduct business on behalf of foreigners at five locations on these islands.
According to Thai News Agency, this initiative follows the discovery of a network involved in owning high-value land and operating real estate businesses, linked to a law firm that served as the registered address for over 100 companies. The Director-General of the Department of Business Development, Mr. Poonpong Naiyanapakorn, revealed that the investigation began after the Department submitted information on 34 companies suspected of using nominees to the DSI. This led to searches in Koh Samui and Koh Phangan districts, Surat Thani province, under search warrants for violations of the Foreign Business Act B.E. 2542 (1999), in collaboration with local agencies.
The investigation uncovered companies developing a luxury villa project in the Bo Phut subdistrict, suspected of using Thai nationals to hold shares on behalf of foreigners. These companies were found to own nearly 100 rai of land valued at approximately 1,567 million baht, with the project's initial estimate around 1,600 million baht, possibly higher. Numerous documents related to shareholdings, land ownership, sales contracts, and financial transactions were discovered. The DSI is currently expanding the investigation to include related individuals and legal entities, as well as examining the concealment of the ownership structure through multiple layers of legal entities.
Authorities also targeted a law firm suspected of facilitating the establishment or holding shares on behalf of foreigners. The firm was linked to over 150 companies, with more than 103 companies registered at the same office. Over 101 of these companies were found to hold real estate valued at least 795 million baht. Key documents and financial evidence were seized for further investigation. Additionally, three other companies operating hotels, resorts, health centers, and rental accommodations were investigated for suspected use of nominees. The source of investment funds, the ability of Thai shareholders to pay for shares, and the validity of relevant business licenses are currently being examined.
Mr. Poonpong noted that this investigation aligns with government policy and directives from Deputy Prime Minister and Minister of Commerce, Ms. Supajee Suthamphan, who instructed the Department of Business Development to expedite the investigation and crackdown on the use of nominees to prevent legal evasion and ensure fair competition. Data from the Department of Business Development indicates that Surat Thani province has over 3,500 high-risk companies where foreigners hold less than 50% of the shares but own more than 50% of the real estate. Furthermore, 261 companies were discovered to have accountants holding shares. This information will be pivotal for further analysis and investigation, with legal action to follow if any illegal activities are uncovered to protect the country's economic interests and ensure fair competition.