Bangkok: The Department of Business Development has unveiled proactive measures to tackle nominee arrangements, a long-standing issue affecting foreign investment in Thailand. Mr. Poonpong Naiyanapakorn, Director-General of the department, confirmed that efforts to investigate, enforce the law, and prosecute offenders will continue with strict measures already in place. Emphasizing cooperation among all sectors, Mr. Poonpong highlighted a significant reduction in the number of individuals at risk.
According to Thai News Agency, the problem of nominees has been deeply rooted in Thai society for years. The statistics show a steady increase in legal entities at high risk due to nominee arrangements, with numbers rising from 523 in 1998 to 11,746 in 2025, and a cumulative total of 119,297 as of June 21, 2026. However, between January 1 and May 31, 2026, there was a notable 65% decrease in high-risk legal entities compared to the previous year, attributed to the government's commitment to combating nominee structures.
The Ministry of Commerce, through the Department of Business Development, signed an MOU with 23 organizations on April 29, 2026, aiming to prevent and suppress the use of Thai nationals as nominees. Business registration processes have been upgraded to include pre-registration screening and stricter inspections for entities with foreign shareholders or directors. The Central Registry Office has issued five orders and two announcements, leading to a significant decrease in high-risk nominee groups.
Following the implementation of these orders and announcements, the number of high-risk nominee legal entities fell by 51.05% from January 1st to March 31st, 2026. Additionally, an April 1st, 2026 measure requiring registered entities to confirm their investments resulted in a 65.22% reduction in high-risk entities within the same period.
By August 1, 2026, the department is preparing additional stringent measures, currently seeking feedback from relevant sectors, to eliminate the remaining 35% of high-risk nominee businesses. Collaborative efforts with other agencies have led to investigations by the Revenue Department, Land Department, Royal Thai Police, Economic Crime Suppression Division, and the Department of Special Investigation into numerous cases.
The department's focus on inspecting high-risk businesses includes accounting firms, law firms, villas, construction companies, foreign-owned businesses, steel trading, tourism agencies, co-working spaces, industrial factories, coconut processing, and restaurants. As of June 23, 2026, Thailand had 1,002,685 active legal entities, with a significant portion having foreign investments.
Mr. Poonpong emphasized that addressing nominee arrangements requires cooperation from all sectors to provide guidance to foreign investors, ensuring legal operations. The Ministry of Commerce remains committed to rigorous investigation and legal enforcement to protect national interests.