Chonburi: Suspicious activity in Chonburi province has led to the closure of four companies due to nominee structures.
According to Thai News Agency, the Department of Business Development, in collaboration with related agencies, conducted thorough inspections of tourism and related businesses, including real estate, in the province. These inspections revealed activities suggesting nominee arrangements, such as using the same address for multiple company registrations, a single Thai national holding significant shares in numerous companies, and board of director changes that contravened tourism business laws. Consequently, four tour companies have had their licenses revoked.
Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, disclosed that the nominee enforcement team, alongside the Department of Tourism (Eastern Region Branch of the Tour Guide and Business Registration Office), the Tourist Police, the Department of Special Investigation (DSI), the Immigration Bureau, and the Chonburi Provincial Commerce Office, executed a raid in Pattaya. Their aim was to scrutinize businesses suspected of being nominee entities, focusing on the tourism and real estate sectors.
Initial inspections revealed that four accounting and law firms were using the same address to register several companies. Suspicion arose when a single Thai shareholder was found to have shares in over 100 companies, with a total investment amounting to at least 300 million baht. This suggests potential nominee ownership of shares for foreigners or providing illegal support or advice to foreigners under the Foreign Business Act B.E. 2542 (1999). The Department has demanded those involved to clarify the facts, and if any wrongdoing is confirmed, they will face legal action.
During the field visit, it was found that four tour operators had changed their board of directors in a manner that violated Section 17 (1) of the Tour Operator and Tour Guide Act B.E. 2551 and its amendments. Consequently, the officials revoked their licenses and posted the revocation order at their business premises. These companies are: Alithea Tour Co., Ltd., Yor Indo-Thai Group Co., Ltd., YJ Ace Co., Ltd., and The V-Ex Co., Ltd.
Simultaneously, the Department is investigating three foreign businesses involved in real estate transactions, which are prohibited for foreigners to operate under Schedule One (9). The Department is gathering facts and evidence for an in-depth investigation, and if violations of foreign business operation laws are found, decisive legal action will follow.
Data screening in Chonburi Province revealed 146 foreign-owned businesses operating under the Foreign Business Act B.E. 2542 (1999), which are subject to strict regulation and monitoring due to prohibitions or permission requirements for foreign engagement.
Mr. Poonpong emphasized the Department's commitment to preventing and suppressing nominee businesses, highlighting the economic distortions and disadvantages they pose to Thai entrepreneurs. He cautioned Thais against assisting foreigners in illegal acts, as both Thai and foreign nationals will face legal repercussions if found guilty.
Under the Foreign Business Act B.E. 2542 (1999), violators face imprisonment of up to 3 years, fines ranging from 100,000 to 1,000,000 baht, or both. Additionally, non-compliance with a court order incurs a daily fine of 10,000 to 50,000 baht until the violation stops.