Bangkok: The Department of Business Development is intensifying its crackdown on foreign legal entities violating Thai law, issuing stern warnings to Thai citizens against providing any assistance to such businesses. The department emphasizes that severe penalties await those involved in illegal activities and vows to continue its crackdown on nominee arrangements.
According to Thai News Agency, the department is actively reviewing data from 6,551 foreign-owned legal entities suspected of engaging in illegal activities under the last three official lists. In-depth investigations are being conducted in collaboration with partners, and individuals found guilty will face strict action to prevent further damage to the country from these illegal businesses.
Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, revealed that the ministry has launched a proactive operation to inspect suspicious legal entities. It has been discovered that foreigners holding 50% or more of the shares are illegally conducting businesses listed in the annex of the Foreign Business Act B.E. 2542 (1999) without permission, a clear violation of the law. The department has employed technology to analyze and link databases to screen entities at risk of engaging in illegal activities. Initially, 6,551 foreign legal entities were found conducting business without permission, potentially violating the Foreign Business Act B.E. 2542 (1999).
The Department of Business Development is conducting in-depth investigations and coordinating with partner agencies such as the Department of Special Investigation (DSI), the Royal Thai Police, and tax agencies to expand the investigation to related networks. The department reiterates that foreign business operators or investors wishing to invest and conduct business in Thailand must strictly comply with the Foreign Business Act B.E. 2542 (1999), which specifies conditions for foreign business operations in three annexes.
These annexes categorize businesses based on their importance: Schedule 1 prohibits foreigners from engaging in businesses related to basic livelihoods reserved for Thai citizens. Account 2 involves businesses related to national security or with significant economic and social impact, requiring ministerial permission. Schedule 3 lists businesses where Thais are not yet ready to compete, requiring permission from the Director-General of the Department of Business Development.
Offenses under the Foreign Business Act B.E. 2542 (1999) are punishable by both imprisonment and fines. Those conducting business without permission, complicit individuals, or those failing to take reasonable precautions may face imprisonment of up to 3 years, fines ranging from 100,000 to 1,000,000 baht, or both.
The Department of Business Development confirms its commitment to a proactive approach using a linked database system and risk analysis technology to screen entities engaging in potentially illegal activities. It requests public cooperation in reporting suspicious activities to protect the country's economic system. Reports can be submitted via the Department of Business Development website: www.dbd.go.th
For further details, contact the Foreign Business Administration Division at 0 2547 4425 - 6 and the Illegal Business Prevention and Suppression Division at 0 2547 4400, Department of Business Development, Ministry of Commerce. Call Center 1570 and the Department of Business Development website: www.dbd.go.th, Director-General Poonpong concluded.