Bangkok authorities have been addressing the issue of foreign nationals using nominee shareholders to do business in Thailand, particularly in areas like Huai Khwang district.
Bangkok Governor Chadchart Sittipunt has instructed local officials to inspect foreign-owned businesses. While these businesses can stimulate tourism from foreign visitors, the focus is on nominee shareholders, who are Thai citizens holding shares on behalf of foreign owners to evade the law. According to Thai law, foreigners are prohibited to own more than 49% of a company’s share.
Authorities will coordinate with officials from the Ministry of Commerce to ensure that the importation and sale of foreign goods are conducted legally.
In Huai Khwang district, where many Chinese businesses operate, four violations were found, including selling goods without labels and lack of proper trade registration. These four establishments have since been closed down.
Furthermore, Nipat Thonglek, an advisor to the Bangkok governor, found that almost all foreign businesses in the Huai Khwang area utilize nominee shareholders.
The Bangkok Metropolitan Administration (BMA) said Huai Khwang will be the model for how other districts proceed. It added that Samphanthawong district – especially in Yaowarat area – has also been targeted for inspection. (NNT)
