The Department of Business Development has warned that Thai citizens who allow their names to be used by foreign individuals as nominees to open businesses reserved for Thai nationals could risk facing severe penalties.
According to the department’s director-general, Thosapone Dansuputra, those found guilty of such offenses may face prison terms of up to three years and fines ranging from 100,000 to 1 million baht. The warning comes in response to reports that foreign businessmen have been purchasing a number of food shops in Bangkok’s Chinatown area using names and credentials belonging to Thai nationals.
Dansuputra clarified that foreign individuals are not allowed to open businesses that sell food or drinks in Thailand, and must obtain permission from the department before doing so. He added that Thai citizens who co-invest with foreign partners in such businesses must provide evidence of their financial resources, such as bank statements, to prove that they are not simply acting as nominees.
Dansuputra emphasized that legal action can only be taken against foreign businessmen who use Thai nominees if there is clear evidence that the Thai partners deliberately allowed themselves to be used as nominees and concealed the fact to assist the foreigners.
In an effort to enforce these regulations, the Department of Business Development has reportedly been working in cooperation with the Labour Ministry to check businesses that have foreign partners or shareholders and ensure that they are properly registered. (NNT)
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