Alleged nominee ownership in Chanthaburi durian orchard targeted
The Ministry of Commerce is investigating whether a company that owns a durian orchard in Chanthaburi province has violated the Foreign Business Act BE 2542 (1999) by using Thai nominee shareholders.
Napintorn Srisunpang, Deputy Commerce Minister, explained that over the past nine months (September 2024 – May 2025), 861 companies and shareholders have been prosecuted for operating businesses either prohibited or requiring permission under the Foreign Business Act, with a combined registered capital of 15.29 billion baht.
He further explained that a working team, comprising officials from the Ministry of Commerce, Department of Lands, Department of Business Development, and Department of Foreign Trade, conducted an inspection on a company owning a durian orchard in Makham district, Chanthaburi, on Thursday (June 12).
The company has over 1 billion baht in registered capital and owns nearly 200 land plots, totalling more than 900 rai (approximately 144 hectares). It maintains a Thai-to-foreign shareholding ratio of 53:47.
Since farming, agriculture, and gardening are strictly prohibited business activities for foreigners, and given their significant impact on economic security, the company's legitimacy is now under scrutiny.
Chakra Yodmani, the Commerce Ministry's Deputy Permanent Secretary, stated that the Ministry would accelerate investigations to determine whether the Thai shareholding in the company is legitimate or merely a nominee. He emphasised that if any illegal activities are found, strict legal action would be taken.
“The Ministry of Commerce will integrate efforts with relevant agencies to investigate, uncover the facts, and take continuous action against foreign capital groups that violate the law,” he said.
He also warned Thai nationals who allow foreigners to use their names in business operations to cease such actions, stressing that they could face charges for assisting, supporting, or holding shares on behalf of foreigners to bypass or violate the law.
Violations could lead to imprisonment for up to three years, fines ranging from 100,000 to 1 million baht, or both. The court may also order the cancellation of the shareholding. Failure to comply with the court's order could result in a daily fine ranging from 10,000 to 50,000 baht until the violation is rectified.
Commerce Ministry targets alleged nominee ownership in Chanthaburi durian orchard
