KOH PHANGNAN — Authorities are investigating a luxury beachfront villa development on Koh Phangan, Sutat Thani Province after discovering suspicious use of Thai nominees by Ukrainian investors holding shares in two companies with combined registered capital exceeding 100 million baht ($3 million).
The investigation stems from the November 4 arrest of an Azerbaijani national for working illegally as an electrician without authorization. Further investigation revealed connections to two limited companies suspected of being the actual employers, raising concerns about nominee arrangements.
Joint Operation Launched
Pol. Maj. Gen. Suwat Suksri, Commander of Surat Thani Provincial Police, ordered relevant agencies—including Immigration Police, Tourist Police, and Koh Phangan District Administration—to inspect the villa construction project near Koh Koma in Moo 8. The operation aimed to determine whether foreigners had violated the law and were using nominee structures.
The inspection uncovered evidence of a foreign network operating businesses illegally through nominee arrangements, using Thai nationals as proxy shareholders in the two companies with combined registered capital of over $30,870. Authorities also discovered one Myanmar national working illegally at the construction site who had entered the country without authorization. Legal action was taken against him for being a foreign national in the Kingdom without permission.
Thai Nominee Structure
Pol. Col. Apichat Chansomret, Superintendent of Koh Phangan Police Station, revealed that the villa construction project’s key concern is its management structure. While the managing director is Ukrainian, investigation of the shareholding structure revealed the use of Thai nominees as proxy shareholders to circumvent legal restrictions on foreign business ownership.
The project is marketing villas at prices as high as 59 million baht ($1,821,270) per unit. Currently, over 20 units are under construction. Authorities are gathering evidence to pursue legal action against all parties involved, both for illegal employment practices and violations under the Foreign Business Act.
The case highlights ongoing efforts by Thai authorities to crack down on foreign investors using nominee structures to bypass laws restricting foreign ownership in certain business sectors.
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