The Department of Business Development (DBD) has stepped up operations against nominee firms after investigations found 68% of the registered businesses on Koh Samui and Koh Phangan in Surat Thani are run by foreigners.
Director-general Poonpong Naiyanapakorn said the operations — unofficially called “nominee scanning” — stemmed from widespread criticism that the two islands have been “taken over” by foreigners using Thai “nominees” to hold shares in companies they run.
Among the 16,811 firms registered on both islands, the DBD found 11,426 registered on Koh Samui and Koh Phangan are operated by foreign investors, totalling 68%.
The types of businesses are both legitimate and illegitimate, Mr Poonpong said, adding that a memorandum of understanding that the DBD signed on April 29 with partner agencies aims to completely “uproot” these nominee firms.
The scanning operations on firms in mainland Surat Thani, Koh Samui and Koh Phangan found that more than 11,000 of the 21,717 registered firms in the province are run by foreigners, with French, British and Russian nationals accounting for the top investors in the area.
On Koh Samui, among 12,050 registered companies, 8,213 are foreign investments, with the top investors also coming from France, the United Kingdom and Russia.
On Koh Phangan, 3,213 of the island’s 4,761 companies are run by foreigners. Israelis account for the biggest investors, followed by the French and the British.
“From the data we compiled, foreign investors are from the same countries. So it’s not surprising to hear that foreigners have completely taken over Koh Phangan and Koh Samui,” said Mr Poonpong.
On Koh Phangan, he said accountancy and real estate were the main focus of the department’s attention.
The DBD has looked into an accounting firm whose owner is named as a shareholder in 66 other firms. The firm’s registered address is also shared by another 89 firms.
Eight villas on Koh Phangan have been examined after investigations found they have been marketed as temporary accommodation at 13,000 baht per night, with operators found to be running a hotel without the required permits.
Further investigations found that two Thailand-registered companies own the villas and have Israeli shareholders.
