Thailand Implements Stricter Regulations to Combat Nominee Shareholders

According to Khaosod Online Thailand, the Department of Business Development (DBD) under the Ministry of Commerce has issued a new directive, Order No. 2/2569, aimed at curbing the use of 'nominee' shareholders. Effective August 1, 2026, this regulation mandates that any company registration or amendment involving foreign investment or authorized signatories must include detailed proof of investment capacity.

Specifically, applicants are now required to submit a formal investment explanation along with three months of bank statements from both the Thai investors and the recipients of the investment funds. This measure is designed to verify the actual financial capability of the parties involved, thereby closing loopholes that have historically allowed foreign interests to bypass ownership restrictions by using Thai proxies.

For residents and business owners in Thailand, this shift represents a significant tightening of corporate compliance requirements. The government states that these actions are intended to foster fair competition and protect the national economy from unauthorized foreign control. While these rules are now in effect, the long-term impact on the ease of doing business and the specific enforcement mechanisms for existing companies remain to be fully observed. Those involved in corporate structures with foreign participation should ensure their documentation aligns with these new transparency standards to avoid potential regulatory scrutiny.