Law
SEC Commissioner Proposes Foreign Business Law Reform Following US Tariff Hikes
Pachara Naripthaphan, a commissioner at Thailand's SEC, has proposed four key reforms to the Foreign Business Act to address nominee structures in response to recent US tariff increases.
Proposed Regulatory Changes
On July 31, 2026, Pachara Naripthaphan, a commissioner at the Securities and Exchange Commission (SEC) of Thailand, publicly addressed the economic implications of recent tariff increases imposed by the United States on Thai goods. Citing concerns regarding Section 301 of the U.S. Trade Act, Pachara suggested that Thailand must urgently overhaul its Foreign Business Act.
Addressing Nominee Structures
The core of the proposal focuses on closing legal loopholes that currently allow for the use of 'nominees'—individuals or entities used to hold assets or operate businesses on behalf of foreign interests to circumvent ownership restrictions. Pachara outlined four specific recommendations aimed at tightening these regulations to ensure greater transparency and compliance within the Thai business environment.
Impact and Outlook
For residents and expatriates, these proposed reforms could signal a shift in how foreign-owned businesses operate in Thailand. If implemented, stricter enforcement against nominee structures may impact business registration processes and corporate compliance requirements.
It remains to be confirmed whether the Thai government will adopt these specific recommendations or how quickly any legislative amendments might be drafted. As of now, these suggestions represent the professional opinion of an SEC commissioner rather than an enacted government policy. Stakeholders are advised to monitor official government announcements for any formal changes to business regulations.
Translated from Thai.
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