Ministry of Commerce data show about 70 percent of the 16,800 registered entities on Koh Samui and Koh Phangan are partly foreign-owned, underscoring the depth of foreign involvement in resort areas.

Under Prime Minister Anutin Charnvirakul, the government is pursuing prosecutions and shell-company crackdowns, citing illegal ownership and widespread abuses.

Authorities have previously arrested foreign suspects and seized land tied to illicit companies in Phuket and Surat Thani as part of the crackdown.

Law firms report a surge in inquiries from foreigners fearing asset freezes or criminal charges, with clients often saying they relied on lawyers’ advice.

A Krabi-based company described as a nail salon was allegedly operating as an adult-content business via OnlyFans, illustrating how the nominee scheme can manifest in practice.

Thai authorities have identified about 50,000 foreign-linked companies for scrutiny through inspections and AI-driven cross-checks of registries.

Industry voices highlight tensions among foreign investors, locals, and Thai nationals, raising concerns about the investment climate and legitimate business practices.

The crackdown is framed as a move to protect the Thai economy and ensure compliance, with promises to prosecute shell-company abuses and enforce ownership rules.

Thailand is tightening enforcement against foreign-owned companies that use local nominee owners to bypass the Foreign Business Act, signaling a broad crackdown on shell companies.

The crackdown draws mixed reactions: some foreign residents support the move for fair competition, while others worry about potential overreach and negative impacts on investment reputation.