Thailand’s Department of Business Development (DBD) launched a crackdown on nominee businesses in Koh Tao, Surat Thani, inspecting 12 tourism businesses and finding two of them violating laws.
DBD Director-General Poonphong Naiyanapakorn stated yesterday, August 18, that the inspection took place on August 17 as part of a joint operation to tackle nominee businesses in Thailand’s tourism sector.
The operation was conducted by the DBD’s Illegal Business Prevention and Suppression Division together with the Department of Tourism, Office of the Permanent Secretary of the Ministry of Tourism and Sports, Tourist Police Bureau and Immigration Bureau.
The operation targeted 12 tourism companies with foreign shareholders ,and officials found two companies in violation of relevant laws.
The first company provided diving instruction and was in the process of seeking permission to operate a hostel. The company had two authorised directors, one foreign national and one Thai national.
Nevertheless, this business structure breached the Tourism Business and Guide Act, which requires more than half of a company’s directors to be Thai nationals. Officials subsequently revoked the company’s licence. Furthermore, a foreign diving instructor for this company was found working without a permit.
The second company was found to be operating without a licence. The Department of Tourism has taken legal action in accordance with its relevant regulations.
Officials inspected the remaining ten target companies and found that one was temporarily closed. The other nine companies, which are mostly involved in diving or diving instruction, were found to be operating legally.
Officials also found that the foreign directors and employees of these nine businesses had valid work permits, and that Thai shareholders held management positions.
Poonphong said the DBD would continue investigating nominee businesses using linked databases and technology to analyse risk and identify companies showing signs of potentially illegal activity.
He also urged Thai and foreign business operators, as well as companies providing advice on company registration and investment, to strictly comply with Thai business laws and help establish transparent business practices.
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