What just happened?

• A multi-agency team (Immigration, Tourist Police, district officials) inspected a luxury villa development on Nov 21 near Koh Koma (Koh Phangan), seizing documents to verify Thai ownership and possible Foreign Business Act (FBA) breaches. One Myanmar worker was detained for illegal entry; further action is possible.
• This follows weeks of island raids on companies suspected of using Thai nominee shareholders. National units have directed expanded investigations into nominee companies and luxury villas on Koh Phangan.
• Meanwhile, the DBD launched a five-point plan: in-person ID verification for registrants/agents, screening against 13.4M welfare-card holders, and red-flag review when five or more firms share one address. Implementation has already begun.

Why Thailand is doing this (in plain English)

Thailand welcomes foreign investment—but not by secretly controlling Thai companies through “nominees.” Under the FBA, using Thai name-holders to conceal foreign control is an offence (with fines and potential imprisonment), and enforcement is intensifying on the islands.

At the same time, work rules reserve many occupations for Thai nationals. Recent arrests show that even “small gigs” (e.g., woodworking for a few thousand baht) can trigger charges and deportation if you don’t have the correct visa and work permit.

Who is at risk right now?

1) Small villa developers and nightly rental operators

If you market nightly/weekly stays without a hotel licence, run a Thai-majority company that is foreign-controlled in practice, or split projects across thin shell companies at one address, you are on the radar. The DBD now uses address clustering and shareholder patterns as red flags.

2) Foreign “helpers” and creatives without permits

Designers, carpenters, yoga instructors, content creators—whether paid or “helping a friend”—are being checked for work authorization; a recent craft/woodwork case became the cautionary example.

3) Service offices enabling paper shareholding

Accounting/registration shops that mass-register companies with proxy Thai shareholders at shared addresses have been singled out in Koh Phangan reporting and related probes.

What enforcement looks like on the islands (2025–26)

• Site inspections & document sweeps at villas, with interviews of foreign managers and Thai shareholders.
• Checks for nominee indicators: repeated addresses, welfare-card holders as “shareholders,” unusual director overlaps.
• Arrests for reserved work (even one-off, low-value jobs).
• Widening scope across Surat Thani (Samui/Phangan) as data-driven screening scales.

Compliance paths that actually work (and ones that don’t)

Legit options (case-by-case)

• Thai-majority company with real Thai partners, genuine capital, proper governance—and foreigners not managing FBA-restricted activities without permission.
• Foreign Business License (FBL) or Foreign Business Certificate where applicable.
• BOI promotion for eligible activities (note: typical villa/nightly rental operations are seldom BOI-eligible).
• Licensed hotel if offering daily/weekly stays; ensure correct land, building and environmental approvals; pay taxes.
• Correct visas + work permits for every foreigner who performs any work (including management/marketing).

Non-starters (don’t do these)

• Placing shares in the names of Thai “friends,” drivers’ relatives, or welfare-card holders while foreigners run the business.
• Mailbox hubs: registering many companies at a single address to mask control.
• “Freelancing” on tourist/ED/retirement visas. These are precisely what current inspections aim to uncover.

Practical checklist for Koh Phangan / Samui / Phuket investors

• Structure: If Thai majority is required, make it real—documented capital, Thai decision-making, arm’s-length loans. Company registration
• Licensing: If your model resembles a hotel, get a hotel licence or don’t do nightly rentals. Hotel licence guide
• Control: Where foreign management is essential, explore FBL / BOI; otherwise restrict roles and document boundaries.
• People: Audit everyone’s visa/work-permit status—including “helpers,” contractors and content crews. Visa overview • Work permit basics
• Addresses: Avoid mass registrations; maintain substance (office, staff, bookkeeping). TM30 obligations
• Paper trail: Keep shareholder funding, management contracts, and marketing consistent with your legal structure.
• Enforcement readiness: Train staff for inspections; assign a single spokesperson; keep corporate and HR files ready to show.

FAQs

Can a foreigner buy land on Koh Phangan?

Not directly in personal name. Most compliant structures involve Thai entities and/or long leases; nominee shareholding to disguise control is illegal under the FBA. Consider leases, substance-backed Thai majority, or eligible FBL/BOI routes. Real estate law overview

Is “helping a friend” for beer money legal?

If it’s work, it needs a work permit—and many hands-on jobs are reserved for Thais. Authorities have acted on very small “gigs.”

What changed in late 2025?

The DBD’s five-point crackdown adds in-person ID checks, welfare-card screening, and ≥5-company address scrutiny, directly targeting nominee structures.

Need tailored advice?

We help Slovak/Czech and EU clients structure compliant Thai ventures: FBL/BOI feasibility, Thai-majority with real partners, hotel licensing, and full visa + work permit planning. Contact us to review your structure before you invest or market a single villa night.

Sources

1. Thai Examiner: Koh Phangan crackdown continues (Nov 25, 2025)