Real Case: American Entrepreneur Deported for Nominee Use

Let's look at a real enforcement case that shows exactly what happens when nominee arrangements are discovered.

 

The Setup

An American entrepreneur had been running a successful software company in Bangkok for 5 years. To avoid the "hassle" of BOI application, he used a common structure:

• 49% ownership in his name
• 51% ownership held by a Thai friend
• All decisions made by the American
• All profits transferred to the American
• Thai shareholder received a small monthly "fee"

 

The Investigation

In 2023, the Department of Business Development (DBD) flagged the company during routine analysis. Red flags included:

• Bank statements showing all withdrawals to foreign account
• No dividends ever paid to Thai shareholder
• Board minutes showing one person making all decisions
• Employee interviews confirming foreign control

 

The Consequences

For the American:

• Fine: 50,000 THB
• Business operations ceased immediately
• Company assets seized (~500,000 THB)
• Deported from Thailand
• 5-year ban on re-entry
• Blacklisted from future business registration

For the Thai nominee:

• Criminal charges filed
• Fine: 100,000 THB
• Professional reputation destroyed

 

The Irony

The business would have easily qualified for BOI promotion. The software development activity was Category 5.8—eligible for 100% foreign ownership and 8 years of tax exemption.

By trying to save time, the entrepreneur lost everything.

 

The Lesson

There are legal pathways to 100% ownership. Take the time to do it right.

 

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