Nominee structure

Definition

An illegal arrangement in Thailand involving the use of Thai nominees (employees, friends, real estate agents) to formally hold 51% of a company intended to purchase land or a villa on behalf of a foreigner. The Foreign Business Act (B.E. 2542, Section 36) penalizes the nominee with fines ranging from 200,000 to 1 million THB and up to 3 years imprisonment, and triggers the cancellation of the sale with possible asset seizure in favor of the State. Thai authorities have intensified controls since 2020. The only legal alternatives are BOI 7.32 or leasehold arrangements.