Thailand's crackdown on nominee businesses in Phuket is still running as high season starts. On Sunday 8 November 2026 officials raided two unlicensed entertainment venues in Thalang district that were alleged to be foreign-owned through Thai nominees, the latest step in a campaign that began in June. Explera DMC Thailand explains what a nominee business is and what agents should ask their ground suppliers.
Explera handles ground arrangements as a Thailand DMC for travel agents. Its Thai company, Explera DMC Co., Ltd., holds TAT licence 14/05119, the Tourism Business Licence issued by the Department of Tourism, and the group is IATA TIDS-registered (96215733) and a member of ASTA (900408341). Write to b2b@explera.co.th.
What is a nominee business in Thailand?
Thai law limits foreign ownership in many service businesses. In a nominee arrangement, Thai nationals hold shares on paper for a foreign owner who really controls the company. That is illegal under the Foreign Business Act. A company with foreign shareholders is not a nominee for that reason alone, and police said in June that the operation was not intended to block foreign investment.
What has happened in Phuket since June?
These figures come from four reports in The Nation. Each belongs to its own date; do not add them together.
- 20 June 2026: authorities reviewed more than 30,000 registered companies in Phuket. More than 11,000 had foreign shareholders, and more than 600 were considered at risk of nominee arrangements. That is a screening result, not a finding. We have not found a newer total.
- 29 June 2026: the deputy interior minister said 159 companies had been referred to a review committee, legal action had been taken against 39 and 34 had been ordered to divest. The report did not say what the legal action was.
- 11 July 2026: the investigation covered 391 companies after two Patong hotels were found without licences.
- 9 November 2026: the Department of Provincial Administration reported its 8 November raids on two unnamed venues in Thalang. Neither held an entertainment venue licence, and the department is preparing to ask the Phuket governor to close both for five years. The nominee ownership is an allegation, not a court finding.
Why does this matter to a travel agent?
A supplier that is ordered to close in the middle of the season cannot deliver what you booked, and the booking has to be moved at short notice in the busiest weeks of the year. The risk is highest with small operators found online and contracted directly. You cannot read a Thai share register from abroad, but you can ask direct questions, and a Thailand DMC should be able to answer them.
What should you ask a Thailand DMC or supplier?
- The registered company. Ask for the company name and its Department of Business Development (DBD) registration number, and check that the same name is on the contract, the invoice and the bank account.
- The licence, and who holds it. A tour operator needs a Tourism Business Licence and a hotel needs a hotel licence, in the name of the company you are paying.
- The fallback. Ask what happens to your booking if a hotel or venue in the programme is closed.
Our own answers: you contract with Explera DMC Co., Ltd., DBD registration 0115553008378, which holds TAT licence 14/05119 in its own name. Both are on our trade credentials page. For hotels, see our post on the Phuket hotel licensing backlog. Our hotel bookings team can check a property before you contract it, our Phuket guide covers the island by area, and everything else is on the Thailand DMC services page.
What does the crackdown not mean for visitors?
It is aimed at how companies are owned and licensed, not at tourists. We have seen no report of holidaymakers being targeted and no change to entry rules linked to it. Nor does it make foreign-run businesses in Phuket illegal. The effect on a client is indirect: a venue or property in the itinerary could be closed.
Next steps
Send us your Phuket programme, dates and the suppliers you already use through our contact page. The trade desk replies within 24 hours and will tell you what we can confirm.
Sources
- The Nation, 9 November 2026: Two Phuket entertainment venues face five-year closure after raids
- The Nation, 20 June 2026: Authorities flag over 600 Phuket firms in foreign nominee business crackdown
- The Nation, 29 June 2026: Thailand accelerates Phuket tourism clean-up amid nominee crackdown
- The Nation, 11 July 2026: Two Phuket hotels found unlicensed as nominee probe expands to 391 firms
Frequently asked questions
What is a nominee company in Thailand?
A company in which Thai nationals hold shares on paper for a foreign owner who really controls it. Foreign shareholders alone do not make a company a nominee.
How many Phuket companies are under investigation?
There is no single current figure. In June more than 600 of over 30,000 companies were flagged as at risk, and on 11 July 391 were under examination.
Does the crackdown affect tourists in Phuket?
Not directly. It targets company ownership and licences. A client is affected only if a venue, property or operator in the itinerary is closed.
What should an agent ask a ground supplier?
The registered company name and DBD number, the licence for the activity and which company holds it, and what happens to the booking if a supplier in the programme is closed.
