Bangkok: The Ministry of Commerce has initiated an investigation into three Chinese applications, "Gokoo," "Feixiang," and "E-Gets," suspecting they may be violating Thai laws by using nominees. The Ministry is conducting an in-depth analysis of the shareholder structures and business operations of these platforms to ensure compliance with the Foreign Business Act and other relevant legal frameworks.
According to Thai News Agency, Mr. Poonpong Naiyanapakorn, Director-General of the Department of Business Development, revealed that the investigation was prompted by reports of Chinese platforms offering services such as food delivery to tourists and Chinese residents in Thailand, who find it challenging to use Thai delivery applications. The Ministry is closely examining the legal status and shareholder composition of these companies to ascertain their adherence to the law.
Initial findings indicate that Goku Online Co., Ltd., registered in September 2020 with 80% Thai shareholders, and The Fly Holdings (Thailand) Co., Ltd., registered in September 2021 with 51% Thai shareholders, are classified as Thai legal entities. However, E-Gets Technology (Thailand) Co., Ltd., registered in August 2023 with 90% Cambodian shareholders, is categorized as a foreign legal entity under the Foreign Business Act.
The Department is working with relevant agencies to scrutinize the origins of investment funds, management authority, and shareholder relationships. The investigation aims to determine whether Thai nationals are being used as nominees by foreign entities to bypass legal business permits. Thai legal entities found guilty of using nominees could face imprisonment and heavy fines, while foreign entities operating without proper permits could also incur significant penalties.
These platforms primarily target Chinese customers in Thailand and offer services in Chinese using various electronic payment systems. The Department is committed to preventing any negative impact on Thai businesses and ensuring fair competition. The ongoing investigation is part of a broader government initiative to curb the misuse of Thai nationals as nominees and safeguard the interests of local entrepreneurs.
Mr. Poonpong emphasized the importance of facilitating legal and transparent foreign investments in Thailand, stating that the Department will continue to monitor businesses at risk and take necessary legal actions if any violations are found. The investigation is ongoing, and businesses are presumed compliant until proven otherwise.