The Director-General of the Department of Business Development (DBD), Ministry of Commerce, has announced that new regulatory measures will be applied to address fraudulent business registrations after discovering that companies were set up to be used as vehicles for call center scams, using property address without the consent or acknowledgement from the property owner. In response, the DBD will introduce stricter requirements to mitigate such risks.
The key regulatory measures include:
1. Enhanced Documentation Requirements for Business Registration
Any new corporate entity registration or changing of an office address will be subject to additional documentation requirements. Registrants must provide verifiable evidence of legal permission to use the declared address, including but not limited to lease agreements or written consent from the property owner. However, a public hearing process will be undertaken to assess the implications of this requirement, with anticipated enforcement within one month.
2. Implementation of a Public Verification System for Registered Addresses
A verification system will be introduced to allow individuals to ascertain whether their residential address has been used for corporate registration without their authorization. This system is expected to be operational within two weeks. In the event of unauthorized use, affected parties may submit complaints to the DBD via email at cgbusiness@dbd.go.th (for Bangkok) or contact the DBD hotline at 1570. Entities found to have misrepresented their registered address will be flagged in the DBD system and reported to law enforcement authorities for legal proceedings.
3. Collaboration withThailand Post for Address Verification
The DBD, in cooperation with Thailand Post, will implement a verification mechanism whereby registered business addresses will be subject to on-site inspections. Verified locations will be geo-tagged and documented using Google Maps, thereby enhancing transparency and ensuring compliance with registration requirements.
4. Legal Consequences for Non-Compliance
In case where a corporate entity is found to be operating at an address inconsistent with its registered information, the DBD will undertake corrective measures, including annotating the company’s registration certificate with a note/remark indicating “No Valid Registered Address.” This remark serves as a cautionary notice to potential business partners. Furthermore, violators will be subject to legal action under applicable statutes governing fraudulent declarations in business registration.
Although these requirements are already in place with the Revenue Department when registering for VAT and the Social Security Office when registering for employer or change of address, where a lease agreement, a consent letter, and photos of the business operation place are normally required, they will now also apply to the DBD at the initial stage of company establishment.
These measures are designed to enhance the integrity of corporate registration, safeguard public interests, and deter fraudulent activities. However, this may impact foreign investors intending to establish genuine business entities in Thailand. It is advisable to be aware of the potential challenges posed by these new requirements, particularly for those utilizing virtual addresses without a physical office presence, or for premises which obtaining a consent letter from the owner could take time, such as a large organization or property management fund. This may lead to delays in the company establishment plan.
To ensure compliance, it is important for businesses to check and prepare all necessary documents as evidence in advance for inspection by the DBD and to carefully select a legally valid registered office address to facilitate smooth registration and avoid potential legal complications.
