The government has put almost 23,000 companies on a blacklist of firms that pose a risk to do business with as they have not given the exact locations of their offices or submitted annual financial statements as required.
According to Pongpun Gearaviriyapun, director-general of the Business Development Department, following inspections of 635,000 juristic persons registered with the department, 22,992 of them were found questionable, deserving special care in doing business with or contacting them.
Ms Pongpun said the department has written remarks at the end of the certifications for all juristic persons that the public or other businesses can examine through the department's e-Service application by keying in the names of juristic persons.
The remarks mean the department has determined those companies require special care, she said.
Ms Pongpun said of the total 22,992 questionable firms, 7,293 were found to have no headquarters as registered, 4,054 failed to submit annual financial statements as required, and 11,293 have not answered queries concerning their financial statements.
Others include juristic persons with names that resemble large or famous companies to mislead the public, firms that had their business registration revoked, and companies associated with Tranlee Travel Co, suspected of being an illegal nominee tour firm for foreign interests.
Authorities early this month raided and inspected 17 tourism-related operators in Phuket and Phangnga on suspicion they were acting as nominees for foreigners. The firms are associated with Tranlee Travel Co.
Such companies operate tourism-related businesses such as hotels, tour buses, ferries, restaurants and souvenir shops.
Authorities are investigating whether shareholders and directors were involved or aware of their nominee status. If so, the department will revoke their business registration.
Ms Pongpun also warned people to pay special attention to companies that exaggerate their registered capital.
The department has been investigating firms that reported registered capital of more than 5 million baht to see whether such capital is paid.
However, for juristic persons that run businesses with honesty, accountability and good corporate governance, the department offers accolades, putting remarks at the end of certifications for juristic persons.
She said the department is also committed to teaming up with anti-corruption organisations to choose companies with policies against corruption and kickbacks. For them, the department will add positive remarks at the end of their certificates.
According to the Business Development Department, new business registrations totalled 31,792 in the first six months of 2016, up 1% over the same period last year. They had a combined registered capital of 127 billion baht, a rise of 35% year-on-year.
The new registrations were mostly in construction, machinery sales and food/restaurants.