Foreign Direct Investment Company Need Legal Consultant
Foreign Direct Investment Company needs all the required legal permits and regulations to operate in a country. No businesses are exempt from said requirements. Those that wish to expand their market in Indonesia must follow the local regulations set by the government. The local regulations are adjusted to the economic and business conditions of Indonesia resulting in regulations changes. Unfortunately, this information is sometimes not delivered to the public. To keep updated with the information, it is important for companies to have a legal consultant to support them.
Entrepreneurs who incorporate a corporate entity into the country will gain many benefits. The benefits of this legal protection include:
1. Legal Protection
Generating more profit for the company is usually the main concern for entrepreneurs. It is easy to forget that the safety and security of a company are crucial. To provide a safe and secure business environment, the government applies regulations for local and foreign direct investment companies. These rules are made to be strict to ensure that the business environment in the country remains safe. The repercussions of violating them can range from penalties to the revoking of a business permit. Without a legal entity or the required licenses, businesses may not be able to continue operating. To prevent this, it is important that the legality of the company is in accordance with statutory regulations.
2. Easy to Get Funding
To get funding for a business project is not a walk in a park. To attract investor or funders, it is important for the company to have proper legality. Proper legality allows the company to apply for these grants. Foreign direct investment company usually acquire these investments from financial institutions or investment companies. Those kinds of investors usually require the company to submit their profiles, including their legal documents. Without a convincing profile, funders will not be able to trust the company. To avoid this, a legal consultant is important to create a convincing profile. Legal consultants will make sure the company’s legal documents are proper.
3. Free to Run A Business
The benefits of having legal protection are the freedom to run a business. Having legal protection allows entrepreneurs, to manage their business well and continuously earn profits. The legal consultant of the company is responsible to give legal protection to the company. This gives the business the freedom to be innovative and creative in developing its products. If the products are interesting for the public, it will bring more profit for the company. All business sectors need special permits and registration to operate. Permits allow a business to continue operating.
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4. Safety and Assurance
The country’s rules and regulations apply to all companies, including Foreign Direct Investment Companies. It is important to have a legal consultant to make sure that the company complies with them. Indonesia’s statutory regulation (Pasal 6 UU PT), states that companies that listed as a legal entity have an unlimited time period to run their business. If the company has a legal consultant, they will be able to understand the rules and follow them.
5. Increase in Company Credibility
Proper legality will increase the credibility and professionalism of a company. Proper company legality shows that the business complies with government rules and regulations. If the company is compliant with legal regulations, clients will trust the product and services offered. The legal consultant of the company will make sure that legally the company is proper.
Above are the descriptions of the benefits of having a legal entity as a foreign direct investment company. Therefore, if you haven’t already, register your company with us and enjoy all the above benefits. Contact us through our live chat or send us an e-mail for more information.