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This is legal. The only problem I can think, which they wanted to follow up few years ago, was that the company had real investors as shareholders. Because they found out that a large number of companies had the same shareholders, e.g. a lawyer used the same names for all companies he setup.
Nothing happened thought.
It may be an easy way to pay people to do everything for you but you are responsible at the end. It also may be an good idea to learn how this work, e.g. learn the prcedures and where the offiices are located, Labour department (Work Permit), Company registration office (all documents for your company), Revenue department (taxes, guarantee paper for work permit renewals) and so on.
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