When Too Much Freedom Becomes a Problem: Company Formation Across Borders

When it comes to company formation, laws can be very different depending on where you are.

🌍 In some countries, you can set up a company with an unlimited scope of activities — basically, “we’ll do anything the law doesn’t forbid.”
📜 In others, the rules are strict: your company must state exactly what it will do (consulting, construction, retail, etc.), and you’re expected to stick to that list.

Now, here’s the hilarious twist. A notary recently refused to validate a transaction because the transferee company (set up abroad under the broad “all permitted by the law” formula) was dealing with a transferor in a country where the law only accepts narrow, defined activities. The notary even flagged it as a potential AML red flag.

⚖️ Moral of the story? If you’re forming a company in one of those “flexible” jurisdictions, remember: what looks like freedom at home can turn into a headache abroad. Better to plan ahead than get stuck at the notary’s desk.