Avoid scams
What your formation contract should say about refunds
A useful contract explains what the provider will do and what happens when events do not go to plan. Read the refund terms before sending a deposit, particularly if a package combines incorporation with banking, licensing or immigration assistance. A short sales message is not a substitute for a clear service agreement.
Define the deliverable
Specify the entity type, jurisdiction, proposed activity and services being purchased. Identify which outcomes depend on an authority or third party. Ask whether the provider is promising preparation, submission or approval. Make sure the contract names the legal supplier and explains whether any work will be subcontracted.
Separate fees that may be recoverable
Ask what happens before work begins, after documents are prepared, after submission and after an authority rejects the application. Distinguish official charges already paid from the provider’s fees. Do not assume every deposit must be refundable or every “non-refundable” label settles the legal position; local consumer and contract rules may matter.
Make disputes manageable
Request contact details for complaints, a process for raising errors and a way to obtain your records. Ask what counts as completion and how you can verify it. Keep dated copies of the proposal, terms and any agreed changes. If the transaction is substantial or the terms unclear, get independent legal advice before signing.
Put it into practice
- Identify the legal contracting party.
- Define each paid service and its completion point.
- Record exclusions and third-party dependencies.
- Clarify rejection, cancellation and rework costs.
- Keep all promises that influenced your decision in writing.
Your next step
Ask the provider to explain a realistic rejected-application scenario using the actual contract. The answer should identify the work completed, the money spent and any refund due.
Official sources & scope
FTC guidance highlights misleading offers and pressure targeting small businesses. The contract checklist here is general planning guidance, not a universal statement of refund rights.
General planning information. Country-specific rules and individual circumstances need separate verification. Examples are illustrative; no savings or application outcome is guaranteed.