Your response just proves his point. All of that paperwork, all of those contracts- that assumes you can trust the government to fairly enforce the law.

In a society where corruption rules, you have no reason to spend time and money on any of that because you know you’re one bribe away from it all being kindling for your next bonfire.

So yes, in areas with low corruption they don’t bother. They either just set aside some cash to pay off whatever official they need to if things go sideways, or they hire the local judge’s son to an empty position of power so that they can win anything that goes to “court”. That’s not a sign of high trust, that’s an acknowledgment there’s no point in bothering.