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In Europa Universalis IV republics only allow 20 provinces in states without penalties. Is there any sort of republic government where there is more than 20 province limit or anyway bypass it?

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Only the merchant republic has this penalty. By the time you actually get to 20+ provinces as a merchant republic other forms should be available.

Further information: Republics on the wiki

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Oligargic Republic is what you are looking for.

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