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are there specific areas that units assigned to these army goups be in operating? are there penalties other then being in range of Hq units? also i have noticed that units assigned to certain commands have a max amount of units that should be assigned, what is the penalty for going over that limit???

I wouldn’t worry about going over the Hq limit by a unit or two.

The big exception that units in commands on assault status must not be overloaded anywhere in the command chain, else you will lose the benefits of assault status, which are well worth having.

Remember you can always assign a corps/unit in an irrelevant sector to OKH. This will ease management of these factors. Be aware that these units will probably fail some of their admin rolls, therefore ending up with missing supply and could also end up with lower MPs.

To answer your other question, there aren't any restrictions or penalties on the region that specific hqs operate in. if you want to reshuffle everything and have Army Group North commanding troops in Ukraine, there's nothing stopping you. It just might make things more confusing at a glance.