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Furthermore, the headquarters of the new company is also of considerable importance, as inpractice there are many cases when the setting up of a company is delayed because of it lacks asuitable seat.In order to choose the headquarters’ location, there are several possibilities. Thus, in casecollaboration exists with a local partner, the last mentioned company shall more often assumethe task of identifying a suitable location, either through its own representatives or by resortingto a real estate agent. In all cases, the legal aspect should not be overlooked, because in order toregister the new company it’s necessary to bring the so called “proof of the headquarters” –namely either a lease contract, a property title if the new seat is purchased or anotherdocument attesting the right of use the respective location –, and to register it at the competenttax authorities, followed by its’ attachment to the registration file that shall be transmitted tothe Trade Register.As regards the acquisition of land, we would like to point out that the Romanian subsidiary of aforeign company is considered to be a Romanian legal person and thus is competent to fullyacquire and transfer lands and other real estates in Romania. Nevertheless, the relevantlegislation has been amended at the same time with the EU accession of Romania, meaningthat, at present time, foreign legal persons can acquire lands in Romania but only under certainrestrictive conditions.The legal framework for the land acquisition is the Law 312/2005, law that establishes thedifference between incorporated and unincorporated areas, and also between inner and outerlands.Foreigners, natural or legal persons, which are not Romanian residents, may acquire land inRomania for setting up branches only after a period of 5 years from the Romania’s accession tothe EU has passed. This means that from 2012 this restriction shall not be applicable anymore.In respect to the property right of the foreigners upon agricultural lands, forests and forestrylands, the Romanian law mentioned above establishes a condition according to which thesepersons can not acquire such lands during a 7 years period starting from the moment whenRomania was accepted as member state within the EU, meaning that from 2014 this conditionshall no longer be applicable.Regarding the company’s object of activity, in Romania, unlike in other states, the legislationprovides a classification of the economic activities – classification also known as the CAENclassification –, that must be observed when defining an article of association.In respect to the company’s management, many foreign companies prefer to appoint both aRomanian manager and a foreign one who will implement the strategy of the parent companyand will exercise a certain control upon all the staff’s activity. Therefore, when drafting thearticle of association, certain aspects must be taken into consideration, such as the expressestablishment of the transactions subjects to the general assembly’s approval, the advantages ofthe management contract by comparison with the individual labor contract, as well as theprecise separation of the attributions in case the company has several managers.8