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4. The setting up procedure of a foreign company’s branch office in RomaniaAccording to the Romanian legislation, a company may set up two types of legal entities: onethat has judicial personality – called “filială”, and the other that does not have judicialpersonality – called “sucursală”, each one having as correspondent a specific set up procedure.In consideration of the fact that the grate majority of foreign companies decide to set up the lastmentioned structure in Romania, we shall present in the followings the steps that must be takenin order to perform this operation.In this matter, the authority of the Trade Register from where the headquarters of the newbranch will be established and registered shall be considered to be a competent authority. Thus,the foreign mother company must prepare a file containing the general documents required bythe Romanian legislation for setting up a branch in Romania, such as: the company’s decision bywhich the setting up of the branch is decided, the document that asserts the right of use uponthe immovable that shall be used as headquarters of the branch, the financial statements of thecompany drafted in accordance with the legislation of the state where the company’sheadquarters is registered, the company’s Registration Document or Certificate having suchstatute, issued by the foreign authorities, in a translated and notarised form, letter of goodstanding issued by at least a bank that works with the company, a detailed description of theobject of activity in accordance with the CAEN, different notarized liability statements, thenotarised power of attorney for the person that will submit the necessary documents in order toregister the branch or an attorney delegation, the proof of registration tax payment etc.Also, according to the Romanian legislation in force, all the documents must be drafted either inRomanian language or in a bilingual form (one of the two languages being the Romanianlanguage) or they must be translated by an authorised person in Romanian language.V. TAX LAW1. General taxes and feesThe Fiscal Code, regulation governing the tax system, applies upon the following taxes and fees:a) the profit tax;b) income tax – payable by the natural persons;c) the tax on the small enterprises’ income;d) the tax on the incomes obtained by the non residents in Romania;e) branch taxes;f) value added tax (VAT);g) excise;h) local fees and taxes.2. The tax per profitAccording to the provisions of the Fiscal Code, the profit tax shall be paid by the following taxpayers:9