1.

Which are the legal requirements for launching the

new line? Take into consideration that we speak about a
new activity and a new trademark.
The first step in setting up the new branch is assigning the creation of the trade-mark. The
Constitutive Act has to be observed and concluded. As a company by shares this includes the
concluding of the company contract and articles of association. All associates and/or founders
have to sign and be supervised by a public notary. All shareholders will have to be presented
with the risks of this investment, meaning high cost and certain legal set-backs created by the
trademark. The Constructive Act shall mention the affiliation to VegaSteel with identification
under the trademark and with the description of the companys object of activity, specifying
the main field of activity, the creation of steel pipes with smaller diameter used in civil
installations. The capital mentioned will be greater than $5000000 and other general elements
such as the subscribed and paid-up registered capital and the appointment of the
administrator/s for the new branch along with management and bodies of control. As the
activity and trademark are new we should declare the types of taxes and insurance we decide
upon.
The next step is the incorporation of the company in the Register of trade within 15 days of
the conclusion of the Constitutive Act on the basis of an application registered at the Office of
the Register of Trade.
The publicity of the setting up will be pursued after the publishing of the judgment of
authorization provided by the delegated judge in the Official Monitor of Romania. We have to
see the professional obligations of the merchant status be met in good order, this being done
by setting up the books containing the journal ledgers, inventory ledgers and general ledgers.
While the contributions of the shareholders are already in place, we have to introduce them
officially under the new branch and trademark so that in exchange for their contribution, each
associate will be able to get, legally, parts of interest, social parts or shares. The contributions
can be made to the registered capital or through goods provided. Evaluation of the objects of
the contribution by a legal expert may be required.