Deşi există, bineînţeles, mai multe exemple a ambelor variante, trebuie să spun că mie nu-mi place deloc "setting-up", personal.

Phrasal verbs like "set up" etc. have a tendency to be used more in colloquial speech than in writing - and nouns created from them can sound very awkward (e.g. "putting-off of" etc.) To me, "setting-up of" is inelegant and does not sound appropriate for a formal style at all. "Establishment" is much more suitable for this sort of context.

"Urban parks have lacked strategic support... as a result, various campaigns have urged the *establishment of a national agency* with a remit for..."
http://www.publications.parliament.uk/pa/cm199899/cmselect/c...

It might also be worth mentioning the parallel French "création, organisation et fonctionnement", e.g.

"Décret exécutif n°2000-253 du 23 Joumada El Oula 1421 correspondant au 23 août 2000 portant *création, organisation et fonctionnement* de l'Institut national de la prévention des risques professionnels..."

"Executive Decree No.2000-253 of Joumada El Oula 1421 (23 Aug. 2000) concerning the *establishment, organization and operation* of the National Institute for the Prevention of Occupational Risks..."

http://www.ilo.org/dyn/cisdoc/cisdoc_legosh.view_record?p_mf...

I can see no real reason not to use "creation" for "înfiinţare" in the context of a national agency (our government loves creating new ones)...

"However, I accept that the noble Baroness raised important issues in favour of giving recognition to the importance of public health service in the way that she suggested... I have already mentioned the *creation of the new national agency*..."
http://www.publications.parliament.uk/pa/ld200102/ldhansrd/v...

...only in the particular phrase you are dealing with, of course, three words in a row ending with "-ation" would have a rather tedious sound!

I have no real problem with "functioning" but would suggest "operation" as an alternative.

"IMMSA provides management expertise and experience to assist Councils, community and environmental groups in the *establishment, organisation and operation* of volunteer action groups capable of implementing..."
http://www.immsa.com.au/what.htm

"Article 1
This Act lays down the *establishment, organisation and operation* of a public institute performing the assignments of a national accreditation service..."
http://ec.europa.eu/enterprise/events/pecas/slovenia/doc1.pd...

"The proposed AOSG B1, designated as Director, MPFO, will be responsible to SFS for...

...taking a leading role in the development of preliminary ideas on the *establishment, organisation, and operation* of the future MPFA."
http://www.legco.gov.hk/yr95-96/english/fc/fc/papers/f090212...