The legal entity type in Romania known as Societate cu Răspundere Limitată (SRL) offers limited liability for its owners, making it a popular choice for private ownership. However, there are some drawbacks to consider. Capital injection is not mandatory, but at least RON 200 must be paid up. This means that there is no minimum initial investment required, but the company must have at least RON 200 in capital. Additionally, a local director is not mandatory, but a local secretary is required. This can be seen as both a positive and negative aspect, as it may make it easier to set up a business in Romania, but may also limit the control of the company. Overall, the SRL offers limited liability and flexibility in terms of capital injection, but also has some requirements that must be met, such as having at least one director and shareholder.