This form of company is the most frequently encountered in Romania due to the fact that it is the company whose corporate obligations are guaranteed with its capital assets, and the associates are liable only within the limit of their contribution. The establishment of the company is made by the memorandum of association and articles of association or by a single document called ”articles of incorporation” and it may also be established by the act of free choice of a single person. In this case, the company will have a sole shareholder. The content of the articles of incorporation underlying the establishment of the company is regulated by Art. 7 of Law 31/1990, updated in 2018.
The limited liability company has a limited number of associates, its share capital is divided into shares, and the liability of the associates is limited.