Actually users cannnot apply categories to folders that they have created (or I don't know how ...). That's quite annoying, as adding custom fields to a record can be only made using categories, and only the administrator can link the categoriey to the folders.
It would be better to create templates that users can apply to created folders to add the custom fields without requesting it by the administrator. Templates should also contain none (standard), one or more categories.
When adding a new folder, the user has to set the standard settings (name, parent folder, password complexity) plus additionally define the template to use.
Thanks in advance and kind regards
Customer support service by UserEcho