Cuba authorizes the creation of private enterprises with more than 100 workers as part of the regime's economic reforms

Cuba has approved the creation of private companies with more than 100 employees, marking a new phase in economic reforms under the government. The measure was announced through Decree-Law 133, published by the Council of State, which allows the establishment of such enterprises as part of broader changes introduced in June. These businesses will operate under specific legal structures, S.R.L. for multiple owners and S.U.R.L. for sole proprietors, and can open branches in any province within the country. The law comes into effect seven days after its publication in the Official Gazette. It forms part of 176 economic and social reforms adopted by the Cuban government, aimed at expanding the role of the private sector and foreign investment. Under these rules, all financial transactions must take place through current bank accounts, and commercial activities will primarily occur in Cuban pesos unless otherwise permitted by legislation. Before approval, the Central Bank requires initial capital deposits in temporary accounts, with proof of legitimate funding sources. Private companies will have autonomy in setting prices, subject to government regulations, and will be allowed to determine wages for their workers. They may engage in international trade with authorization from the Ministry of Commerce, and partnerships with foreign capital are permitted. Ownership is restricted to Cubans, both domestic and abroad, and foreigners residing in the country. However, state officials and individuals with criminal records or outstanding debts are barred from participating. The law mandates that these enterprises fulfill a "social responsibility," contributing to community welfare. Cooperatives, too, gain expanded capabilities, including geographical expansion and international trade, while operating exclusively in Cuban pesos. Workers who operate independently may collaborate with family members on a limited basis, though they are allowed up to three months of annual travel abroad without losing their license. Salaries must be banked if they employ others. In parallel, Resolution 30/2026 from the Ministry of Education permits the operation of private childcare centers, known as "Casas de Cuidado Infantil." Caregivers must complete training programs and demonstrate respect for national symbols and societal values. Private language classes are also authorized, requiring instructors to achieve a minimum B1 proficiency level recognized by the state. Additionally, private tutoring is permitted, allowing public education teachers to offer supplementary lessons outside their official hours. These tutors may not issue certificates or use official facilities and books, but they must provide free classes to vulnerable children in their communities. The reforms also extend to the real estate sector, enabling property owners to lease to private companies and cooperatives. All rentals must maintain records of occupants over five years, with data reporting required for both Cuban residents abroad and foreigners. These measures represent a significant shift in Cuba’s economic policy, aiming to diversify income sources and attract external investments. While the reforms emphasize compliance with state guidelines, they signal a gradual liberalization of business practices, reflecting ongoing efforts to modernize the economy. The implementation of these policies will likely face challenges, including regulatory enforcement and integration with existing systems. As the reforms take shape, further developments in this area are anticipated.