Cuba Formally Integrates Private Companies with Over 100 Employees into Legal Framework

The Cuban State Council has officially updated the legal framework to include private companies with more than 100 employees, as announced in the revised text of Decree-Law 88. This update, reflecting changes to the non-state sector set for 2026, was published in the Official Gazette on September 7.

Featured in Special Edition No. 12 of the 2026 Official Gazette, the document revises and consolidates modifications to Decree-Law 88, which was initially enacted on July 13, 2024.

The most significant update introduces a fourth business category. Companies are now classified based on the number of employees, including partners: micro-enterprises (1-10 people), small businesses (11-35), medium-sized enterprises (36-100), and private companies for those with over 100 employees.

This legal change implements a measure the Cuban regime announced earlier. In June, the government decided to lift the 100-employee cap on private businesses as part of a broader economic reform package.

Autonomy and Obligations of New Business Entities

Decree-Law 88's new version stipulates that these economic units possess legal personality and can be state-owned, privately held, mixed, or owned by political, mass, and social organizations.

The law confirms their "business autonomy within current legislation" and holds them accountable with their assets for fiscal, credit, labor, environmental, contractual, health, urban planning, security, and other legal obligations.

These enterprises must register all operations in current bank accounts, trade goods and services in Cuban pesos—except where otherwise legislated—implement internal control systems, comply with e-commerce regulations, provide statistical data, and keep their details current in the Mercantile Registry.

Business Capabilities and External Partners

Enterprises have the freedom to manage and allocate their assets, determine the products and services they offer, choose suppliers and clients, and set prices as per the Ministry of Finance's guidelines.

They can also export and import independently, though prior authorization from the Ministry of Foreign Trade and Foreign Investment is required. Additionally, they are permitted to invest, partner with foreign capital to achieve their business objectives, establish non-legal entities within or outside their province, and access any legal financing sources.

A notable change affects Cubans living abroad. The updated Decree-Law allows Cuban nationals residing either domestically or overseas, as well as foreign permanent residents in Cuba, to be partners in private companies.

Moreover, one individual may be a partner in multiple micro, small, or medium enterprises, as well as in private companies with over 100 employees. This opportunity was previously hinted at by the government in March, indicating that Cubans abroad could engage in or own businesses on the island.

Regulatory Oversight and Future Implementation

Despite these openings, the regulation maintains control mechanisms over the sector. Companies are required not to engage in "criminal or illicit acts, particularly those threatening state security."

The law also prohibits them from involvement in money laundering, terrorism financing, or the proliferation of weapons of mass destruction, either directly or through intermediaries.

The approval process for these economic actors has also been adjusted. Temporarily, the Ministry of Economy and Planning will continue to approve and modify micro, small, medium enterprises, and private companies with more than 100 employees.

However, these responsibilities must transition to municipal administration councils within 180 days after the Decree-Law's enactment.

The original Decree-Law 88, enacted in July 2024, repealed Decree-Law 46 of August 2021, which had established the previous legal framework for small and medium-sized enterprises in Cuba.

Following this, Decree-Law 133 of August 19, 2026, introduced modifications that brought private companies with over 100 employees into the fold and mandated the updating of Decree-Laws 88, 89, and 90. Therefore, the Special Gazette published on September 7 does not represent a new Decree-Law 88 but provides the updated text with accumulated amendments, serving as a reference for current regulations affecting these economic actors.