Cuba allows private companies with more than 100 workers, expands rights for small businesses

Mariam Ashalem De Andres

Cuba has removed the 100-worker limit for private businesses and expanded the role of micro, small and medium-sized enterprises (MSMEs) under new regulations published Wednesday.

The changes were established through Decree-Law 133/2026, published in Cuba’s Official Gazette, which modifies previous regulations governing MSMEs, non-agricultural cooperatives and self-employed workers.

Businesses with one to 10 workers are classified as microenterprises, 11 to 35 as small businesses and those with 36 to 100 as medium-sized enterprises.

Businesses employing more than 100 people will now be classified as private companies, allowing them to grow beyond the previous limit.

The measure also grants private companies and MSMEs the ability to directly import and export goods and services, although the operations require authorization from the Ministry of Foreign Trade and Investment.

The new regulations also recognize private companies’ ability to associate with foreign capital, subject to existing Cuban legislation.

Cubans living abroad will also be allowed to become partners in private companies on the island, while individuals will be permitted to hold stakes in more than one company.

The new rules, however, preserve state oversight of private businesses. Government agencies and authorities retain regulatory, inspection and control powers over private companies and other non-state economic actors.

The changes are part of a broader package of economic measures announced by the government this year as it seeks to address a deepening economic crisis.

Cuba has faced severe fuel shortages, prolonged power outages, shortages of essential goods and declining production, while the government has sought to increase investment and economic activity.

The government has also moved to expand the role of private businesses and improve their links with state-owned companies.

The latest measures build on the introduction of MSMEs in 2021, which marked a major expansion of private economic activity after decades of restrictions.

The government has continued to emphasize that the private sector will operate within Cuba’s socialist economic system and under state regulation.