For the first time in five decades, Cuba has appealed to private companies

The decree establishes that the smallest companies can have from 1 to 10 employees and the large ones up to 100. They must first be registered in the trade register and approved by the Ministry of the Economy. In the new economic provision, the Cuban government will allow all activities, with a few exceptions, such as the publication of newspapers or magazines, education or those related to professions such as architects or lawyers.

“There was a euphemism for calling a restaurateur when he had hired 70 workers. In practice, it was already necessary to create legal companies. I think the good thing about these legal standards is that they have arrived, ”says economist Omar Everlenys Pérez. These reforms come after the political crisis that sparked opposition protests in July, when thousands took to the streets to reject shortages and power cuts. In 2020, the island’s gross domestic product (GDP) fell by 11%.

On the first day of the call to open small and medium-sized businesses in Cuba, 75 applications were submitted, the economy ministry said. The island’s small and medium-sized industries (SMEs) were closed or absorbed by the state as part of an offensive against private property in 1968. It will also allow the formation of cooperatives.

A timid opening reform initiated by the former president Raul Castro It had already allowed private initiative, but still as an independent and not as a company with its own legal personality, as demanded by entrepreneurs and experts. The authorities have indicated that in this first “call”, they will provide access to applications for recognition for SMEs that produce food or have technological development as software companies.