During the third regular session of the National Assembly in its tenth term, Manuel Marrero, Prime Minister of Cuba, announced significant changes to the regulations for micro, small, and medium-sized enterprises (MSMEs) and self-employment.
Among the main changes for micro, small, and medium-sized enterprises (MSMEs) and Non-Agricultural Cooperatives (NACs), there is the decentralization of the approval authority to Municipal Management Boards (MMBs), the implementation of new regulations for approving corporate purposes, and the requirement to declare the legality of the origin of funds.
New requirements have also been established to become a partner or administrator, and an internal control system has been implemented. State-owned micro, small, and medium-sized enterprises will continue to be approved by the Ministry of Economy and Planning, and the migratory status of the effective resident is required to become a partner of a micro, small, and medium-sized enterprise or a non-agricultural cooperative. Approval deadlines have also been extended.
In addition, the new regulations include the opening of establishments outside the registered office with CAM approval, and the regulation of the dissolution of micro, small, and medium-sized enterprises (mipymes) and CNA. Corporate social responsibility is also established, as well as the obligation for partners not to act on behalf of or in the interest of another person.
Regarding the regulations for self-employment, the number of hired individuals will be limited to three, including family members, and affiliation to social security is mandatory.
In addition, self-employed workers that exceed a certain annual revenue threshold will be required to reorganize as legal entities.
Marrero emphasized that these measures are not a crusade against non-state management forms, nor a step back, but a necessary correction and reorientation for each economic actor to play their appropriate role.
It was also announced the creation of a new Institute for the Assistance to Non-State Economic Actors, whose headquarters and structure will be operational in September.
According to the Cuban Prime Minister, these reforms aim to strengthen the Cuban economy and ensure that all economic actors contribute effectively to the development of the country.
In his speech, Marrero emphasized that a thorough assessment was carried out of the 608 small and medium-sized enterprises that have reported losses. The results revealed that, in most cases, these losses were not real, but a consequence of poor accounting management.
During the parliamentary session, it was also revealed that the Cuban government has approved a series of specific measures including the establishment of payment of tariffs in foreign currency for non-state sector imports, the gradual and selective implementation of charges in foreign currency for port services, and the acceptance of cash in foreign currency in certain sectors and activities, such as tourism.
Regarding this issue, Marrero pointed out: "We cannot continue allowing so many goods to enter while still charging in national currency."
Recently, the Council of Ministers had announced the approval of six decree-laws, which they would present to the Council of State, updating the legal provisions for micro, small, and medium-sized enterprises, self-employed workers, and private sector companies in Cuba.
"Unlike what the enemies of the Revolution say, this is not a crusade against micro, small, and medium-sized enterprises or against non-state management. These are policies approved in the Congress of the Communist Party," Marrero said about the new decrees.
The extraordinary meeting took place on July 12. The Cuban Prime Minister stated that the initial regulations had legal loopholes that led to "distortions." Additionally, he acknowledged that there were errors on the part of the state counterpart when contracting services from the private sector.
The Cuban leader Miguel Díaz-Canel announced to the parliamentarians on Tuesday a plan for "reorganization" in the private and state sectors, due to the "irresponsible manner" in which some of these institutions are being run, he pointed out.
He insisted that it is not a witch hunt against a specific form of management or ownership; but the official discourse has been targeting SMEs for some months now, especially those that import finished products or do not comply with price caps.
The Minister of Finance and Prices in Cuba, Vladimir Regueiro Ale, last Monday warned owners of micro, small, and medium-sized enterprises that hiding merchandise and not selling it to the population is a "serious crime."
The official went on Cuban television to explain the first control measures that the government has agreed upon following the recent implementation of Resolution 225, which sets price ceilings for six essential products in the country.
Recently, the government of Las Tunas closed 12 of these forms of non-state management for violating the resolution that temporarily regulates the maximum retail prices in the marketing of six high-demand basic products.
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