The Council of State of Cuba published this Wednesday the , a regulation that establishes the general principles for the organization and operation of the state business system, and recognizes the financial, economic, administrative, and management autonomy of socialist state enterprises.
The provision was published in the , on pages 2 to 17, and is signed by Juan Esteban Lazo Hernández, president of the National Assembly of People's Power.
The decree-law is based on Article 27 of the Cuban Constitution, which defines the socialist state enterprise as "the main subject of the national economy" and recognizes its autonomy in administration and management.
According to the text of the regulation, the state enterprise system consists of the socialist state enterprise and the business group, and the enterprise can take on three legal forms: state enterprise proper, subsidiary, or commercial company.
The decree classifies companies into four categories: strategic, social protection and public service, competitive, and science and technology.
Among the essential objectives outlined in the regulation are decentralizing the authority to create state-owned enterprises, "promoting the economic, financial, administrative, and managerial autonomy of the enterprise," and "strengthening the economy's capacity to export, generate foreign currency, and integrate into the international economy."
The management of the system is under the National Institute of State Business Assets (INAEES), created in January 2026 as an entity subordinate to the Council of Ministers to lead the transformations of the Cuban state enterprise sector, which includes more than 2,000 companies.
The decree-law itself states that its implementation "involves the gradual transfer of responsibility from the entities that make up the state business system to the aforementioned Institute."
The regulation also governs corporate social responsibility and the governing bodies of each company, including the owner’s representative —a role assumed by the State— and the management board.
The Decree-Law 120 is part of the implementation of the 176 measures for economic and social transformation approved by the National Assembly on June 18 and 19, 2026, which positioned the reform of the state enterprise system as one of its central pillars.
The State Council had approved the regulation in a special session held in July, chaired by Lazo Hernández, prior to its official publication this Wednesday.
Alongside Decree-Law 120, Gazette No. 72 includes four complementary regulations: Resolution 170/2026 from the Ministry of Finance and Prices, which regulates the financial and tax procedures of the state enterprise system, and Resolutions 1, 2, and 3/2026 from INAEES, which address organizational movements and social objectives, financial relations with the State, and the organizational structure of the governing boards, respectively.
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