The Council of State of Cuba published in the Official Gazette the updated, revised, and agreed text of the , which formally incorporates into the Cuban legal framework the private companies with more than 100 employees, as part of the changes applied to the non-state sector during 2026.
The text appears in the , published on September 7, and provides an updated, reviewed, and consolidated account of the modifications made to Decree-Law 88, originally approved on July 13, 2024.
The main modification is the inclusion of a fourth business category. From now on, entities will be classified based on the number of employed individuals —including partners— into microenterprises, with one to 10 people; small businesses, with 11 to 35; medium-sized enterprises, with 36 to 100; and private companies, when they exceed 100 employed individuals.
The change brings to the legal arena one of the measures announced by the Cuban regime months ago. In June, the Government decided to eliminate the limit of 100 workers for private businesses as part of a package of economic reforms.
The new wording of Decree-Law 88 establishes that these economic units have legal personality and can be state-owned, private, mixed, or owned by political, mass, and social organizations.
It also acknowledges that they have "business autonomy within the framework of current legislation" and are liable for their fiscal, credit, labor, environmental, contractual, health and sanitation, urban planning, safety and protection obligations, as well as for any other obligations arising from the legal system.
Among their obligations are to record all operations in current bank accounts, market their goods and services in Cuban pesos—except in cases provided for by legislation—implement an internal control system, comply with regulations on electronic commerce, provide statistical information, and keep the information in the Commercial Registry up to date.
Regarding their powers, companies will be able to manage and administer their assets, define the products and services they sell, as well as their suppliers and clients, establish their structure and workforce, and set the prices of their goods and services in accordance with the provisions of the Ministry of Finance and Prices.
They will also be able to export and import directly, although for this they will need prior authorization from the Ministry of Foreign Trade and Foreign Investment.
The regulation also allows them to make investments, partner with foreign capital to fulfill their corporate purpose, create establishments without legal personality inside or outside the province where their registered office is located, and access "any lawful source of financing."
Another significant change directly affects Cubans living outside the island. The Decree-Law establishes that Cuban nationals residing both in the national territory and abroad can be partners in private businesses, as well as foreigners with permanent residency in Cuba.
Furthermore, the same individual can be a partner in multiple micro, small, or medium enterprises, as well as in private companies with more than 100 employees.
This possibility had also been hinted at by the Government. In March, it was reported that Cubans living abroad could participate in or own private businesses on the island.
Despite the openings, the regulations maintain control mechanisms over the sector. The text states that these companies are required not to engage in "criminal manifestations or illicit acts, particularly those that threaten State Security."
It also prohibits them from directly or indirectly engaging, either themselves or through third parties, in money laundering, financing of terrorism, or the proliferation of weapons of mass destruction.
The regulations also introduce a change in the approval of these economic actors. Temporarily, the Ministry of Economy and Planning will continue to be responsible for approving and modifying micro, small, and medium-sized enterprises, as well as private companies with more than 100 employees.
However, these functions must be transferred to the municipal Administration councils within 180 days from the entry into force of the Decree-Law.
The original Decree-Law 88, approved in July 2024, repealed Decree-Law 46 from August 2021, which had established the previous legal framework for small and medium-sized enterprises (mipymes) in Cuba.
Subsequently, Decree-Law 133, dated August 19, 2026, introduced modifications that included private companies with more than 100 employees and ordered the updating, review, and alignment of Decree-Laws 88, 89, and 90.
For that reason, the Special Gazette published on September 7 does not imply the approval of a new Decree-Law 88, but rather presents the updated text with accumulated modifications and serves as a reference for the current regulations for these economic actors.
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