Cuba will require residency for owners of private companys

Cuba will require residency for owners of private companys

HAVANA, Aug. 20 (AFP) Cuba will require permanent residence on the island from anyone who wants to be the owner or partner of a private small or medium-sized company (SME),

according to a new regulation published in the Official Gazette.

After 52 years without national private companies, the Cuban government approved at the beginning of the month the law that authorizes what on the island is called MSMEs (micro, small and medium-sized enterprises), a measure that advances towards economic reforms in the country.

According to the new regulation, private companies will be made up of “natural persons, permanent residents in Cuba, over 18 years of age,” a requirement to be taken into account by Cuban emigrants or foreigners interested in investing on the island.

While the state ones will be made up of “legal persons.” The MSMEs may be privately owned, state-owned or mixed, and the micro will occupy between one and 10 people, the small ones from 11 to 35 people and the medium ones from 36 to 100.

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But they will be able to “define the products and services to be marketed, as well as their suppliers, clients, destinations and market insertion.” They may also set the income of their workers, respecting the minimum wages established by law and may “make the investments that are required for their development.”

In a concise way, the decree ensures that MSMEs “have access to the financing funds established for them”, something that worried economists who raised the need for state development aid. Another 23 regulations regulate other aspects of these companies, as well as the formation of non-agricultural cooperatives and self-employment (private, individual).

Small private businesses disappeared in Cuba in 1968, when they were intervened by the State in the so-called “Revolutionary Offensive”, led by Fidel Castro, which led the island within the Soviet communist model.

But the growth of self-employment, legalized in the 1990s, gave rise to small businesses that operated without the regulatory legal framework that is now adopted, after several years of waiting.