Starting a Business · Cuba
Starting a Business - Cuba
Cuba maintains a heavily state-directed economy in which foreign investment is channelled through narrowly defined, government-approved modalities—primarily joint ventures with Cuban state entities or wholly foreign-owned enterprises in designated sectors, both requiring Council of Ministers (or delegated body) approval. Non-Cuban foreigners wishing to participate in the domestic private MIPYME (small/medium enterprise) sector must hold permanent legal residency in Cuba. A March 2026 reform for the first time permits Cubans residing abroad to invest in private domestic businesses, but non-Cuban foreign nationals continue to face a restrictive, bureaucratic environment with no general right to form a company.
Law 118 (2014) authorises three modalities of foreign investment: (1) joint ventures between foreign investors and Cuban state entities (sociedad mercantil mixta), (2) wholly foreign-owned enterprises (empresa de capital totalmente extranjero), and (3) international economic association contracts. All require an enabling resolution from the Council of Ministers or a delegated central-state body.
Under Law 118, foreign capital may only associate with Cuban legal entities (i.e., state enterprises), not with private Cuban natural persons. This structurally bars foreigners from entering a standard private-sector partnership with an individual Cuban.
Since 2021 Cuba allows private micro, small, and medium enterprises (MIPYMEs). Foreigners may become MIPYME partners only if they hold permanent residency in Cuba ("effective residency"). Decree-Law 88/2024 tightened this requirement further; approval since March 2025 has been delegated to local Municipal Administration Councils (CAMs).
Joint-venture applications under Law 118 must receive a government decision within 60 calendar days (45 days in delegated-authority sectors). In practice, negotiations with state counterparts and regulatory reviews substantially lengthen the overall timeline. The government's MINCEX portal ("Invest in Cuba") publishes the official FAQ and project portfolio.
Decree 107/2024 expanded the list of activities barred from the private sector to 125 items, including financial intermediation, vehicle sales, TV/radio broadcasting, medical-equipment manufacturing, and solid-waste collection. This limits the scope available to any investor, foreign or domestic.
In March–May 2026, Cuba for the first time formally permitted Cuban nationals residing abroad (without island residency) to invest in private MIPYME businesses and partner with domestic private economic actors. Decree 150/2026 created a new "Investor and Businessperson" immigration status for this group; non-Cuban foreigners are not covered by this reform.
Machine-assisted translation · verified 5/24/2026 · orientation, not legal advice. English version →