Cuba opens door to more private business, but red tape looms

HAVANA — Opening a small business is a bureaucratic headache in many parts of the world. Now, after five years of waiting, a new legal system takes effect on Sept. 20 that could greatly expand the scope of private businesses, and give them greater legal certainty in efforts to help an economy in crisis. The company has made at least 35 films since its opening in 2017, short, long and international co-productions, all under the label of “artistic creation collective” but without a legal status. Some businesses ended up having more than 50 employees despite the fact that they were officially “self-employed.” In 2019, before the pandemic and the effects of the US sanctions that suffocated the economy, there were about 600,000 ‘’self-employed’’ workers, most of them linked to the tourism market. The new regulations establish that SMEs - a mandatory status for companies with more than three workers - will be established as ‘’limited liability’’ companies that must be approved by the Ministry of the Economy.