On Tuesday, March 3, the Official Gazette of the Republic published Decree-Law 114/2025: “On the Association Between State and Non-State Business Entities”, approved by the Council of State on December 10.
Its aim is to stimulate productive linkages, expand business autonomy, and foster cooperation between sectors with potential for collaboration in key areas of the national economy.
What benefits does the regulation bring?
Decree-Law 114/2025 introduces, for the first time in Cuban legislation, the figure of the mixed Limited Liability Company and enables four forms of association:
- Creation of joint ventures.
- Acquisition of shares in private companies.
- Mergers by absorption.
- Economic association contracts.
The law seeks to strengthen business autonomy, encourage investment, and modernize the legal framework of the economy, while maintaining state control in strategic sectors such as health, education, and defense.
It also establishes greater flexibility for state enterprises, new opportunities for cooperation with MSMEs and cooperatives, promotes efficiency and productive innovation, and consolidates a clearer and safer legal environment for economic partnerships.
Decree-Law 114/2025 not only fills a gap in economic regulation but also tests the capacity of Cuban enterprises to turn the letter of the law into tangible results. The true scope of this provision will depend on how associations are implemented in practice and whether they translate into greater productivity, innovation, and social benefits. In that arena, the effectiveness of a law aspiring to be a key piece in updating the economic model will be measured.
