Operating a Business

flag Cuba Cuba: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Sociedad con Responsabilidad Limitada
Number of partners: Minimum 2
Capital (max/min): No minimum capital amount required
Shareholders and liability: Limited to the shares
Sociedad Anónima (SA)
Number of partners: Minimum 2
Capital (max/min): No minimum capital amount required
Shareholders and liability: Unlimited for managing partners, limited to their contributions for limited partners
Joint Venture Company
Number of partners: Minimum 1 national and 1 foreigner
Capital (max/min): No minimum capital amount required
Shareholders and liability: Limited to the shares
International Economic Association Contract (IEAC)
Number of partners: Minimum 2 nationals and 1 foreigner
Capital (max/min): No minimum capital amount required
Shareholders and liability: Limited to the shares
Public Limited Company
Number of partners: Minimum 2 partners
Capital (max/min): No minimum capital amount required
Shareholders and liability: Liability is limited to their investment
The Competent Organisation
The Ministry of Foreign Investment and Economic Co-operation, through the Evaluation and Project Investment management leadership (Direccion de Evaluacion y Gestion de Proyectos de Inversion, Investment Promotion Center) is in charge of negotiations with foreign partners.
 
Business Setup Procedures
Trade Register, in Spanish.

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The Active Population in Figures

201820192020
Labour Force 5,103,4495,092,6034,790,239

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 64.12%64.26%64.29%
Men activity rate 77.68%77.83%77.96%
Women activity rate 50.51%50.62%50.54%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
8 hours per day and 44 hours per week
Retirement Age
60 years for men and 55 years for women who have 25 years of service.
55 years for men and 50 years for women if the last 12 years or 75% involved working in a physically taxing environment
Working Contracts
Employment contracts are permanent, temporary or task specific.

The 1995 law on foreign investments requires that investors use the State employment agency to hire workers.

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Cost of Labour

Minimum Wage
CUP 225 per month (source: ILO, 2011).
Average Wage
Average monthly gross earnings in Cuba is CUP 440 (USD 19).
Social Contributions
Social Security Contributions Paid By Employers: Employer's contribution: 14%
Social Security Contributions Paid By Employees: Employee's contribution: 0%

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Social Partners

Social Dialogue and Involvement of Social Partners
The only legal union in Cuba is the Main Cuban Workers' Union (CTC) which is heavily dependent on the government.  The workers are obliged to observer their colleagues and to report all "dissident" activity.  The independent union activists are regularly subjected to detentions, harassment and threatened with trial.  Despite everything, the existing organisations do not have the capacity to defend the workers in an efficient way. As they are not recognized, they cannot undertake collective negotiations or call for strikes.
Unions
The Main Cuban Workers' Union (in Spanish)
Unionisation Rate
96% of Cuban employees are affiliated to the Main Cuban Workers' Union (according to the CTC' own figures)
Labour Regulation Bodies
Ministry of Labor and Social Security
Cuba and Mexico International Labor Organization (Spanish only)

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Latest Update: July 2022