The transformation of state-owned enterprises into joint-stock companies, the removal of caps on the private sector, and the opening to diaspora investors mark a turning point in the socialist model.

The reforms allow for the conversion of state-owned enterprises into commercial companies—structured as either joint-stock corporations or limited liability companies—though the State would retain a majority stake only in sectors deemed strategic for national development.

This process is complemented by the establishment of procedures for bankruptcy, liquidation, and corporate restructuring—mechanisms previously absent from the Cuban legal framework—thereby introducing, for the first time, exit strategies for unviable entities.

Furthermore, the reforms authorize the creation of private companies without size limits and permit the ownership of multiple businesses; they also open the door for legal entities and individuals—both domestic and foreign—to acquire shares in state-owned enterprises and participate in the purchase of public assets.

According to the Ministry of Foreign Trade, Cubans who do not reside permanently on the island will be able to partner with Cuban private companies under the Foreign Investment Law, and become partners or owners of private companies, provided they obtain investor and business immigration status.

They will also be able to participate in the financial system—including opening foreign currency accounts in Cuban banks—and create investment and cooperation funds to develop projects within the national territory.

Cuban Deputy Prime Minister Oscar Perez-Oliva Fraga noted that this opening is not limited to small businesses; Cubans living abroad will also be able to get involved in larger-scale projects, including infrastructure-related ventures.

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