Overview of Opening a Business in Panama

Are you considering starting a business in Panama? Congratulations on taking this exciting entrepreneurial journey! Panama, a vibrant and economically thriving country in Central America, offers numerous opportunities for both local and foreign entrepreneurs. With its strategic location, stable economy, favorable business climate, and attractive tax incentives, Panama has become a popular destination for those seeking to establish their own business.

In this comprehensive guide, we will delve into the intricacies of opening a business in Panama. We will walk you through the necessary steps, highlight the legal and regulatory considerations, discuss financing options, and provide valuable tips for successfully operating your business in this dynamic market.

Benefits of Opening a Business in Panama

Before diving into the nitty-gritty details, let’s first explore why Panama is an attractive destination for business ventures. One of the main advantages of starting a business in Panama is its strategic location as a bridge between North and South America. With the Panama Canal serving as a major international trade route, the country enjoys easy access to global markets, making it an ideal hub for logistics and distribution.

Panama’s strong and stable economy is another appealing factor for entrepreneurs. With a solid GDP growth rate and low inflation, the country offers a favorable business climate conducive to long-term sustainability and profitability. Additionally, Panama has a dollarized economy, which eliminates exchange rate risks and provides stability for businesses operating in the country.

Furthermore, Panama offers a variety of tax incentives and exemptions that can significantly benefit business owners. With its territorial tax system, businesses are only taxed on income generated within Panama, providing potential tax savings for international operations. Additionally, there are numerous tax incentives available for specific industries, such as tourism, agriculture, and technology.

Legal and Regulatory Framework for Businesses in Panama

Understanding the legal and regulatory framework is crucial when starting a business in Panama. The country has a well-established legal system based on civil law, providing a solid foundation for business operations. The Panamanian government has implemented various laws and regulations to facilitate business activities, protect intellectual property rights, and ensure fair competition.

To operate legally in Panama, you will need to select the appropriate business structure and register your business with the relevant authorities. The most common business structures in Panama include sole proprietorship, partnership, and corporation. Each structure has its own advantages and considerations, so it’s important to carefully evaluate your options before making a decision.

Registering your business involves obtaining a unique business identification number known as the Registro Único de Contribuyentes (RUC) from the Panama Tax Authority. Additionally, you will need to register with the Panama Ministry of Commerce and Industries (MICI) and comply with specific industry requirements, such as obtaining permits and licenses.

Tax obligations are an important aspect of running a business in Panama. The Panamanian tax system is based on a territorial principle, meaning businesses are only taxed on income generated within Panama’s borders. It is essential to understand the tax rates, deductions, and reporting requirements to ensure compliance and optimize your tax planning strategies.

Opening a bank account in Panama is also a fundamental step in establishing your business. Panama offers a wide range of reputable banks that cater to both domestic and international businesses. Understanding the requirements, documentation, and banking services available will help you choose the right bank and account type that aligns with your business needs.

Lastly, hiring employees and understanding labor laws in Panama are critical considerations for business owners. Panama has a comprehensive labor code that governs employment relationships, including provisions for minimum wage, working hours, vacation entitlements, and employee benefits. Complying with these regulations and understanding the hiring process will ensure a smooth recruitment process and foster positive employee relations.

Now that we have explored the benefits of opening a business in Panama and provided an overview of the legal and regulatory framework, let’s delve into the steps required to successfully establish your business in this thriving market.

Understanding the Steps to Open a Business in Panama

Starting a business in Panama requires careful planning and a systematic approach. In this section, we will guide you through the essential steps involved in opening a business in Panama, from selecting the right business structure to obtaining necessary permits and licenses.

Researching and Selecting the Right Business Structure

The first step in establishing a business in Panama is to research and select the most suitable business structure for your venture. Panama offers several options, including sole proprietorship, partnership, corporation, and limited liability company (LLC). Each structure has its own advantages, legal requirements, and tax implications, so it’s crucial to evaluate them based on your specific needs and long-term goals.

A sole proprietorship is the simplest and most common form of business ownership, ideal for small-scale operations. It involves a single individual who is solely responsible for all business activities and liabilities. On the other hand, partnerships allow two or more individuals to share ownership, responsibilities, and profits. Partnerships can be general partnerships or limited partnerships, each with its own set of legal implications.

If you’re aiming for a separate legal entity with limited liability, incorporating a corporation or forming an LLC might be the right choice. Corporations provide a higher level of legal protection and are often preferable for larger businesses or those planning to attract outside investors. LLCs, on the other hand, offer flexibility and the advantage of pass-through taxation, making them popular among small and medium-sized businesses.

When selecting a business structure, consider factors such as liability protection, tax implications, ease of administration, and potential for growth. Consulting with a legal professional or business advisor experienced in Panamanian business law can help you navigate the complexities and make an informed decision.

Registering Your Business with the Panamanian Authorities

Once you have determined the appropriate business structure, the next step is to register your business with the relevant authorities in Panama. This ensures that your business is recognized and operates legally within the country.

To begin the registration process, you will need to obtain a unique business identification number known as the Registro Único de Contribuyentes (RUC) from the Panama Tax Authority. This number is essential for all tax-related matters and will be used to identify your business in interactions with government agencies.

Additionally, you will need to register with the Panama Ministry of Commerce and Industries (MICI). This registration process involves filing the necessary paperwork and providing specific details about your business, such as its name, address, purpose, and shareholders or partners.

Depending on the nature of your business, you may also need to obtain permits or licenses from other government entities. For example, if you plan to operate a restaurant, you will need to comply with health and safety regulations and obtain a sanitary permit. Similarly, businesses involved in import or export activities will need to obtain the necessary licenses from the Customs Authority.

Navigating the registration process can be complex, especially if you are not familiar with the local regulations and requirements. Seeking assistance from a lawyer or business consultant who specializes in company registration in Panama can streamline the process and ensure compliance with all legal obligations.

Understanding the Tax Obligations for Businesses in Panama

Taxation is an important aspect of running a business, and understanding the tax obligations in Panama is crucial to avoid any legal issues or penalties. The Panamanian tax system is based on a territorial principle, which means that businesses are only taxed on income generated within Panama’s borders.

Before commencing business operations, you will need to register for tax purposes with the Panama Tax Authority, known as the Dirección General de Ingresos (DGI). The registration process involves providing information about your business, its activities, and projected revenues. This registration will enable you to obtain a taxpayer identification number (RUC) and fulfill your tax obligations.

As a business owner in Panama, you will be subject to various taxes, including income tax, value-added tax (VAT), and social security contributions. The income tax rate for businesses in Panama is generally 25% of net taxable income. However, certain industries may benefit from tax incentives or reduced tax rates, so it’s important to research and understand the specific tax regulations applicable to your business.

In addition to income tax, businesses are also required to collect and remit VAT on eligible goods and services provided to customers. The standard VAT rate in Panama is 7%, but certain items may be exempt or subject to a reduced rate. It is essential to keep accurate records of your sales and purchases to ensure compliance with VAT regulations.

To ensure proper tax planning and compliance, it is advisable to engage the services of a qualified accountant or tax advisor who is familiar with the Panamanian tax system. They can assist you with the preparation of tax returns, advise on deductions and credits, and help you optimize your tax position within the legal framework.

Opening a Bank Account for Your Business

Having a bank account for your business is essential for managing financial transactions, receiving payments from customers, and paying suppliers and employees. Panama offers a robust and well-regulated banking sector with various local and international banks to choose from.

Selecting the right bank and account type is crucial, as it can impact your business’s financial operations and facilitate ease of doing business. Consider factors such as banking fees, services offered, online banking capabilities, and customer support when evaluating different banking options.

To open a business bank account in Panama, you will need to provide specific documentation, including your RUC, company registration documents, and valid identification for the authorized signatories. Some banks may also require additional information, such as a business plan, financial projections, or a reference from an existing client.

It is important to note that banks in Panama have strict compliance measures in place to prevent money laundering and other illicit activities. As part of the account opening process, you may be required to provide the source of funds for your business and provide relevant supporting documentation.

Working closely with a bank representative or business advisor who specializes in banking services in Panama can help simplify the account opening process and ensure that you meet all the necessary requirements.

Hiring Employees and Understanding Labor Laws in Panama

If your business requires additional staff, it’s important to familiarize yourself with the labor laws and regulations in Panama. The Panamanian labor code governs employment relationships and sets out the rights and obligations of employers and employees.

When hiring employees, you will need to comply with specific requirements, including obtaining the necessary work permits and visas for foreign employees. Panama offers various visa categories for different purposes, including work visas for employees, investment visas for business owners, and dependent visas for family members.

As an employer, you will need to provide employees with written employment contracts that outline the terms and conditions of their employment, including working hours, compensation, benefits, and termination provisions. It is essential to ensure that your employment contracts comply with the labor laws and regulations to avoid any legal disputes in the future.

Panamanian labor laws also prescribe minimum wage levels, working hour limits, overtime requirements, and mandatory benefits such as social security contributions, health insurance, and retirement plans. Familiarizing yourself with these regulations will help you establish fair and compliant employment practices within your organization.

To ensure compliance with labor laws and to manage payroll and employee benefits effectively, many businesses in Panama opt to engage the services of a professional employer organization (PEO) or a local payroll provider. These entities specialize in payroll management, tax withholding, and employee benefits administration, allowing you to focus on your core business functions while ensuring compliance with labor regulations.

By understanding the steps involved in opening a business in Panama, you are well on your way to establishing a strong foundation for your entrepreneurial journey. In the next section, we will explore the legal and regulatory considerations that you need to keep in mind as a business owner in Panama.

Legal and Regulatory Considerations for Opening a Business in Panama

When starting a business in Panama, it is crucial to understand the legal and regulatory considerations that govern business operations in the country. Panama has a well-established legal system that provides a solid foundation for conducting business activities. In this section, we will explore key legal and regulatory aspects that you need to consider as a business owner in Panama.

Intellectual Property Rights and Trademarks

Protecting your intellectual property is essential to safeguard your business’s unique ideas, inventions, and branding. In Panama, intellectual property rights are protected under the Industrial Property Law and Copyright Law. It is important to register your trademarks, patents, and copyrights with the Panamanian Intellectual Property Office (DIGERPI) to secure legal protection.

Registering a trademark in Panama gives you exclusive rights to use the mark and prevents others from using a similar mark that could cause confusion among consumers. It is advisable to conduct a thorough trademark search before applying for registration to ensure that your chosen mark is not already in use. Once registered, trademarks are valid for ten years with the option for renewal.

In addition to trademarks, patents are crucial for protecting inventions and new technologies. By registering a patent with the National Secretariat of Science, Technology, and Innovation (SENACYT), you gain exclusive rights to your invention for a specified period. It is recommended to consult with a patent attorney to navigate the patent registration process and ensure your invention meets the necessary requirements.

Copyright protection in Panama extends to literary, artistic, and scientific works. Registering your copyright with the National Directorate of Copyright (DINDA) provides legal proof of ownership and protection against unauthorized use or reproduction. While copyright protection exists automatically upon creation, registration is highly recommended to strengthen your legal position in case of infringement.

Immigration and Residency Requirements for Business Owners

As a business owner in Panama, it is important to understand the immigration and residency requirements to ensure compliance with the law. Panama offers various visa options for foreign entrepreneurs and investors interested in starting a business in the country.

The most common visa category for business owners is the Business Investor Visa (Visa de Inversionista), which requires a minimum investment of $160,000 in a Panamanian business. This visa allows you to work and reside in Panama as long as you maintain your investment. Another option is the Friendly Nations Visa, which is available to citizens of selected countries who establish a Panamanian business or obtain a job offer from a Panamanian company.

To apply for a visa, you will need to provide supporting documentation such as a business plan, financial statements, criminal background checks, and a health certificate. It is advisable to engage the services of an immigration attorney to assist you with the visa application process and ensure all requirements are met.

Panama also offers various residency options for business owners, including the Self-Economic Solvency Visa and the Pensionado Visa. These visas grant temporary or permanent residency status to individuals who meet specific financial requirements or have a steady retirement income.

Understanding the immigration and residency requirements is crucial for business owners planning to relocate to Panama. It is recommended to consult with an immigration attorney who specializes in Panamanian immigration law to ensure a smooth transition and compliance with all legal obligations.

Understanding Import and Export Regulations

If your business involves import or export activities, it is important to familiarize yourself with the customs procedures and regulations in Panama. The Customs Authority (Autoridad Nacional de Aduanas) oversees the import and export processes and ensures compliance with international trade regulations.

Importing goods into Panama requires adherence to customs regulations, including the submission of proper documentation and payment of applicable duties and taxes. It is essential to classify your goods correctly and provide accurate and complete information on the customs declaration to avoid delays and penalties.

Certain goods may require special permits or licenses from specific government agencies before importation. For example, importing pharmaceuticals or chemicals may require approval from the Ministry of Health, while importing food products requires compliance with the regulations of the Ministry of Agricultural Development.

Exporting goods from Panama also requires compliance with customs regulations and documentation requirements. It is important to ensure that your products meet the quality standards and regulations of the destination country to avoid any issues at customs.

Engaging the services of a customs broker or freight forwarder can simplify the import and export processes and ensure compliance with all customs requirements. These professionals have in-depth knowledge of the customs regulations and can assist you with documentation, customs clearance, and logistics.

Environmental Regulations and Sustainability Practices

As businesses worldwide are increasingly embracing sustainability practices, understanding environmental regulations and adopting eco-friendly initiatives is crucial for business owners in Panama. The country has implemented various laws and regulations to protect the environment and promote sustainable economic development.

Compliance with environmental regulations is essential for businesses involved in activities that may have an impact on the environment, such as manufacturing, construction, or agriculture. Panama has specific regulations regarding waste disposal, emissions control, water usage, and natural resource conservation.

To ensure compliance with environmental regulations, businesses are required to obtain permits or licenses from relevant government agencies. For instance, businesses involved in activities that may generate hazardous waste must obtain a Hazardous Waste Handling Permit from the Ministry of Health.

Adopting sustainable practices not only helps protect the environment but also enhances your business’s reputation and attracts environmentally conscious consumers. Consider implementing energy-efficient measures, waste reduction and recycling programs, and sustainable sourcing practices to minimize your business’s environmental footprint.

Staying informed about changes in environmental regulations and industry best practices is essential for business owners in Panama. Engaging with environmental consultants or joining industry associations can provide valuable insights and guidance on sustainability initiatives.

Understanding the legal and regulatory considerations for opening a business in Panama is crucial for ensuring compliance and long-term success. In the next section, we will explore financing and funding options available to entrepreneurs in Panama.

Financing and Funding Options for Starting a Business in Panama

Starting a business in Panama often requires financial resources to cover initial investments, operational expenses, and growth plans. In this section, we will explore various financing and funding options available to entrepreneurs in Panama, ranging from self-financing to accessing venture capital and government grants.

Overview of Financing Options for Business Owners

Self-Financing and Personal Savings: Many entrepreneurs choose to finance their business using personal savings or by leveraging their own assets. Self-financing offers flexibility and allows you to maintain full control of your business. However, it may require a significant personal financial commitment, and you should carefully assess the risks involved.
Loans and Credit Options: Traditional banking institutions in Panama offer various loan and credit options for business owners. These may include business loans, lines of credit, or equipment financing. It is advisable to shop around and compare interest rates, terms, and repayment options to find the most suitable financing solution for your business.
Government Grants and Incentives: The Panamanian government and various organizations provide grants and incentives to support entrepreneurship and specific industries. These grants can provide financial assistance, mentorship, and training programs. Research government programs and eligibility criteria to determine if your business qualifies for any grants or incentives.

Venture Capital and Angel Investors in Panama

Panama’s startup ecosystem has been growing rapidly, attracting venture capital firms and angel investors seeking investment opportunities. Venture capital firms provide capital in exchange for equity in high-growth potential startups. They often bring expertise, mentorship, and networking opportunities to help businesses scale.

Angel investors, on the other hand, are typically high-net-worth individuals who invest their own funds into early-stage businesses. They often provide not only financial support but also guidance and connections. Engaging with angel investor networks or attending startup events can help you connect with potential angel investors.

To attract venture capital or angel investors, it is important to develop a compelling business plan, demonstrate market potential, and present a solid growth strategy. Be prepared to negotiate terms and understand that investment deals may involve giving up a portion of equity in your business.

Accessing Business Grants and Incentives

The Panamanian government offers various grants and incentives to promote economic growth, innovation, and job creation. These programs aim to support entrepreneurs and businesses in specific sectors, such as technology, agriculture, tourism, and renewable energy.

To access these grants and incentives, you will need to research the available programs, understand their eligibility criteria, and prepare a comprehensive application. Some grants may require a detailed business plan, financial projections, and evidence of market potential. Engaging with business support organizations or consulting with a business advisor can assist you in navigating the application process and increasing your chances of securing funding.

Additionally, international organizations such as the Inter-American Development Bank (IDB) and the World Bank provide funding and technical assistance to businesses in Panama. These institutions often focus on projects related to infrastructure development, environmental sustainability, and social impact. Research their funding programs and explore the potential for partnership or collaboration.

Tips for Securing Funding

Securing funding for your business requires preparation, research, and a compelling pitch. Here are some tips to increase your chances of securing financing:

Develop a solid business plan: A comprehensive business plan that outlines your business model, target market, competition, and financial projections is essential when seeking funding. It demonstrates your understanding of the market and your ability to execute your business strategy.
Research funding options: Explore various funding sources, including banks, venture capital firms, angel investors, and government grants. Understand their requirements, terms, and application processes to maximize your chances of securing funding.
Build relationships: Networking is crucial in the world of business financing. Attend industry events, join business associations, and engage with potential investors or lenders. Building relationships and seeking advice from experienced entrepreneurs can open doors to funding opportunities.
Present a compelling pitch: When pitching your business to potential investors or lenders, clearly articulate your value proposition, market potential, and growth strategy. Highlight your unique selling points and demonstrate a deep understanding of your industry.
Be prepared for due diligence: Investors and lenders will conduct due diligence to assess the viability of your business. Be prepared to provide financial statements, legal documents, and other relevant information to support your funding application.

Remember, securing funding may take time and perseverance. Be open to feedback, continuously refine your business plan and pitch, and stay resilient in the face of challenges. With the right preparation and a compelling business proposition, you can increase your chances of obtaining the necessary financing to launch and grow your business.

In the next section, we will explore the importance of developing a comprehensive business plan and conducting thorough market research before starting a business in Panama.

Developing a Business Plan and Market Research

Before diving into the operational aspects of starting a business in Panama, it is crucial to develop a comprehensive business plan and conduct thorough market research. These foundational steps will provide you with valuable insights into your target market, competitors, and potential customers. In this section, we will explore the importance of these activities and provide guidance on how to approach them effectively.

Importance of a Business Plan

A business plan serves as a roadmap for your entrepreneurial journey. It outlines your business goals, strategies, financial projections, and operational details. Developing a well-thought-out business plan is essential for several reasons:

Clarity and Direction: A business plan helps you articulate your vision and mission, defining your long-term objectives and strategies. It provides clarity on the steps you need to take to achieve your goals.
Investor Attraction: If you plan to seek external funding, a well-crafted business plan is crucial. Investors want to see a clear understanding of your market, competitive advantage, and growth potential. A compelling business plan can increase your chances of securing financing.
Operational Guidance: Your business plan outlines your organizational structure, product or service offerings, and marketing strategies. It serves as a reference document to guide your day-to-day operations and decision-making.
Risk Assessment and Mitigation: By conducting a thorough analysis of your business environment, market dynamics, and potential risks, you can identify and address challenges proactively. A business plan helps you assess the feasibility of your business concept and develop contingency plans.

When developing your business plan, consider including the following key components:

Executive Summary: An overview of your business, highlighting its unique value proposition and key milestones.
Market Analysis: A detailed assessment of your target market, including demographics, trends, and customer behavior.
Competitive Analysis: An evaluation of your competitors, their strengths and weaknesses, and how your business differentiates itself.
Marketing and Sales Strategies: An outline of your marketing and sales approach, including pricing, distribution channels, and promotional activities.
Operational Plan: Details on your business operations, including production processes, supply chain management, and quality control.
Financial Projections: Forecasts of your revenue, expenses, and cash flow, demonstrating the financial viability of your business.

Remember, a business plan is a dynamic document that should be regularly reviewed and updated as your business evolves. It is a valuable tool for strategic decision-making and communicating your vision to stakeholders.

Conducting Market Research

Market research is a critical component of starting a business in Panama. It involves gathering and analyzing information about your target market, potential customers, and industry trends. By conducting thorough market research, you can make informed decisions, identify opportunities, and develop effective marketing strategies.

Here are key steps to conducting market research for your business:

Identify Your Target Market: Define your ideal customer profile by considering factors such as demographics, psychographics, and buying behavior. Understand their needs, preferences, and pain points.
Analyze Industry Trends: Stay updated on industry trends, technological advancements, and regulatory changes that may impact your business. This knowledge will help you anticipate market shifts and adapt your strategies accordingly.
Assess Competitor Landscape: Analyze your competitors’ products, pricing, marketing strategies, and customer feedback. Identify gaps in the market that your business can fill or areas where you can differentiate yourself.
Gather Customer Feedback: Conduct surveys, interviews, or focus groups to gather direct feedback from potential customers. This qualitative data can provide valuable insights into their preferences, expectations, and willingness to pay.
Analyze Secondary Data: Utilize existing market research reports, industry publications, and government statistics to gain a broader understanding of market dynamics, consumer behavior, and economic trends.
Test Your Business Concept: Consider conducting a pilot study or launching a minimum viable product (MVP) to test the market’s response to your product or service. Collect feedback from early adopters and iterate based on their input.

By investing time and effort into market research, you can validate your business idea, identify your target market’s needs, and develop effective marketing strategies. This knowledge will help you position your business competitively and attract customers.

Remember, market research is an ongoing process. Continuously monitor your target market, stay updated on industry trends, and gather customer feedback to adapt and refine your strategies as needed.

In the next section, we will explore effective marketing and promotional strategies to help you reach your target audience and grow your business in Panama.

Marketing and Promoting Your Business in Panama

Once you have developed a solid business plan and conducted thorough market research, it’s time to focus on marketing and promoting your business in Panama. Effective marketing strategies are crucial for attracting customers, establishing brand awareness, and driving business growth. In this section, we will explore key considerations and effective marketing techniques to help you reach your target audience and make a lasting impression.

Understanding the Local Market and Target Audience

Before diving into marketing tactics, it’s important to have a deep understanding of the local market and your target audience in Panama. Consider the following factors:

Cultural Nuances: Panama has a unique cultural landscape with diverse influences from Spanish, Indigenous, Afro-Caribbean, and other cultures. It’s essential to understand local customs, traditions, and communication styles to effectively connect with your target audience.
Language Considerations: While Spanish is the official language in Panama, English is widely spoken, especially in urban areas and business settings. Depending on your target market, you may need to consider bilingual marketing materials or translation services to effectively communicate your message.
Consumer Behavior: Analyze the buying behavior, preferences, and habits of your target audience in Panama. Understand their pain points, aspirations, and motivations to tailor your marketing messages and offerings accordingly.
Competitive Landscape: Assess your competitors’ marketing strategies and positioning in the market. Identify gaps or areas where you can differentiate your business to attract customers.

By understanding the local market and your target audience, you can customize your marketing efforts to resonate with potential customers and stand out from your competitors.

Effective Marketing Strategies and Channels

Online Presence: Establishing a strong online presence is crucial in today’s digital age. Create a professional website that showcases your products or services, provides relevant information, and incorporates search engine optimization (SEO) techniques to improve visibility. Leverage social media platforms such as Facebook, Instagram, and LinkedIn to engage with your target audience, share valuable content, and build brand awareness.
Content Marketing: Develop high-quality content such as blog posts, articles, videos, or podcasts that educate, entertain, or solve problems for your target audience. Share this content through your website, social media channels, or email newsletters to establish yourself as an industry expert and build trust with potential customers.
Influencer Marketing: Collaborate with influential individuals or organizations in Panama who have a strong following and align with your brand values. Engaging influencers can help expand your reach, increase brand awareness, and generate buzz around your products or services.
Local Partnerships: Build relationships with local businesses or organizations that complement your offerings. Consider cross-promotions, joint events, or strategic alliances to tap into their existing customer base and gain exposure.
Traditional Advertising: Traditional advertising channels, such as television, radio, and print media, still play a role in Panama’s marketing landscape. Assess the relevance and effectiveness of these channels for your target audience and consider incorporating them into your marketing mix if appropriate.
Events and Sponsorships: Participate in industry trade shows, conferences, or community events to showcase your products or services and network with potential customers and partners. Sponsorship opportunities, such as supporting local sports teams or cultural events, can also help increase brand visibility and community engagement.

Remember, effective marketing requires consistency, creativity, and a deep understanding of your target audience. Continuously monitor and analyze the results of your marketing efforts, adjusting your strategies as needed to optimize your return on investment.

In the next section, we will explore the importance of networking and building relationships with the local business community in Panama.