LATIN AMERICA & THE CARIBBEAN: A Legal Guide for Business Investment and Expansion - Panama

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1. What role does the government of Panama play in approving and regulating foreign direct investment?

The government of Panama plays an important role in attracting foreign direct investment to the country. In addition to being responsible for approving commercial licenses (avisos de operación), generally required for operating a business in Panama, as well as other regulatory authorizations that may apply, the government also promotes special regimes for certain economic activities. The government is also responsible for enforcing rules under these regimes, granting any specific authorizations under these, enacting supplementary rules, and providing agency guidance or interpretation when needed.

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