MEXICO: An Introduction to General Business Law: Guadalajara

Background

Guadalajara, currently Mexico’s third largest metropolitan area by population and nicknamed Mexico’s Silicon Valley, is one of Latin America’s most dynamic business hubs. Strategically located in the centre of Jalisco, in western Mexico, Guadalajara serves as a natural crossroads between the Pacific ports, the north-west and the centre of the country. Its prime location, highly skilled workforce (several of the country’s top universities are located in the area), well-developed business and legal environment, and transport infrastructure make it an excellent destination for investors, both domestic and foreign. The city has a robust industrial base with a strong technology sector and a significant number of businesses in software development, fintech, logistics and advanced manufacturing. Guadalajara is also an important centre for the distribution of agricultural products and has a wide array of professional services. Companies interested in relocating to or starting operations in Guadalajara will find a large selection of leisure activities, including state-of-the-art sports and arts facilities, soccer and baseball teams competing in top leagues, and regular visits from international music artists and shows.

Economic and Business Environment

Guadalajara has experienced sustained growth at a large pace in recent years. According to data from Mexico’s Secretary of Economy, international sales in 2024 amounted to USD39.2 billion, representing an increase of 17.7% from the level in 2023, and since 2020 a compound annual growth rate of 13.17% has been achieved.

Much of this growth has occurred in the manufacturing and technology sectors due to various factors (including government incentives and programmes), as well as investments in transportation infrastructure and industrial parks. The recent increase in nearshoring strategies by American companies has particularly benefited Guadalajara. The city has successfully taken advantage of its location near the Pacific Coast and its reliable transport routes to the United States, confirming its position as a bridge between Asian suppliers and US consumers.

Other important sectors are agriculture and professional services. The region’s main agricultural products are berries, corn and agave. The professional services industry has grown in importance, as a result of the constant need for specialised tax and legal services, such as cross-border tax planning, double-taxation treaty analysis, corporate restructuring, mergers and acquisitions (M&A), joint ventures, regulatory alignment, and cross-jurisdictional co-ordination between Mexico, the USA, Europe and Asia.

Opportunities and Challenges Ahead

If Guadalajara is to maintain its recent level of growth, it must adequately embrace the opportunities and challenges it faces. Key opportunities will surely involve:

• embracing nearshoring activities;
• ensuring that investment in transport infrastructure keeps up with growth;
• partnering with universities to maintain the availability of high-skilled labour; and
• maintaining a business-friendly atmosphere that allows professional services companies to continue thriving and catering to foreign investors.

Both government and private companies have been actively working towards ensuring that Guadalajara can continue growing. To name just a few recent efforts:

• the state government has continued to invest in industrial parks;
• Grupo Aeroportuario del Pacífico (the operator of Guadalajara’s airport) has invested heavily in its renovation;
• highways connecting the city are being widened; and
• new universities and campuses are being set up.

Some of the challenges faced are the same as in most of the country – mainly heavier regulation, increased bureaucracy, organised crime and corruption. It is worth noting that Guadalajara in general faces low levels of criminality compared to other regions of Mexico. In terms of corruption, Jalisco has taken a unique approach in developing a “pro-integrity” programme.

Anti-Corruption Initiative: Pro-Integrity Certification

In 2022, the State Comptroller’s Office of Jalisco, the government body responsible for overseeing public spending, launched the Pro-Integrity programme. This initiative allows private companies in the state to obtain official certification as Pro-Integrity businesses – recognised for their social responsibility and commitment to preventing and combating corruption within their own operations.

To apply, companies must implement a formal anti-corruption compliance programme. The aim is to prevent practices that undermine public trust and institutional effectiveness, including:

• bribery;
• embezzlement;
• diversion of public funds;
• misuse of information;
• abuse of authority;
• exploiting conflicts of interest;
• unlawful contracting;
• illicit enrichment;
• sham legal acts;
• influence peddling;
• concealment of corruption;
• disobedience of legal orders;
• nepotism; and
• obstruction of justice.

A qualifying compliance programme must meet practical standards commonly accepted in corporate compliance. Core elements include:

• an organisational chart;
• a risk identification and assessment process; and
• appointment of a compliance officer responsible for programme oversight.

These measures must be reinforced by a formal internal code of conduct, defining acceptable employee behaviour and setting clear rules to prevent corruption in the company’s daily operations.

In recent years, compliance has become an essential pillar of corporate law in Mexico. Corruption often involves private actors seeking undue advantages, frequently in collusion with public administration. Proper internal controls in both sectors are critical to reduce these risks.

Anti-corruption compliance now plays a dual role: it safeguards corporate integrity and also helps protect human dignity. By addressing legal risks early, companies can avoid severe reputational harm and potentially significant financial losses arising from human rights violations or unlawful practices.

For businesses in Jalisco, adopting compliance measures and pursuing Pro-Integrity certification represents more than regulatory alignment – it is a social commitment. It ensures that operations and employee conduct are free from corrupt practices, thereby contributing to a healthier, fairer business environment.

The broader impact is economic as well as ethical. By fostering transparent competition without the distortion of bribes, favours or influence peddling, the programme supports a level playing field. This, in turn, strengthens Jalisco’s institutional credibility, enhances investor confidence, and promotes sustainable economic growth.

The Pro-Integrity programme positions compliance not merely as a legal requirement but as a strategic advantage – one that can define a company’s reputation and resilience in an increasingly regulated and socially conscious market.

Since its inception in 2022, increasingly more companies have signed up for the programme, which adds another layer of confidence to businesses that can display its badge.

Conclusion

Guadalajara is without doubt one of the most important places to do business in Mexico, and its strategic importance has grown in the past few years. Its stance and Mexican’s Silicon Valley has allowed it to attract investment from foreign companies, and it continues to grow in importance, both in terms of manufacturing and software development.

For companies willing to invest in Mexico, Guadalajara presents an interesting opportunity, with its strategic location, logistics routes, availability of labour and – perhaps most importantly – the presence of professional service firms with vast experience in cross-border transactions and local expertise.