The power of corporate compliance in Mexico: Key aspects and best practices


published on 13 June 2023 | reading time approx. 3 minutes


Regulatory compliance has become a growing concern for companies worldwide, and Mexico is no exception. Corporate compliance is a crucial aspect in the operation of any organization as it ensures that companies and their employees adhere to the applicable laws, regulations, and standards in their daily activities. Establishing an effective compliance program not only ensures such adherence but also strengthens the company's reputation and sustainability. Throughout this article, key aspects and best practices to consider when designing and implementing a compliance program in the Mexican business context will be discussed.





Especially for companies composed of foreign partners or shareholders, compliance should be carried out by a competent team that knows, identifies, and classifies the operational and legal risks they face, with the objective of establishing prevention, management, control, and response mechanisms. These objectives can only be achieved through the company's compliance, which is essential for achieving stability.
Some of the obligations that companies incorporated in Mexico must comply with are:
  • Registration of the company with the Tax Administration Authority;
  • Monthly and annual declaration of the company's income to tax authorities;
  • Preparation of corporate books to record every transaction or change within the company;
  • Convening and holding meetings of partners or shareholders;
  • Preparation of the company's financial statements;
  • Processing and renewal of operating licenses, depending on the company's activities;
  • Registration and renewal of the company's trademark;
  • Compliance with the Federal Law on the Protection of Personal Data Held by Private Parties when hiring employees or entering into contracts;
  • Reporting and submitting quarterly and annual reports to the National Registry of Foreign Investment;
  • Compliance with the formats and requirements stipulated by the Anti-Money Laundering Law for the company's transactions.
By having a compliance program, Mexican companies must fulfill their corporate obligations on a monthly, quarterly, or annual basis, requiring them to stay constantly updated to continue operating without limitations and without being subject to sanctions under Mexican laws. Furthermore, compliance is not only limited to the needs of the corporate structure but also deals with labor compliance, as the Federal Labor Law that regulates it has undergone significant reforms in Mexico that include new obligations for companies and is rigorously supervised by the authorities.
Non-compliance with Mexican laws and regulations poses grave risks for companies, including legal consequences, financial losses, reputational damage, loss of business opportunities, corruption risks, and harm to employees and stakeholders. Failure to adhere to the applicable laws can result in litigation, penalties, and criminal charges, leading to significant financial strain and damage to the company's reputation. Moreover, non-compliant companies may face restrictions on operations, miss out on business opportunities, and expose themselves to corruption risks.
This means that having a full compliance program will prevent Mexican companies from facing detrimental consequences that can jeopardize their operations and sustainability. By prioritizing compliance, Mexican companies can establish a solid foundation for long-term success.
Additionally, the implementation of a corporate compliance program in Mexico is essential to strengthen corporate reputation and sustainability. Therefore, by following the key aspects and best practices presented in this article, companies in Mexico will be able to establish a solid framework that promotes a culture of ethical compliance and minimizes the risks associated with non-compliance.


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Dr. Dirk Oetterich, LL.M.


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