Myanmar’s Private Security Services Law, enacted on February 18, 2025, together with its implementing Directive on Applications for a Private Security Services License or Permit issued on June 18, 2025, establishes the country’s first comprehensive regulatory framework for both commercial private security service providers and companies that employ in-house security personnel. The framework applies to both Myanmar and foreign entities. For foreign investors and multinational operators, the new regime introduces strict licensing requirements, local content rules, and various approvals that must be carefully considered as part of business planning and compliance processes.
Regulatory Authority and Structure
The governing authority under the Private Security Services Law is the Private Security Services Central Supervisory Committee, formed with the minister of the Ministry of Home Affairs (MOHA) as chairperson, the chief of the Myanmar Police Force as vice-chairperson, and members from other high-ranking officials from relevant ministries, such as Transport and Communications, Defense, Planning and Finance, Investment and Foreign Economic Relations, Legal Affairs, Immigration and Population, Labor, and Commerce.
This Central Committee is the highest regulatory authority and has the power to adopt policies, approve or reject applications for licenses and permits, and decide appeals against administrative actions taken by Supervisory Committees, which operate under the Central Committee at the state and regional level. They are responsible for processing applications, verifying compliance with statutory requirements, submitting applications to the Central Committee with remarks, and issuing licenses and permits once approved. Supervisory Committees also monitor compliance by license or permit holders and impose administrative penalties for noncompliance, while the Central Committee exercises final decision-making authority.
License Requirements for Security Service Providers
To apply for a private security services license, companies must be registered under the Myanmar Companies Law. Foreign companies may also operate a private security services business in Myanmar, subject to compliance with applicable legal and regulatory requirements.
Foreign companies must maintain a minimum fixed deposit equivalent to MMK 100 million (approximately USD 47,619 at the Central Bank of Myanmar’s official exchange rate of MMK 2,100 per USD 1) in foreign currency with Myanma Economic Bank and demonstrate that their operations do not adversely affect state security or the rule of law. Licenses are valid for three years and must be renewed at least three months before expiry.
Foreign-owned license applicants must also disclose:
- The number of Myanmar and foreign security personnel
- Qualifications of foreign personnel
Foreign companies must also comply with the rules regarding criteria for both Myanmar and foreign security staff.
Permit Requirements for In-House Security
While licenses are required for private providers of security services, businesses that employ their own in-house security teams of more than 10 personnel must instead get separate permits for doing so. Businesses operating factories, hotels, retail stores, logistics operations, oil and gas sites, and similar premises—including foreign entities—must obtain a permit if they employ more than 10 private security personnel internally.
Security personnel covered by a permit may work only on the permit holder’s own premises, preventing group companies from pooling or cross-assigning security staff. This restriction is particularly relevant to foreign operations managing multiple entities in Myanmar.
Operational and Compliance Obligations
Both license holders and permit holders must ensure the use of only approved uniforms, insignia, and equipment and must maintain strict confidentiality of all client and business information. They are also responsible for ensuring that all employed security personnel comply with applicable laws and regulations.
Furthermore, proper authorization is required for the handling of any arms or ammunition, and prior approval of training courses, trainers, and training facilities must be obtained under the supervision and monitoring of the relevant department or ministry. Noncompliance may result in warnings, administrative fines, suspension or cancellation of a license or permit, and blacklisting from future applications. Criminal penalties may also apply.
Closing Thoughts
Maintaining the security of operations is an important consideration for businesses present in the Myanmar market. The Private Security Services Law is important for both local and foreign businesses to understand, as it introduces a framework that demands careful attention to licensing, operational protocols, and compliance. Given the complexity and evolving nature of the regulations, engaging knowledgeable local counsel is invaluable for ensuring compliance and mitigating risk, allowing businesses to focus on their core operations with greater confidence.