Private Security Firms: Reform Simplifies Permits, But Law Needed for Real Change

Mexico’s private security industry, a sector employing approximately 800,000 individuals, is poised for significant change following a recent administrative overhaul by the federal government. While the reforms aim to streamline permitting processes for private security companies, industry stakeholders caution that a comprehensive legal framework remains crucial for addressing long-standing structural issues.

The reforms, spearheaded by the Secretariat of Security and Citizen Protection (SSPC), seek to eliminate redundant bureaucratic procedures and establish a national registry for companies, personnel, and weaponry. Currently, companies often face a labyrinth of approvals at the municipal, state, and federal levels, creating significant administrative burdens and opportunities for informal operations. The new system promises to consolidate these processes, reducing delays and increasing transparency.

“The issue of streamlining permits is a major one,” explains José Luis Senosiain, director general of Global Risk Prevention (GRIP). “Currently, it can take six months just to get a guard officially registered. That delay creates problems with employee turnover and labor disputes.”

The reforms also mandate the disclosure of detailed information regarding a company’s operational infrastructure, including armaments, canine units, monitoring centers, and employee backgrounds. This increased transparency is intended to bolster security and facilitate intelligence gathering, effectively turning the private security sector into a potential network of information for the state.

However, industry representatives emphasize that the administrative improvements are only a partial solution. The core problem, they argue, lies in the fragmented regulatory landscape. Currently, there is no overarching federal law governing private security, leading to inconsistencies and allowing informal operators to undercut legitimate businesses.

Raúl Sapién, president of the National Council of Private Security, stated, “We see a good intention, but it lacks a foundation and a strong structure.” He and others are advocating for the passage of a General Law on Private Security, a bill that has been stalled in Congress for over four years.

The absence of a unified legal framework creates an uneven playing field, where formal companies are forced to compete with those operating outside the regulatory system. This not only undermines fair competition but also raises concerns about security standards and accountability. According to the Council, the current legislation even imposes harsher penalties on compliant companies than on those operating illegally.

The proposed reforms aim to address this issue by improving oversight and identifying unregistered companies. However, some question the feasibility of effectively policing the sector without a clear legal mandate and sufficient resources. “They’re going to need a lot of people to go out and do this,” Senosiain noted, questioning the logistical capacity of the government to conduct thorough inspections.

The financial implications of the reforms are also noteworthy. The private security industry has become an increasingly significant component of the Mexican economy, with companies and individuals alike incorporating security costs into their budgets. The sector employs nearly 800,000 people, representing between 20% and 30% of the workforce operating informally. The streamlining of regulations could potentially reduce operational costs for legitimate businesses, but the long-term impact will depend on the effectiveness of enforcement and the eventual passage of a comprehensive law.

The recent passage of the Aland Etienne Safety and Security Act in New York City, January 29, 2026, offers a contrasting example of legislative action aimed at improving conditions for private security personnel. The New York legislation, named after a security officer killed in a mass shooting, guarantees pay, benefits, and protections to 60,000 private security officers in the city. While the Mexican reforms focus primarily on administrative efficiency, the New York law demonstrates a commitment to improving the labor standards and well-being of security personnel.

Despite the challenges, industry leaders remain cautiously optimistic about the potential benefits of the administrative overhaul. Gonzalo Senosiain believes the reforms represent a step in the right direction, but stresses that a comprehensive legal framework is essential for realizing the full potential of the private security sector. “The entrepreneur doesn’t fear control, they fear uncertainty,” he said.

The reforms also seek to address concerns about the misuse of weaponry and the potential for former security personnel with questionable backgrounds to find employment elsewhere. The new system will require companies to report any loss of personnel in real-time, helping to prevent individuals with disciplinary issues from simply moving to another employer. The reforms align with recent changes to the Federal Law on Firearms and Explosives, which restrict the use of official weaponry in private security services.

the success of the reforms will hinge on their implementation and the willingness of both federal and local authorities to cooperate. While the administrative streamlining represents a significant improvement, the industry consensus is clear: a General Law on Private Security is the key to unlocking the sector’s full potential and ensuring a safe and secure environment for businesses and citizens alike.