Private Military Companies and Private Security Companies cover wide area of operation in today's world. They are providing services to almost every segment of society, including people, organizations, government offices, and monuments. Their presence at every step generated the need for regulations. In order to regulate Private Military Companies and Private Security Companies, government should:

1.Establish a licensing system with clear standards and contracting process for Private Military Companies and Private Security Companies, and the individuals working for them.

2.Define prohibited activities and clearly regulate all permitted activities.

3.Define basic minimum requirements for transparency and accountability of the firms and in terms of preparation, training, and behavior of the firms and their employees.

4.Establish rules and systems for the screening and vetting of the companies and their personnel.

5.Establish a monitoring system for Private Military Companies and Private Security Companies activities.

6.Establish parliamentary oversight.

7.Establish rules that make contracting competitive, fair and transparent to the public.

8.Secure the financing of all measures required for regulation.

As Private Military Companies and Private Security Companies constitute a transactional industry, there is a need for international involvement too. Because the status of this industry under international law is, at best, ambiguous, clarification of, and amendment it, international law in relation to PMC's and PSC's is required. Proposals exists, ranging from and updating of the 1989 UN Assembly International Convention against the requirement, Use, Financing and Training of mercenaries, creating an UN body that regulates and sanctions the private military and security companies, establishing an international register which compiles declarations by both importers and exporters of services provided by these firms.

Laws must be developed that provide control for the variety of legal and jurisdictional dilemmas that the industry has raised. A key requisite is to extend legal clarity to the questions of who can work for these firms, who the firms can work for, which legal codes will govern and what bodies will investigates, prosecute, and punish any wrongdoing and in what domains. In and ideal arrangement, states will co-ordinate their efforts and involve regional organizations to maximize coverage in order to ease the path to international standards.