All authority, such as government, our employer, and in the home, was established by God so that human life can function in an orderly way. Peter explains how believers are to submit and accept the authority of those duly appointed. The exception to the rule is that believers should resist a command to sin. Love the brotherhood. Honor the king.
Civil government is the first example given.
Submit to every ordinance of man, even ones like Nero who was emperor of Rome when Peter wrote this letter. Obey the civil law including paying taxes, and buying licenses because God ordained civil authority. God ordained civil government for the punishment of evildoers and for the praise of those who do good. Governments have the right to punish offenders for the evil and that may include fines, imprisonment, and even capital punishment. Punishment is the duty of government, not of an individual that has been wronged.