You'll need to use Creation Ruling Mandate from Masters of Jade for 2e, yes. It's essentially 3e-compatible. 3e itself deliberately does not have system-level support for that, on the assumption that even as rulers, you never have that degree of control over institutions you rule over, and a game about rulership ought to be about something like the West Wing or political Game of Thrones where you're playing people within a kingdom exerting personal influence to try to steer it, in competition with other individuals trying to steer it differently, while a system that lets you stat up a kingdom...