Section 4. Who May Organize a Security or Watchman Agency. —

Any Filipino citizen or a corporation, partnership, or association, with a minimum capital of five thousand pesos, one-hundred per cent of which is owned and controlled by Filipino citizens may organize a security or watchman agency: Provided, That no person shall organize or have an interest in, more than one such agency except those which are already existing at the promulgation of this Decree: Provided, further, That the operator or manager of said agency must be at least 25 years of age, a college graduate and/or a commissioned officer in the inactive service of the Armed Forces of the Philippines; of good moral character; having no previous record of any conviction of any crime or offense involving moral turpitude and not suffering from any of the following disqualifications:

1. Having been dishonorably discharged or separated from the Armed Forces of the Philippines;

2. Being a mental incompetent;

3. Being addicted to the use of narcotic drug or drugs; and,

4. Being a habitual drunkard.

For purposes of this Act, elective or appointive government employees who may be called upon on account of the functions of their respective offices in the implementation and enforcement of the provisions of this Act and any person related to such government employees by affinity or consanguinity in the third civil degree shall not hold any interest, directly or indirectly in any security guard or watchman agency.

The qualifications for an individual, firm, corporation, partnership, or association not doing business or organized purposely or principally as a watchman or security guard agency who/which is utilizing any of his/its employees to watch, secure or guard his/its business establishment, premises, compound or properties and required to secure a license in accordance herewith shall be as prescribed by law, rules or regulations governing his/its business organization and operation.