Pawnbroking business - apply for a permit

If you want to work as a pawnbroker or pawnbroker on a commercial basis, you need a permit.

The pawnbroker grants a money loan against deposit of a pledge to secure the loan plus interest and costs of business operations.

TheApawnbroker brokers pawn transactions by granting an advance on pawns handed over to him/her and pledging the pawns in his/her name with a pawnbroker.

Whoever wishes to operate the business of a pawnbroker or a pawnbroker's agent requires the permission of the competent authority. The permit may be subject to conditions if this is necessary for the protection of the general public or the pawnbrokers.

In the case of partnerships (e.g. OHG, KG), each managing partner is a trader. In the case of legal entities (e.g. GmbH, AG), permission is granted to the legal entity.

• Identity card or comparable identification document (copy)
• Non-EU citizens: residence permit (copy)
• Proof of the legal form of the company
  • Company registered office in Germany:
    • in the case of registered companies Extract from the commercial register and, if applicable, a copy of the partnership agreement (e.g. in the case of a partnership under civil law (GbR)).
  • Company domicile abroad: documents from this country proving the legal form.
• Proof of personal reliability
  • Residence in Germany:
    • Certificate of good conduct
    • Extract from the central business register for natural and, where applicable, legal persons
  • Residence abroad: Documents from your home country proving that you have the personal reliability to perform the requested service.
  • The authorities may request further documents in individual cases which are suitable for making a statement about your personal reliability as an applicant.
• Proof of the means and securities required for the operation of the business
  • Residence in Germany:
    • Extract from the debtors' register
    • Information from the insolvency register
  • Residence abroad: documents from your home country as proof that you have the necessary means and securities at your disposal
• Insurance certificate
• Floor plan of the premises intended for the business

If you want to operate as a pawnbroker, you must provide special collateral and evidence.

• You will need to show required funds or collateral for the first six months. This can be credit balances or a bank guarantee.
• You must also take out insurance against fire damage, water damage, burglary and robbery and present it at the time of application. You must have a safe for jewellery.
• You must secure your premises against burglary with an alarm system.
• For car pawnshops, the issue of potential environmental hazards from the parking areas of the vehicles must be addressed.

Permission will be refused if:

• Facts justify the assumption that the applicant does not possess the reliability required for the business operation. As a rule, anyone who has been sentenced to a custodial sentence for a crime, theft, embezzlement, extortion, fraud, embezzlement, forgery of documents, receiving stolen goods, usury or an offence against the law against unfair competition within the last five years prior to the submission of the application does not possess this reliability.
• The applicant fails to prove the means required for the business operation or corresponding securities.

The permitPermit for dYou must apply to the competent authority for permission to operate a business as a pawnbroker or pawnbroker agent.

After the examination, you will either receive a permit or a notice of refusal. A permit may be subject to certain conditions.

You must apply for the permit before starting the activity. You are only entitled to exercise the trade after the permit has been granted.

The pawnbroker must notify the competent authority at the start of the business operation which rooms he/she uses for the business operation; furthermore, he/she must notify any change of the rooms used for the business operation without delay.

The pawnbroker is obliged to keep records.