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.

Responsibility lies with the district, the independent city, the large independent city and the independent municipality in whose district the activity is to be carried out.

Responsibility lies with the district, the independent city, the large independent city and the independent municipality in whose district the activity is to be carried out.

not specified

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.

not specified

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.

not specified

Fees are charged in accordance with Annex 1 to Section 1 (1) of the General Fee Regulations of the State of Lower Saxony (AllGO) in accordance with No. 40.1.11

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.

not specified