Pawnbroking - Apply for a licence

You must apply to the competent authority for a licence to operate a business as a pawnbroker or pawnbroker's agent.

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

If you want to work as a pawnbroker, you must provide special securities and evidence.

• You must provide proof of the necessary funds or collateral for the first six months. This can be a credit balance 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. A safe must be available for jewellery.
• You must secure your premises against burglary with an alarm system.
• In the case of car pawnbrokers, the question of possible environmental hazards caused by the parking areas of the vehicles must be clarified.

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 convicted of a felony, theft, embezzlement, extortion, fraud, breach of trust, forgery of documents, receiving stolen goods, usury or offences against the law against unfair competition in the five years prior to submitting the application does not have this reliability.
• The applicant does not provide evidence of the funds required for the business operation or corresponding collateral.

• Identity card or comparable identification document (copy)
• Non-EU citizens: residence permit (copy)
• Proof of the legal form of the company
  • Company headquarters in Germany:
    • for registered companies: Extract from the commercial register and, if applicable, a copy of the articles of association (e.g. for a partnership under civil law (GbR))
  • Company domicile abroad: Documents from this country that prove the legal form.
• Proof of personal reliability
  • Residence in Germany:
    • Certificate of good conduct
    • Extract from the central trade register for natural persons and, if applicable, legal entities
  • Residence abroad: Documents from your home country that prove that you have the personal reliability to perform the desired service
  • In individual cases, the authority may request further documents that are suitable for making a statement about your personal reliability as an applicant.
• Proof of the funds and securities required for operation
  • Residence in Germany:
    • Extract from the debtor register
    • Information from the insolvency register
  • Residence abroad: Documents from your home country as proof that you have the necessary means and collateral
• Proof of insurance
• Floor plan of the rooms intended for commercial use

• § Section 34 of the Trade Regulation Act (GewO)
• Ordinance on the Business Operations of Commercial Pawnbrokers (Pawnbrokers Ordinance - PfandlV)

The pawnbroker must notify the competent authority which rooms he/she is using for the business operation at the start of the business operation; furthermore, he/she must immediately notify any change of rooms used for the business operation.

The pawnbroker is obliged to keep accounts.

• Pawnbroking licence
• Pawnbrokers and pawnbrokers require a licence
• Requirements: personal reliability and proof of the necessary funds and securities for the business operation
• Responsible: the authority responsible for the location of the establishment

• Pawnbroking - Apply for a licence

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