Service Finder
Apply for a pawnbroking license
Service Description
The pawnbroker grants a loan of money against the deposit of a pledge to secure the loan together with interest and the costs of running the business.
The pawnbroker 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.
Anyone wishing to operate the business of a pawnbroker or pawnbroker requires the permission of the competent authority.
The permit may be subject to conditions if this is necessary to protect the general public or the pledger. Under the same conditions, the subsequent inclusion, amendment and addition of conditions is also permitted.
In the case of partnerships (e.g. OHG, KG), the trader is any managing partner. In the case of legal entities (e.g. GmbH, AG), the license is granted to the legal entity.
Process flow
You must apply to the competent authority for a license to operate a business as a pawnbroker or pawnbroker.
After the examination, you will either receive the permit or a rejection notice.
Who should I contact?
Please contact the responsible trade office.
Requirements
If you want to work as a pawnbroker, you must provide special securities and evidence.
- You must provide evidence 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 when submitting your application. A safe must be available for jewelry.
- You must secure your premises against burglary with an alarm system.
- In the case of car pawnbroking, 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 commercial 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 an offense against the Unfair Competition Act 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 or corresponding securities.
Which documents are required?
- Identity card or comparable identification document (copy)
- Non-EU citizens: residence permit (copy)
- Proof of the legal form of the company
- Registered office in Germany:
- For registered companies: Extract from the commercial register and, if applicable, a copy of the articles of association (e.g. for a civil law partnership (GbR))
- Registered office abroad: documents from this country proving the legal form.
- Registered office in Germany:
- 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 proving that you have the personal reliability to perform the desired service
- In individual cases, the authorities may request further documents that are suitable for making a statement about your personal reliability as an applicant.
- Residence in Germany:
- Proof of the funds and securities required for the business
- 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 securities
- Residence in Germany:
- Proof of insurance
- Floor plan of the rooms intended for the business
What are the fees?
Fees are charged in accordance with the state ordinance on fees.
What deadlines do I have to pay attention to?
You must apply for the permit before starting your business. You are only entitled to exercise the trade after the permit has been issued.
Legal basis
What else should I know?
- The pawnbroker must notify the competent authority which rooms he/she is using for business operations at the start of business operations. Furthermore, he/she must immediately report any change of premises used for the business.
- The pawnbroker is obliged to keep accounts.
- The license to operate as a pawnbroker is valid throughout Germany.
Comments
A pawnbroker may hold an auction license at the same time and vice versa. However, he/she may not conduct the auction him/herself.
Author
The text was automatically translated based on the German content.
Technically approved by
Thuringian Ministry of Economics, Science and Digital Society
Professionally released on
16.02.2022
Source: Zuständigkeitsfinder Thüringen (Linie6Plus)
Competent Authority
Ordnungs- und Gewerbeamt
Address
99310 Arnstadt, Stadt
