Pawn lending business Permission

The pawnbroker grants a monetary loan against deposit of a deposit to secure the loan, together with interest and costs of the business operation. The pledge agent arranges pledges by granting an advance on the pledges handed over to him and pledging the pledges in his name to a pawnbroker. Anyone wishing to carry out the business of a pawnbroker or broker requires the permission of the competent authority. Permission may be subject to conditions to the extent necessary to protect the general public or the pledge. In the case of partnerships (e.g. OHG, KG), trader is any managing partner. In the case of legal entities (e.g. GmbH, AG), permission is granted by the legal entity.

Identity card or a similar identification document (copy) Non-EU citizens: residence permit (copy) Proof of corporate legal form Headquarters in Germany: in the case of registered companies: extract of the commercial register and, where applicable, a copy of the company contract (e.g. in the case of a company under civil law (GbR)) Headquarters abroad: Documents from this country proving the legal form. Proof of personal reliability Residence in Germany: Certificate of leadership Extract from the Central Trade Register for natural and, if necessary, legal person Residence abroad: Documents from your home country that prove that you have the personal reliability to perform the desired service The Authority may request further documents on a case-by-case basis that are likely to make a statement about your personal reliability as an applicant. Proof of the means and collateral required for operation Residence in Germany: Extract from the debtor stake Information from the Insolvency Register Residence abroad: Documents from your home country as proof that you have the necessary means and collateral Social Floor plan of the premises intended for commercial use


Preconditions
If you wish to act as a pawnbroker, you must provide special security and evidence. They must demonstrate the necessary funds or collateral for the first six months. These can be credits or a bank guarantee. You must also take out insurance against fire damage, water damage, burglary and robbery and present it upon application. A safe must be available for jewellery. You must secure your premises against burglary by means of an alarm system. In the case of car pawnbrokers, the question of the possible environmental hazards must be clarified by the parking areas of the vehicles. Permission is to be refused if: the facts justify the presumption that the applicant does not have the reliability required for the business. As a rule, this reliability does not exist who has been convicted of a final custodial sentence in the last five years prior to the application for a crime, theft, embezzlement, extortion, fraud, infidelity, forgery of documents, stealing, usury or for offences against the law against unfair competition. the applicant does not prove the resources or collateral required for the business.

Hints
The pawnbroker must indicate to the competent authority at the beginning of the business which premises he uses for the business; he shall also notify immediately any change of the premises used for the commercial enterprise. The pawnbroker is obliged to book.
Die Erlau You must apply to the competent authority for the operation of a business as a pawnbroker or pawnbroker. After the exam, you will receive either a permit or a rejection notice. Permission may be subject to certain conditions.

Responsible for the content
Bavarian State Ministry for Economic Affairs, Regional Development and Energy

Last update or date of publication
25.09.2020