Pawnbroking business; application for a license
If you want to work commercially as a pawnbroker or pawnbroker, you need a license.
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 business operation.
As a rule, this reliability is not possessed by anyone who has been convicted of a crime, theft, embezzlement, extortion, fraud, breach of trust, forgery of documents, receiving stolen goods, usury or an offense against the law against unfair competition in the five years prior to the application.
- The applicant does not provide evidence of the funds required for the business or corresponding securities.
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. A permit may be subject to certain conditions.
The pawnbroker must notify the competent authority which rooms he/she uses 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 records.
You must apply for the permit before starting your business. You are only entitled to exercise the trade after the permit has been issued.
Responsible for editing:Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie
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