town hall
Procedure descriptions

Apply for a licence to operate as a pawnbroker or pawnbroking agent

If you want to run the business of a pawnbroker or pawnbroker commercially, you need a permit.

Forms/Online Services

Responsible authority

The local council or city council of the area where your future place of business will be located

Details

Prerequisite

The requirements for the grant of the licence are:

  • Proof of personal integrity
  • Proof that the necessary funds or equivalent security are available for at least the first six months of business operations.
  • Proof of insurance against fire damage, water damage, burglary and robbery

Tip: Further information is available from the relevant trade licensing authority or the relevant Chamber of Industry and Commerce (IHK).

Procedure

You must apply to the relevant authority for a licence to operate a business as a pawnbroker or pawnbroking agent.

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

Deadlines

You must apply for the licence before you start work. You are only authorised to carry on the business once the licence has been granted.

Required documents

  • Completed application form
  • Copy of your identity card or a comparable form of identification
  • A current extract from the commercial or co-operative register, provided the company is entered in the register; otherwise, a copy of the articles of association (for example, in the case of a civil-law partnership (GbR))
  • If the company is based abroad: documents from the country of incorporation proving its legal form
  • Extract from the Federal Central Register (certificate of good conduct) for submission to a public authority for every person entrusted with the management of the business or a branch office (in the case of legal entities: for all persons authorised to represent the entity under the law, articles of association or partnership agreement)
  • Extract from the Central Trade Register for every person responsible for managing the business or a branch (in the case of legal entities: for the entity itself and for all persons authorised to represent it under the law, the articles of association or the partnership agreement)
  • Certificate regarding tax matters issued by the relevant tax office
  • Extract from the register of debtors at the central enforcement court
  • Information from the insolvency court as to whether insolvency proceedings have been opened
  • Certificate of no outstanding tax liabilities from the local tax office
  • If resident abroad: documents from your home country proving your personal reliability
  • Proof of insurance cover for accepted pledged items against fire damage, water damage, burglary and robbery
  • Proof of the funds or security required to run the business. If you are resident in Germany, you will generally need an extract from the register of debtors for this purpose.
  • If you are resident abroad: documents from your home country proving that you have the necessary funds or security.

To verify personal reliability, the competent authority may request further documents on a case-by-case basis.

In the case of legal entities (GmbH, Unternehmensgesellschaft, AG, registered cooperative), you need only complete the application form for the legal entity itself. You must submit all personal documents for all natural persons authorised to manage the business (for example, identity documents). For the legal entity, you will also need an extract from the Central Trade Register.

Partnerships (GbR, KG, OHG, PartG, GmbH Co. KG) are not eligible for authorisation as such. Therefore, each managing partner requires authorisation. For each of these individuals, you must submit a completed application form and all relevant personal documents.

Costs

The amount of the fees is determined by the municipality's fee statutes.

Miscellaneous

Pawnbrokers and pawnbroking agents are subject to a number of obligations under the Ordinance on the Business Operations of Commercial Pawnbrokers (Pawnbroking Regulation), which include, amongst other things, the obligation to keep accounts and to pay any surpluses arising from the realisation of pledged items to the competent authority.

Detailed information

Pawnbrokers and pawnbrokers are subject to a number of obligations under the Ordinance on the Business Operations of Commercial Pawnbrokers (Pawnbroking Ordinance), which include, among other things, the obligation to keep records and to deliver surpluses from pawn realisation to the competent authority.

Legal basis

Gewerbeordnung (GewO):

  • § 34 Pfandleihgewerbe

Verordnung über den Geschäftsbetrieb der gewerblichen Pfandleiher (Pfandleiherverordnung - PfandlV)

Verwaltungsverfahrensgesetz für Baden-Württemberg (Landesverwaltungsverfahrensgesetz - LVwVfG):

  • § 3a elektronische Kommunikation

Gesetz über einheitliche Ansprechpartner für das Land Baden-Württemberg (EAG BB):

  • §§ 1 fort folgende in Verbindung mit § 6b Absatz 1 Gewerbeordnung und § 71a fort folgende Verwaltungsverfahrensgesetz für Baden-Württemberg

Release note

Machine generated, based on the German release by: Wirtschaftsministerium Baden-Württemberg, 12.03.2025