If you wish to operate a pawnbroker or pawnbroker business commercially, you need a permit.
Anyone wishing to operate a pawnbroking or pawnbroking business requires a license. Pawnbrokers grant loans of money and receive movable property or securities as collateral. They charge fees and interest on the loan. The fees that may be charged are stipulated in the Pawnbroking Ordinance. Pawnbrokers provide an advance and receive the pawned items in return, which they then pawn in their own name to a pawnbroker.
If you want to work as a pawnbroker, you must provide special security and proof.
You must provide proof of sufficient funds or collateral for the first six months. This can be in the form of savings or a bank guarantee.
Furthermore, you must take out insurance against fire damage, water damage, burglary, and robbery and present proof of this insurance with your application. A safe is required for jewelry.
You must secure your premises against burglary with an alarm system.
In the case of car pawn loans, the question of potential environmental hazards posed by the parking areas of the vehicles must be clarified.
Permission will be refused if:
Facts justify the assumption that the applicant lacks the reliability required for the business operation. This reliability is generally lacking in anyone who, within the five years preceding the application, has been convicted and sentenced to imprisonment for a crime, theft, embezzlement, extortion, fraud, breach of trust, forgery, receiving stolen goods, usury, or an offense against the law against unfair competition.
The applicant fails to provide evidence of the funds or corresponding security required for the business operation.
Identity card or a comparable identification document (copy)
The authority may request further documents in individual cases that are suitable for making a statement about your personal reliability as an applicant.
The license to operate a pawnbroking business is valid throughout Germany. The pawnbroker must notify the relevant authority of the commencement of business operations and any change of premises. The pawnbroker is required to keep accounts. The license may be subject to conditions, insofar as this is necessary for the protection of the public or the pledgors, and under the same conditions, the subsequent addition, amendment, and supplementation of conditions is also permissible.
You must apply for the permit before starting your business. You are only authorized to operate your business after the permit has been granted.
You must apply for permission to operate a business as a pawnbroker or pawnbroker at the relevant consumer protection, trade and environment office.
After the review, you will either receive permission or a rejection notice. Permission may be subject to certain conditions.
A few days to a few weeks, depending on the individual case and the completeness of the documents.
180 EUR to 280 EUR
Contradiction
Section 34 of the Trade Regulation Act (GewO)
Section 34 of the Trade Regulation Act (GewO)
Regulation on the business operations of commercial pawnbrokers (Pawnbroker Regulation - PfandlV)
Regulation on the business operations of commercial pawnbrokers (Pawnbroker Regulation - PfandlV)
Keywords: Pawnbrokers, permit Pawnbroker, permission
Last updated: 11.04.2026