Pawnbroker License

If you want to operate a pawnbroking business (granting loans against the pledge of movable property), you need a license under Section 34 of the Trade Regulation Act (GewO). The license covers both pawnbrokers and pawn intermediaries.

You apply at the competent trade authority, which checks your personal reliability and orderly financial circumstances. Required documents include a certificate of conduct, trade register extract, and proof of insurance for the pawned items. Once granted, the license is valid nationwide. You must comply with the Pfandleiherverordnung, which requires detailed record-keeping of each pawn transaction, display of the regulation in your premises, and sets rules on interest rates and storage obligations for pledged goods.