How to Start a Pawnshop Business

Pawnshops, dating back to ancient times, were the earliest forms of lending business institutions providing people with an easy, fast way to borrow small amounts of money with items of personal property used as collateral.

How does a Pawn shop works?
Basically, the main activity of a pawnshop is lending money for interest based on valuable items that customers bring in. It works like this:

Step 1. A customer brings an item usually a jewelry, electronics such as televisions, cellphones, computers, video games and other valuable item to a pawnshop.
Step 2. The pawnbroker assesses an item for its condition and saleability. After which, the pawnbroker determines the amount of money to be loaned.
Step 3. You repay the loaned money plus the interest rate and you’ll get your collateral back.
Step 4. If you fail to repay the loaned money, the pawnbroker keeps the collateral.

How to get a Pawn shop Business Permit
To get a license, you must first decide as to what type of business will you be running.

For Single Proprietorship:
1. Business Name Registration Certificate
Visit Department of Trade & Industry (DTI)
Provincial Office where the business is located or log on to www.bnrs.dti.gov.ph
Validity : 5 years

Requirements:

2. Mayor’s/Business Permit
Local municipality where the business is located
Validity: 1 year

Requirements:

3. Tax Identification Number (TIN) Agency: Bureau of Internal Revenue (BIR)National Office, Agham Road, Diliman, Quezon City Trunkline: (632) 981.7000 / 981.8888
Email: contact_us@cctr.bir.gov.ph
Website: www.bir.gov.ph

Requirements: (to be submitted to BIR Revenue District Office where the business is located)

The RDO shall issue the Certificate of Registration (Form 2303).

4. Social Security System (SSS) Certificate
Social Security System (SSS) Loans and Investment Office
SSS Building, East Avenue, Diliman, Quezon City Tel. nos.: (632)920.6401 / 920.6446
Email: member_relations@sss.gov.ph
Website: www.sss.gov.ph

Requirements:

5. Department of Labor and Employment (DOLE)
Registration (with 5 or more employees) Agency:
Department of Labor and Employment
(DOLE)-Labor Standard and Enforcement Division Address: 2nd Flr. Dy International Building, San Marcelino cor. Gen. Malvar St., Malate, Manila
Tel. nos.: (632) 339.2013. Hotline No.: 527.8000
Email: osec@dole.gov.ph
Website: www.dole.gov.ph

Requirements:

For Partnership:
Securities and Exchange Commission (SEC) Certificate
Agency: Securities and Exchange Commission (SEC)
Address: SEC Building, Edsa, Greenhills,
Mandaluyong City Tel. nos.: (632) 726.0931 to 39
Email: mis@sec.gov.ph
Website: www.sec.gov.ph
or http://iregister.sec.gov.ph/MainServlet (for online registration)

Requirements:

– Deed of Assignment executed by the stockholder who is the owner.

For Corporation:
Securities and Exchange Commission (SEC) Certificate Agency:
Securities and Exchange Commission (SEC)
Address: SEC Building, Edsa, Greenhills,
Mandaluyong City Tel. nos.: (632)726.0931 to 39
Email: mis@sec.gov.ph
Website: www.sec.gov.ph
or http://iregister.sec.gov.ph/MainServlet (for online
registration)

Requirements:

– Statement of Assets and Liabilities; – Deed of Assignment executed by the stockholder who is the owner of the property in favor of the corporation. (If the property contributed is a building or land, the deed must be presented to the Register of Deeds for registration);
– If the property being contributed is a building, submit detailed list of the building/s giving a brief description of each;
– If the property being contributed is a parcel of land, submit detailed list of the parcel of land showing the OCT/TCT numbers, registered owner, lot and block numbers, area, location and encumbrances, if any; and

Other Agency
Bangko Sentral ng Pilipinas Agency:
Bangko Sentral ng Pilipinas
Address: A. Mabini St. cor. P. Ocampo St.
Malate, Manila Tel. No.: (632)524.7011.
Fax No. (632)523.1252
Email: bspmail@bsp.gov.ph
Website: www.bsp.gov.ph
Validity : 1 year

Requirements:

Sources: wikipedia.org, dti.gov.ph Photo: article.wn.com

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