Information for Pawnbrokers

      

•   1. How can I start a pawnbroking business?
  If you wish to start a pawnbroking business, you are required to apply for a Pawnbroker's Licence from the Registrar of Pawnbrokers. Online application can be made here.
  
  Before you submit your application, it is advisable that you familiarise yourself with the provisions of the Pawnbrokers Act (Chapter 222) and Pawnbrokers Rules. These are obtainable from SNP Corporation Ltd, Legal Publishing, 1 Kim Seng Promenade, #18-01/06 Great World City East Tower, Singapore 237994.
  
  Criteria / Condition For The Grant Of A Pawnbroker's Licence

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  Following are some of the criteria/condition for the grant of a Pawnbroker's Licence:

  • the applicant must be of good character and is a fit and proper person to carry on the business of pawnbroking;
  • the premises will not be used for the conduct or transaction of any business other than that of pawnbroking;
  • the applicant would obtain adequate insurance against damage, theft or loss of articles that may be pawned with him;
  • the applicant has deposited with the Accountant-General a sum of $20,000 as security for the proper conduct of his business under the licence; and
  • proposed pawnshop has a paid-up capital of not less than $2,000,000.

  Besides the above criteria, a pawnbroker is also required to comply with other conditions which may be imposed by the Registrar from time to time. For example, all the operations of the pawnbroking business shall be computerised, all the pawnbrokers shall participate in the Interbank GIRO System (IBG) and other cashless mode of electronic receipts and payments, etc.
•   2. How can I apply for a pawnbroker’s licence?
  Procedure Of Application

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  The procedures of the application are as follows:
  
  

  • Please apply to the Accounting & Corporate Regulatory Authority (ACRA) for the incorporation and registration of your proposed pawnshop as a company.
  • Thereafter, please submit your application online here.
  • If you are incorporating a company for the pawnbroking business, please ensure that the following object clauses are being incorporated in the Memorandum of Association of the company:
    
    "To carry on the business of pawnbroking, to hold a pawnbroker's licence, to accept pledges from clients, to dispose of overdue unredeemed pledges and perform all the activities of a pawnbroker as permitted under the Pawnbrokers Act."
    
    
  • You must ensure that the proposed premises can be used for pawnbroking business. For example, if the premises is a HDB shop, you must obtain the necessary approval from HDB for the operation of a pawnshop at the premises.
  • Under the Pawnbrokers Rules, you are required, within one week, after submitting your application:
    
    a) to advertise, at your own expense, your application in one English and one Chinese newspaper for two consecutive days;
    b) to paste a copy of the advertisement (one in English and one in Chinese) for a period of three weeks from the date of pasting, at the main entrance of the proposed pawnshop premises.
    
    You will need to send us a copy of the original advertisements and photographs showing the advertisements pasted at the main entrance of the premises.
    
    
  • When required to do so, you are to permit the Registrar or any person authorised in writing by him, any police officer not below the rank of Inspector and any officer authorised in writing in that behalf by the appropriate building authority, to enter and inspect the proposed pawnshop premises.
  • In order that you do not incur wasted costs, you are advised to commence the renovations of the proposed pawnshop premises after our Registry has written to you to inform you that you may proceed with the renovations.
  • You are to submit to the Registry your plans for the renovation and fitting out of your pawnshop which should include and show –
    
    a) a strongroom for the safekeeping of pledges;
    b) a comprehensive security alarm system with monitoring service;
    c) a CCTV camera and monitor system;
    d) a computer system for the operations of the pawnshop business.
    
    
  • You are to obtain an insurance policy for the entire duration of your licence from an insurance company or co-operative society registered under the Insurance Act and carrying on business in Singapore, for loss of and damage to pledges held in your pawnshop premises, including loss of or damage to the pledges when conveyed from your pawnshop to an auction venue and when at the auction venue.
  • After the renovations have been completed satisfactorily, you would be required to forward to us the following fees for the issuance of a Pawnbroker's Licence:
    
    

  Security Deposit : $20,000
  Licence Fee : $3,000
  
  Processing Time

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  Please ensure that all the information/documents given in the application are correct and in order. We will process your application within 3 weeks from the date of complete information received. The issuance of a licence may require 3 to 6 months from the time of your application depending on the complexity of your case, the time taken by the Police in their investigation and the time taken to carry out your renovation and fitting out satisfactorily.
•   3. How can I update my company's or licensee's particulars?
  Update Of Company's/Licensee's Particulars

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  Please submit an online application at the website of Online Business Licensing Service (OBLS) for the following update/changes to your company’s/licensee’s particulars:
  
  

  • Change of company/business name;
  • New appointment of directors / managing directors / partners / managers / shareholders;
  • Change of licensee;
  • Change of company/business operating address;
  • Resignation of directors/managing directors/partners/managers; and
  • Change of company/business contact details.

  
  Please note that for updates (1) to (4), you are required to submit the online application to seek approval from the Registry of Pawnbrokers before you proceed with the update/changes. Please update this information with ACRA after receiving the approval from the Registry of Pawnbrokers.
  
  For changes relating to (5) and (6), you are required to notify the Registry of Pawnbrokers by submitting an online application.
  
  A copy of the online application form for the above updates/changes is available HERE.
•   4. How can I terminate my pawnbroker’s licence?
  If you wish to terminate your pawnbroker’s licence, you may submit your termination application HERE.