pawnshop businessPawnshops, 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:

  • -Accomplished Business Name Registration Form [Single Proprietorship/Partnership (Optional)]
  • -Registration fee of P300.00
  • 2. Mayor’s/Business Permit
    Local municipality where the business is located
    Validity: 1 year

    Requirements:

  • -Accomplished Business Permit Application Form
  • -DTI – Business Name Certificate
  • -Sketch of the business location
  • -2 pcs. 2×2 colored ID Picture
  • -Registration fee the amount of which depends on the type of the business
  • 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)

  • -Accomplished Form 1901
  • -DTI Certificate of Registration of Business Name
  • -Mayor’s Permit
  • -Registration Fee of P500.00, P15.00 for the Certification Fee and P15.00 for the Documentary Stamp Tax
  • 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:

  • -Accomplished R1 Form (Employer Registration)
  • -Acccomplished R1A form (Employment Report)
  • -DTI Business Permit
  • -Photocopy of Article of Partnership/Incorporation (for partnership and Corporation)
  • -Mayor’s Permit
  • 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:

  • -Accomplished Rule 1020 Form
  • -Lay-out of business location
  • -Vicinity map
  • 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:

  • -Verification Slip Form
  • -Accomplished Registration Data Sheet
  • -Articles of Partnership (for limited partnerships, this should be executed under oath)
  • -Written Undertaking to Change Corporate Name
  • -Clearance from other government agencies, (if needed)
  • -Registration fee of Php 510.00 or more depending on capital contribution
  • -If the contributed capital is in the form of real property, additional requirement is needed:
  • – 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:

  • -Articles of Incorporation and By-Laws
  • -Verification Slip Form (Re: Corporate Name)
  • -Accomplished Registration Data Sheet
  • -Treasurer’s Affidavit
  • -Bank Certificate of Deposit
  • -Authority to Verify Bank Accounts
  • -Written Undertaking to Change Corporate Name, when necessary
  • -Subscriber’s Information Sheet
  • -Minimum paid-up capital requirement is Php100,000.00;
  • -If the paid-up capital is a property, submit the following additional 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

  • -Registration fee of Php360.00
  • 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:

  • -Copy of City/Municipal License/Mayor’s Permit for the current period;
  • -Copy of DTI Certificate of Registration of Business Name
  • -Copy of SEC Certificate of Registration for Partnership and Corporation;
  • -Copy of Articles of Partnership/Incorporation and By-Laws;
  • -Information Sheet duly accomplished by the president/managing partner/proprietor;
  • -Biographical Data duly accomplished by the proprietor or partners or incorporators/directors/officers and individual stockholders owning 10% or more voting stocks;
  • -Bank certification on amount deposited for pawnshop capitalization (at least P100,000);
  • -Notarized Written Undertaking signed by the president/partner/proprietor;
  • -Sample copy of pawn ticket;
  • -Letter request for additional stipulations (if applicable);
  • -Authorized signatories with biographical data;
  • -Sketch of location; and
  • -Letter of Authority to receive Certificate of Registration.
  • -Filing/Processing fee of P1,000.00
  • Sources: wikipedia.org, dti.gov.ph Photo: article.wn.com

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