The Measures for the Administration of Pawn (hereinafter referred to as the Measures) is a law and regulation deliberated and adopted by the ministerial meeting of the Ministry of Commerce of People's Republic of China (PRC). With the consent of the Ministry of Public Security, it was promulgated on February 9, 2005 and came into force on April 1 2005. The Measures are divided into general provisions, establishment, modification, termination, business scope, pawn, business rules, supervision and management, punishment and supplementary provisions, with a total of 9 chapters and 73 articles.
The purpose of the "Measures" is to standardize the behavior of pawn shops, strengthen supervision and management, and promote the standardized development of the pawn industry. The minimum amount of registered capital of a pawnshop is the paid-in monetary capital of shareholders, excluding physical objects, industrial property rights, non-patented technologies and land use rights.
Business scope of pawnshop
Pawn refers to the pawnbroker's pledge of his movable property and property rights or mortgage of his real estate, paying a certain percentage of fees to obtain the pawnbroker, and paying interest to the pawnbroker, repaying the pawnbroker and redeeming the pawnbroker within the agreed time limit. Should be established according to the "pawn management measures".
According to Article 3 of the Measures for the Administration of Pawn, the term "pawn" as mentioned in these Measures refers to the pawnbroker's behavior of pledging his movable property and property rights or mortgaging his real estate as a pawn shop, paying a certain percentage of fees to obtain a pawn shop, and paying interest to the pawn shop, repaying the pawn shop and redeeming the pawn shop within the agreed time limit.
The term "pawnshop" as mentioned in these Measures refers to an enterprise as a legal person established in accordance with these Measures, and the relevant provisions of the Company Law of People's Republic of China (PRC) shall apply to its organizational form and organization.