How to open a pawnshop and bureau of currency exchange in Kazakhstan? Printable versionLast update: 24.09.2020
When opening your own business, future businessmen are often ask themselves "where to start" and "how to properly draw up all the documents". In this article we will consider the opening of a pawnshop.
How to open a pawnshop in Kazakhstan
In general, it is not difficult to open a pawnshop in Kazakhstan. The most important thing in such a business is compliance with all the legislative requirements that were drawn up for the Lombard business. To carry out the activities of a pawnshop, it is necessary to register the LLP with the activities of the pawnshop.
The activity of pawnshops is regulated by the Civil Code of the Republic of Kazakhstan (Part 1 of Article 328 of the Civil Code of the Republic of Kazakhstan).
Pawnshops carry out their activities only if there are Rules for conducting pawnshop operations, which are approved by the highest authority of the pawnshop and must contain the following information:
- Limit amounts and terms of loans;
- Limit values of interest rates on loans;
- Rates and tariffs for conducting operations;
- Rights and obligations of the pawnshop and its clients, their responsibility;
- The procedure for issuing duplicate copies to the pledger when a pledge ticket is lost;
- Other conditions.
Pawnshops in the beginning or the termination of the activity are obliged to notify the authorized body on financial monitoring in the order established by the Law of the Republic of Kazakhstan "On Permits and Notifications".
The rules for conducting pawnshop operations are to be placed in a place that can be viewed by pawnshop customers.
In addition to these rules, the pawnshop must have internal pawnshop rules that must specify:
- structure, tasks, functions and powers of pawnshop departments;
- functions and powers of the internal audit service, the credit committee and other permanent bodies (if any);
- rights and duties of heads of structural divisions;
- powers of officials and employees of the pawnshop in the course of their transactions on his behalf and at his expense.
Legal regulation of pawnshops
The main provisions on the activities of pawnshops are regulated by Article 328 of the Civil Code. Thus, in accordance with paragraph 1 of this Article, acceptance from the citizens of the pledge of movable property intended for personal use, to secure short time loans, can be carried out as an entrepreneurial activity by legal entities registered as pawnshops, whose exclusive activities are:
- Provision of short-term loans secured by movable property.
- Accounting, storage and sale of jewelry containing precious metals and precious stones.
Thus, operations in the pawnshop are mainly related to the provision of loans, with the purchase and storage of precious metals, stones, cars, household items, etc.
Register as a LLP
Since 2006, due to amendments to the licensing legislation, the activity of the pawnshop in Kazakhstan is not licensed. First of all you need to register as a LLP to obtain a certificate of registration of a legal entity. To find out more about how the registration of the LLP takes place, you can on the "e-government" portal on the basis of the information provided in the article "What you need to know when starting a business in Kazakhstan? ".
The procedure of registration as a Limited Liability Partnership is possible in online mode through the portal of "electronic government". To do this, you need to use the service "State registration of legal entities, record registration of their branches and representative offices", or you can obtain a certificate through the Public Service Centers (NJSC State Corporation "Government for Citizens").