Pawnshop / Sanlaan Business Guide (Philippines)
Clear, actionable step-by-step checklist with estimated fees to start a pawnshop (sanlaan) business in the Philippines, focusing on BSP requirements, capital, local permits, and practical startup costs.
What you'll learn in this pawnshop (sanlaan) guide
This pawnshop / sanlaan business guide explains the regulatory steps to open a pawnshop: how to structure your company, comply with BSP and BIR/LGU rules, estimate minimum capital and startup costs, and understand key legal cautions.
For related topics, you may also want to read our SEC Partnership/Corporation Registration Guide, TRAIN Law Compliance Guide, and Business Registration & Bank Account Guide.
Para ma-planong mabuti ang minimum capital, cash float, at security costs, puwede mong gamitin ang Budget Calculator para sa capital at gastos, ang Task Management System para sa daily compliance tasks at reporting, at ang Fieldperson Location Tracking kung may cash runs at security checks sa branches.
Pawnshop (sanglaan) — step-by-step requirements & estimated fees
Note: pawnshops are regulated financial businesses. BSP authority is mandatory on top of DTI/SEC, BIR, and local permits. Requirements change over time, so always refer to the latest BSP circulars.
1) Decide business structure & prepare basic documents
Choose your legal structure: sole proprietorship (DTI) or partnership/corporation (SEC). Prepare valid IDs, proof of address, lease contract (if renting), a simple business plan, and proof of initial capital.
There are citizenship/ownership rules for financial-type businesses, so assume majority Filipino ownership requirements and confirm with a lawyer or BSP if needed.
Estimated fees:
- DTI name reservation/registration: ₱230–₱530 (scope and term dependent).
- SEC filing costs: vary with capitalization (often several thousands of pesos for small corporations).
2) Meet minimum paid-in capital
BSP issuances specify minimum paid-in capital for pawnshops. Public references often quote around ₱100,000 as a regulatory minimum for new pawnshops.
Treat this as the absolute floor; you will generally need more capital for safe, cash float, rent, and operations.
3) Apply for BSP approval / Certificate of Authority (mandatory)
Pawnshops must secure authority from the Bangko Sentral ng Pilipinas (BSP) to establish and operate. BSP uses a multi-stage process with specific checklists and forms.
Typical stages (summary):
- Submit initial application with business plan, capital information, and ownership details.
- For corporations, BSP may issue a letter of no objection used for SEC registration.
- After conditions are met, BSP issues a Certificate of Authority to operate as a pawnshop.
Estimated fees: BSP filing and processing fees depend on the current schedule; check the latest BSP circulars or ask BSP directly. These fees are typically non-refundable.
4) Register business name with DTI or SEC
If sole prop, register your business name via DTI BNRS. If corporation/partnership, file incorporation papers with SEC using their eSPARC/online system.
Estimated fees:
DTI: ₱230–₱530. SEC: several thousand pesos or more depending on authorized capital and other charges.
5) Get Barangay Clearance
Apply at the barangay hall with your DTI/SEC certificate, lease documents, and valid IDs. Barangay clearance is required for the Mayor’s/business permit.
Estimated fee:
₱300–₱1,000, depending on barangay and capital.
6) Apply for Mayor’s / Business Permit (BPLO)
Submit your documents to the city/municipal Business Permit & Licensing Office (BPLO). They will compute business tax and fees and process your sanitary, fire, zoning, and other clearances.
Estimated fee:
Around ₱2,000–₱10,000 for small pawnshops, but this can vary significantly by LGU and your declared gross receipts.
7) Register with BIR (TIN, books, official receipts)
Register the business with BIR using Form 1901 (sole prop) or 1903 (corporation). Get your COR, register books of accounts, and obtain Authority to Print (ATP) receipts or enroll with an e-receipt provider.
Estimated costs:
- Historically: ₱500 registration fee and ₱30 DST (confirm with latest BIR guidance).
- Books and official receipts printing: roughly ₱2,000–₱5,500.
8) Fire safety, police, and other sectoral requirements
Pawnshops often require fire safety inspection, CCTV, secure safes, and sometimes coordination with local police for security.
Estimated one-time costs:
- Safe, CCTV, basic security system: ₱30,000–₱150,000.
- Furniture, POS system, signage: ₱10,000–₱50,000.
Pawnshops are also often subject to anti-money laundering and recordkeeping rules similar to other financial institutions, so plan for system and process costs.
9) Insurance, bank account, and operating capital
Consider burglary/business insurance and any bonding that LGUs or partners recommend. Open a corporate bank account (for corporations) and ensure you have adequate cash float and liquidity beyond the regulatory minimum.
Quick consolidated startup cost estimate (small pawnshop)
| Item | Estimated range |
|---|---|
| Minimum paid-in capital (regulatory) | ₱100,000 |
| DTI/SEC name & registration fees | ₱230–₱5,000+ |
| Barangay + Mayor’s Permit + BIR processing | ₱3,000–₱15,000 |
| Equipment (safe, CCTV, furniture, POS, signage) | ₱50,000–₱300,000 |
| BSP filing & compliance (including professional help) | ₱5,000–₱50,000 |
A conservative small pawnshop may need around ₱160,000–₱470,000+ in starting resources, but your actual number will depend heavily on city, premises, and how much cash float and security you choose to maintain.
Important legal and compliance notes
- Pawnshops are closely regulated; BSP registration and authority are mandatory.
- Pawnshop law (PD No. 114) and BSP issuances set rules on pawn tickets, interest rates, and disclosure. Violations can lead to fines and closure.
- Ownership and capital rules differ for sole props vs corporations; consult a lawyer or accountant for structure and tax planning, especially for multiple branches.
If you meant a small neighborhood retail (sari-sari) store
If by “sanlaan” you meant a simple neighborhood retail or sari-sari store (not a pawnshop), the steps and costs are much simpler.
- DTI business name (sole prop).
- Barangay clearance and Mayor’s Permit (basic retail requirements).
- BIR registration (Form 1901), official receipts, and basic books.
- Sanitary/fire inspection if required.
- Supplier accounts and an initial stock budget.
Typical one-time startup range for a micro sari-sari store (permits + initial stock + shelving) is around ₱5,000–₱50,000, depending on location and inventory size.