IS A SECURITY AND ORDER LICENSE REQUIRED FOR OPERATING A PAWNSHOP ESTABLISHMENT?

Legal situation: I am currently considering opening a pawnshop establishment. Could you please advise me on the current requirements for opening a pawnshop establishment? Two years ago, I was administratively fined for disturbing public order. Will this have any impact on my ability to open a pawnshop establishment?

FDVN’s Opinion:

Thank you for your inquiry to FDVN Law Firm ("FDVN"). After studying the relevant legal regulations, FDVN would like to share our opinion regarding your request for advice.

Specifically, pawnshop services must meet the following security and order requirements:

I. General conditions: Article 7 of Decree 96/2016/ND-CP, including:

1. A business establishment must be registered, licensed or established under the law of Vietnam.

2. The person in charge of security and order of a business establishment must not be one of the following subjects:

a) Vietnamese citizens:

A person has been criminally prosecuted and being under investigation, prosecution or adjudication by a Vietnamese or foreign procedural body.

A person has a criminal record on infringing upon the national security or deliberate commission of a crime liable to a prison term of 03 years or more which has not yet been expunged; or is suspended from serving a prison sentence; or is serving a non-custodial rehabilitation; or is under the mandatory supervision, or the prohibition from residence or holding certain position or running a business sector subject to security and order conditions upon the court’s decision.

A person is liable to the compulsory educational measures at the community; is waiting for a decision on imposition of an administrative penalty granted; is addicted to drug; is suspended from the compliance with a decision on serving a sentence in correctional institution or rehabilitation center; or has faced an administrative penalty but the period for being considered as not yet facing an administrative penalty is not satisfactory as regulated;

b) Vietnamese people who hold foreign passport and reside abroad, and foreigners:

A person is not permitted by a competent authority of Vietnam to stay in Vietnam.

3. Conditions on fire prevention and fighting have been satisfied as referred to by the law on fire prevention and fighting.

II. Specific condition: As amended and supplemented by Clause 1, Article 1 of Decree No. 56/2023/ND-CP, Article 9 of Decree No. 96/2016/ND-CP stipulates that pawnshop service providers must also meet the following condition: The person in charge of security and order of a business establishment providing pawnshop service must have at least 05 years of registered permanent residence at the commune/ward/commune-level town where the business location is registered, and within 05 years preceding the business registration date, has not faced any administrative penalty for any of the following violations: resistance of law enforcement officers, disturbance of public order, deliberate infliction of injuries, usury, gambling, organization of gambling or gambling-dens, theft, obtaining property by fraud, or illegal impoundment of property.

Therefore, to be eligible for operating a pawnshop establishment, all the above conditions must be fully met. As it has been found that you were administratively sanctioned for disturbing public order two years ago, you do not meet the requirements to open a pawn shop under Clause 1, Article 1 of Decree No. 56/2023/ND-CP, which amends and supplements Article 9 of Decree No. 96/2016/ND-CP.

The above is FDVN's advisory opinion in response to your consultation request, based on our research of relevant legal regulations. We hope that FDVN's advice will be helpful to you.

Le Quynh from FDVN Law Firm

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