Not every citizen was banned from handgun ownership. Having the right connections within the political climate of the time & being of prominance favorable to the Reich would allow you to own a pistol with the blessings of the local Police.
In 1938, the party in power in Germany passed a Firearms Act with regard to handgun ownership. Long guns did not require any permit to purchase or possess in most cases.
In the 1938 Act:
A permit to purchase, possess and carry a handgun was necessary.
Permit applicants had to show a 'need' for said handgun.
Minimum age was 18 or perhaps 20, I don't recall.
**Government workers, Nazi Party Members, or if you had a German Federal Hunting Permit exempted you from any handgun permit regulations.
(The Hunting Permit was difficult to obtain and required the ownership of hunting property IIRC...so usually a person of wealth & usually political connections in that era.)***
Anyone of the Jewish religion was strictly forbidden to own any firearm.
The firearms permits were good for 3 years.
All firearms dealers were required to keep dedicated records of sales and dispositions. All the records were turned over to the local Police authority on a scheduled basis for review.
So civilians were allowed to own firearms and handguns in particular in most cases as long as the restrictions were met by the applicant.
Strict gov't rules and regs regarding sale, possession ect (of handguns) were the law of the land for the average citizen while an elite layer of Gov't politicians, supporters and those in a position of wealth and power were exempt.
Sounds familiar.
Nazi era police markings are usually an Eagle/L,,Eagle/C,or ,Eagle/F stamped on the side of the pistol,,generally the frame.
Usually commerial proofs on the gun.
Weimar Era Police markings are much more involved and confusing and may still have been on some other types of pistols used in the 20's and early 30's. Mostly Lugers, 1913 JP Sauer's, ect.
The recycling of guns used in earlier duties to newer assignments results in multiple markings being present in some cases.
Not much ever got throw away.