NCR registration requirements apply to anyone who lends money or sells on credit in South Africa, and to debt counsellors, credit bureaux, payment distribution agents and alternative dispute resolution agents. You apply to the National Credit Regulator (NCR) on the prescribed form for your category, with company and identity documents, criminal clearance certificates, SARS registration and proof of the fees.
There is no longer a size exemption for lenders. The Minister of Trade and Industry set the registration threshold under section 42(1) of the National Credit Act 34 of 2005 at nil (R0) in Government Notice 513 of 11 May 2016, so every credit provider must register, apart from those that only give incidental credit (for example, charging interest on an overdue account).
Business Requirements at a Glance
- Who registers: credit providers (including pawnbrokers, lessors, instalment sellers and lenders under secured loans), debt counsellors, credit bureaux, payment distribution agents and ADR agents
- Who may apply: a natural person or a juristic person may register as a credit provider or debt counsellor; a credit bureau cannot be a natural person
- Minimum criteria: no disqualification under section 46, the fit and proper test under section 45, and the category-specific criteria (for debt counsellors, qualifications, training and experience)
- Form: Form 2 (credit provider), Form 3 (supplementary registration for developmental credit), Form 4 (debt counsellor), Form 5 (credit bureau)
- Fees: a non-refundable application fee, an initial registration fee, a branch fee per premises and an annual renewal fee
- After approval: a certificate with a unique NCR registration number, annual renewal by 31 July, and ongoing reporting and conduct obligations
Registration and Legal Requirements
Section 40 of the National Credit Act requires a person to register as a credit provider once the principal debt owed to them under credit agreements (other than incidental credit) exceeds the threshold, which is now nil. Until you are registered you may not offer, make available or extend credit, or enter into a credit agreement. Under section 89(2)(d), an agreement made by a credit provider who had to be registered and was not is unlawful.
The NCR registers an applicant who meets the Act’s criteria unless, after a fit and proper test, it finds compelling grounds to refuse (section 45). Under section 46, a natural person cannot be registered as a credit provider, debt counsellor or payment distribution agent if they:
- are an unrehabilitated insolvent or under 18
- have been removed from an office of trust for fraud or misappropriation of money
- were a director of an entity that was involuntarily deregistered, brought the credit industry into disrepute or disregarded consumer rights
- were convicted in the past 10 years of theft, fraud, forgery, perjury, corruption, a violent crime or an offence under the Act, and sentenced to imprisonment without the option of a fine
For credit providers, section 48 lets the NCR also weigh commitments on black economic empowerment and on combating over-indebtedness, and it can attach conditions to your registration. If you plan to offer developmental credit (such as loans for education, small business or low-income housing), you need supplementary registration under section 41 as well, which is only open to companies, close corporations, co-operatives, trusts, statutory entities and banks.
Debt counsellor requirements
The NCR’s criteria for debt counsellors require a Grade 12 certificate or equivalent NQF level 4 qualification, completion of an NCR-approved debt counselling course, and at least two years’ experience in a field such as consumer protection, complaints resolution, legal or paralegal work, accounting or financial services, counselling or training. You may not be under an administration order or debt review, or work in debt collection, credit provision or a credit bureau. The NCR also checks that your own credit record shows you can manage your finances.
Documents and Ownership Information Required
The NCR states that a credit provider application will not be processed without:
- the completed and signed Form 2
- the CIPC registration document or other official legal registration document
- share certificates if the applicant is a company, and where the majority shareholder is a natural person, that person’s certified ID, disqualification declaration and criminal clearance certificate
- certified copies of the IDs or passports of all members, directors, shareholders, trustees, partners or sole proprietors
- a resolution authorising the application if the applicant is a juristic person
- a criminal clearance certificate for each of those people, issued by SAPS or an approved service provider and not older than six months
- a signed and stamped bank letter confirming the banking details, a cancelled cheque, or a stamped bank statement not older than six months
- proof of registration with SARS
- proof of payment of the registration fees
Debt counsellors apply on Form 4 with a certified ID (or work permit for non-citizens), a certified Grade 12 or NQF 4 certificate (with a SAQA evaluation for foreign qualifications), the debt counselling course certificate, a CV detailing employers and experience, proof of SARS registration, a criminal clearance certificate and proof of the fee. Credit bureaux use Form 5 and must also supply an organogram, details of senior management and shareholding information.
Tax, Licence and Compliance Requirements
Registration sits on top of your ordinary business compliance: the NCR requires proof that the applicant is registered with CIPC (for entities) and with SARS. NCR registration is not a substitute for any other licence your business needs.
Once registered, section 52 of the Act requires you to:
- display your registration certificate at every premises where you conduct registered activities
- show your registered status and NCR registration number, legibly, on all credit agreements and communications with consumers
- comply with your conditions of registration and the Act
- pay the prescribed annual renewal fee on time
- keep the prescribed records and file the prescribed reports with the NCR
Credit providers must also follow the affordability assessment regulations, the pre-agreement disclosure and form requirements for credit agreements, and the maximum interest rates, fees and charges prescribed under section 105. The NCR can issue a compliance notice to anyone trading without registration (section 54), and can refer registrants to the National Consumer Tribunal for cancellation of registration.
Process, Deadlines and Ongoing Obligations
NCR registration follows the same basic steps for every category:
- Confirm your category and download the correct form from the NCR’s list of forms.
- Check every director, member, shareholder or trustee against the section 46 disqualifications and obtain criminal clearance certificates (not older than six months).
- Gather the CIPC, SARS, banking and identity documents listed above.
- Pay the application fee, initial registration fee and branch fees into the NCR’s account and keep the proof of payment.
- Submit the complete application to the NCR’s Registrations Department. Incomplete applications are not processed.
- Once approved, you receive a registration certificate and a unique registration number, and your entry appears on the NCR register.
For NCR registration online: the NCR publishes its application forms for download on its website, but check the current submission channel with the Registrations Department (011 554 2700 or [email protected]) before you send documents.
Annual renewal: the renewal fee is due by 31 July every year. The NCR allows a 30-day grace period with a penalty; if you still have not paid, your registration lapses automatically. A lapsed registrant must stop the registered activity and submit a new application with all supporting documents to register again.
Frequently Asked Questions
What are the NCR registration fees?
The NCR’s credit provider requirements list a non-refundable application fee of R550, a branch fee of R250 per location, and an initial registration fee set by the total principal debt of your book, ranging from R1 000 (under R250 000) to R330 000 (R15 billion or more). Debt counsellors, credit bureaux and other categories have their own fees, and an annual renewal fee applies to all. Confirm the current amounts with the NCR before paying.
Do small lenders need to register with the NCR?
Yes. Since the threshold was set at nil in 2016, every credit provider must register regardless of how many agreements or how large the loan book is. Only credit that is purely incidental, such as late-payment interest on an account, falls outside this.
Can I apply for NCR registration online?
You download the prescribed form from the NCR’s list of forms and submit it with your supporting documents. Confirm with the NCR Registrations Department how applications are currently being accepted.
What happens if I lend without being registered?
The Act prohibits it, the NCR can order you to stop, and a credit agreement you entered into while you were required to be registered is unlawful under section 89, which affects your ability to enforce it.
Can a sole proprietor register as a credit provider?
Yes. A natural person or a juristic person can register as a credit provider, provided they are not disqualified under section 46. Supplementary registration for developmental credit is only open to juristic entities such as companies, trusts and co-operatives.
How do I check whether a lender or debt counsellor is registered?
Search the NCR’s Register of Registrants, which lists registered credit providers, debt counsellors, credit bureaux, payment distribution agents and ADR agents.
What if I miss the 31 July renewal deadline?
You have a 30-day grace period with a penalty. After that your registration lapses automatically and you must submit a new application to register again.
Registration categories, forms and fees are set by the National Credit Regulator under the National Credit Act and change from time to time, so confirm current requirements with the National Credit Regulator before you apply. If you still need to set up your entity, see the company registration requirements, and browse all business and compliance requirements.