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.
Under the National Credit Act 34 of 2005, a credit provider required to register must apply to the NCR (section 40). 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, and the NCR has said that from 11 November 2016 every person or entity providing credit must register, irrespective of the number of agreements or the value of the principal debt. The earlier threshold was 100 agreements or R500 000.
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 registration criteria in section 45, and the category-specific criteria (for debt counsellors, qualifications, training and experience)
- Form: Form 2 for credit providers and Form 4 for debt counsellors; other categories have their own forms on the NCR list of forms
- 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 40(4), an agreement made by a credit provider who had to be registered and was not is unlawful and void to the extent provided in section 89.
If an application complies and the applicant meets the criteria, the NCR must register the applicant, subject to the conditions it may attach under section 48 (section 45(3)). Under section 46, a natural person is disqualified from registering as a credit provider or debt counsellor if they:
- are under 18 (an unrehabilitated insolvent also cannot be a credit provider, and a natural person cannot be a credit bureau)
- have been removed from an office of trust for fraud or misappropriation of money
- 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
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 open only to a close corporation, company, credit co-operative, trust, statutory entity, mutual bank or bank.
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
- certified copies of the IDs or passports of all members, directors, 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
- a bank letter confirming the banking details, or a cancelled blank cheque
- proof of registration with SARS
- proof of payment of the registration fees
Debt counsellors apply on Form 4 and must show they meet the criteria above; the NCR’s debt counsellor checklist lists the supporting documents. Credit bureaux, payment distribution agents and ADR agents have their own forms and requirements on the NCR list of forms.
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:
- post your registration certificate at your premises
- 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
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, partner, sole proprietor or trustee against the section 46 disqualifications and obtain criminal clearance certificates.
- 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 2600 or 0860 627 627) 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. Ask the NCR how to re-register if your registration lapses.
Frequently Asked Questions
What are the NCR registration fees?
The NCR’s credit provider requirements list an application fee of R550, a branch fee of R250 per location or premises, and an initial registration and annual renewal fee set by the total principal debt of your book, ranging from R1 000 (below R250 000) to R330 000 (R15 billion or more). These are the amounts in Government Gazette 39981 of 11 May 2016; renewing late adds a penalty of 10% of the fee (under 15 days) or 20% (over 15 days). The debt counsellor renewal fee in that gazette is R500. 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 (R0) in 2016, every credit provider must register regardless of how many agreements or how large the loan book is. A person who is not required to register may apply voluntarily (section 40(5)).
Can I apply for NCR registration online?
You download the prescribed form from the NCR’s list of forms. Ask the Registrations Department (011 554 2600 or 0860 627 627) how applications are currently submitted before you send documents.
What happens if I lend without being registered?
The Act prohibits it, the NCR can issue a notice requiring you to stop (section 54), and a credit agreement you entered into while you were required to be registered is unlawful and void to the extent provided in section 89.
Can a sole proprietor register as a credit provider?
Yes. The NCR’s checklist covers sole proprietors as well as members, directors, trustees and partners, provided you are not disqualified under section 46. Supplementary registration for developmental credit is open only to entities such as companies, close corporations, 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.
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.