How to Register as a Credit Provider

Any person or business that extends credit that does not form part of an incidental credit agreement is required to register as a credit provider with the National Credit Regulator.

The National Credit Act through the Regulator, is designed to promote the development of an accessible and responsible credit market. The NCR thus deals with the registration of credit providers, credit bureaus, and debt counsellors – as well as the enforcement of compliance with the Act.

Index:

How to become a Credit Provider

Pricing for NCR Applications

Supporting Documents

How Barnard can assist

What happens if you don’t register?

Exclusions

How to become a credit provider

Firstly, you (natural or juristic person) will need establish whether you need to register as a credit provider in terms of the Act. If you need to register as a credit provider, the team at Barnard can assist you with the registration process.

Step 1: Review our rates and complete the Online Form below.
Step 2: Complete the REG 1 form emailed to you by Barnard
Step 3: Compile the bundle of supporting documents required
Step 4: Make the total payment into Barnard’s trust bank account
Step 5: Scan and send your completed REG 1 form and supporting documents to Barnard, with your proof of payment
Step 6: Barnard will compile the application for submission to the NCR including correspondence should we require any further information
Step 7: Submission to the NCR with an approximate waiting time of 8 to 12 weeks
Step 8: Address any further queries received from the NCR
Step 9: If all is in order, your will receive your NCR certificate

Pricing for NCR Applications

Barnard Assistance for attending to the compiling of your application and submission to the NCR: R6 210.00 incl. VAT
PLUS
The following NRC fees:

Administrative Application Fee: R 550.00
Branch fee payable per location/premises from which the applicant conducts registered credit activities: R250.00 per location/premises
Applicable category fees based on the total principal debt amount:

Fee Category	Description	Fee
Category 1	Total principal debt equal or greater than R15 billion	R330 000
Category 2	Total principal debt equal or greater than R5 billion, but less than R15 billion	R190 000 plus 0,001% of the amount by which the total principal debt exceeds R5 billion
Category 3	Total principal debt equal or greater than R1 billion, but less than R5 billion	R70 000 plus 0,003% of the amount by which the total principal debt exceeds R1 billion
Category 4	Total principal debt equal or greater than R100 million, but less than R1 billion	R16 000 plus 0,005% of the amount by which the total principal debt exceeds R100 million
Category 5	Total principal debt equal or greater than R5 million, but less than R100 million	R7 000 plus 0,01% of the amount by which the total principal debt exceeds R5 million
Category 6	Total principal debt equal or greater than R1 million, but less than R5 million	R2 500 plus 0,1% of the amount by which the total principal debt exceeds R1 million
Category 7	Total principal debt equal or greater than R500 000, but less than R1 million	R2 000
Category 8	Total principal debt equal or greater than R250 0000, but less than R500 000	R1 500
Category 9	Total principal debt less than R250 000	R1 000

Supporting documentation you will need:

Companies and Intellectual Property Commission (CIPC) registration document or other official legal registration document
Copy of share certificate
Certified copy of ID/ Passport document of each member/ director/shareholder/trustee/partner
Signed resolution (provided by Barnard)
Bank letter confirming bank account details
Proof of Directorship, Member, or Shareholder of a company or cc (if applicable)
Letterhead containing details of the company’s name, registered business address, details of the contact person, telephone number and email address
Proof of registration with the South African Revenue Services (SARS)
A criminal Clearance Certificate for all the all the members/directors/shareholders/trustees/partners or sole proprietors issued by the South African Police Services (SAPS). The Clearance Certificate must not be older than six (6) months.

Complete the form:

Choose an Option

Your Full Name*

Email address*

Contact Number*

Company Name and Industry (Optional)

Do you need more info or assistance with the following extra services?

Registration and formation of private company

Drafting of a Facility Loan Agreement including security

Review of a Facility Loan Agreement including security

Drafting of bespoke Memorandum of Incorporation of the private companyt including security

No, Thank You

How did you hear about our NCR service?*

Any Additional Information

Should our rates / fees not meet your budget, you can also complete the Registration process yourself by accessing the Application forms at the following website address: https://www.ncr.org.za/index.php/departments/registrations-compliance

This field should be left blank

Barnard can assist with the following:

Attend to registration and formation of private company, including a name reservation which includes share registers and share certificates – R4025.00
Drafting of a Facility Loan Agreement including security – R14375.00
Review of a Facility Loan Agreement including security – R9775.00
Drafting of bespoke Memorandum of Incorporation* of the private company – R5175.00

*WHY A BESPOKE MOI? A bespoke Memorandum of Incorporation (“MOI”) guarantees that all stipulations of the Companies Act, 71 of 2008 are catered to, in alignment with the company’s requirements. A tailored MOI also ensures that the powers, relationships, duties, and accountability of the directors, concerning their interactions with the company, co-directors, prescribed officers, and shareholders are properly regulated. It will decrease the company’s legal and commercial risk and increase business efficiency to give the company a competitive advantage. It can regulate the position when one of the company’s shareholders passes away or is sequestrated. Furthermore, a bespoke MOI assures that the actions of the directors and prescribed officers of the Company are approved in the MOI. This provides ample protection to the directors by confirming that they operate within the bounds of their authorised capacity.

What happens if you don’t register as a national credit provider?

If a person fails to register in circumstances where credit is provided as provided by the Act both the capital and the interest may be at risk and the entire agreement can be found to be void. We strongly suggest that you consider whether you’re regarded as a credit provider to avoid situations where you could lose your money.

Chapter 3, Section 40(3), (4) and (5) of the Act regulates the sanctions that apply to an entity that is required to register as a national credit provider but have not done so. These sections of the Act state:

Section 40 (3): “A person who is required in terms of subsection (1) to be registered as a credit provider, but who is not so registered, must not offer, make available or extend credit, enter into a credit agreement or agree to do any of those things.”
Section 40(4): “A credit agreement entered into by a credit provider who is required to be registered in terms of subsection (1) but who is not so registered is an unlawful agreement and void to the extent provided for in section 89.”

Exclusions (Section 4)

Certain exclusions apply to the requirement to register as a credit provider. Requirements to register as a credit provider is excluded where the consumers are juristic persons (together with all its related juristic persons) with an asset value or annual turnover of at least R1 000 000.00 (one million Rand) or where the juristic person concludes a large credit agreement with the credit provider, with a principal debt of at least R250 000.00 (two hundred and fifty thousand Rand).