What is the National Credit Regulator of South Africa?
The National Credit Regulator (NCR) of South Africa is mandated to ensure that there is a fair environment in the credit market of South Africa. It is a government arm that falls under the Department of Trade, Industry, and Competition.
The NCR was formed to provide support and advance the social and economic standings of South Africans by regulating for a ‘fair and non-discriminatory marketplace’. According to the NCR, a fair, non-discriminatory marketplace is one that displays full access to consumer credit, characterized by responsible credit granting and credit use, as well as adequate compensation.
Why and how can I register with the NCR?
A person providing credit under agreements to which the National Credit Act applies must register when the total principal debt exceeds the prescribed threshold, which was set at R0 in 2016. Exceptions and exclusions require checking the Act; not every private loan or incidental credit arrangement is treated alike. Credit bureaux, debt counsellors and other regulated categories have their own registration requirements.
The Act generally excludes agreements with a juristic-person consumer whose asset value or annual turnover, together with related juristic persons, reaches the prescribed R1 million threshold. It also excludes a large agreement with a juristic-person consumer below that threshold. R250,000 is the higher credit-agreement threshold, but an agreement’s legal classification and exclusions must be checked before relying on an exemption.
Steps to register with the National Credit Regulator in South Africa
The checklist below mainly concerns credit-provider registration, not every NCR category. Download the current form and confirm the supporting documents and submission channel with the NCR. Form 2 lists 127–15th Road, Randjespark, Midrand and PO Box 209, Halfway House, 1685.
- Determine whether you want to register as an alternative dispute resolution agent, credit bureaux, credit provider, debt counsellor, or payment distribution agent.
- Download and complete the suitable application form from this list. Proof of company registration, or you can be a sole proprietor.
- Proof of the share ownership structure of the business through a copy of share certificate(s) if the application is a company.
- Provide a certified copy(ies) of ID
- Part 7 (disqualification of natural person form)
- Supply the criminal-clearance evidence specified in the current NCR checklist; confirm acceptable issuers and validity before obtaining it.
- Provide certified copies of ID or Passports of any of the following:
- Members
- Directors
- Trustees
- Partners
- Sole proprietors
- Complete and sign a board resolution (to register). Submit this document if the applicant is a juristic person
- Provide a police clearance certificate (issued by the South Africa Police Services (SAPS) for all the following:
- Members
- Directors
- Trustees
- Partners
- sole proprietors
- Proof of payment of the registration and application fees as will be discussed in the next section.
- Provide a bank letter confirming the applicant’s banking details. You can also provide a copy of a cancelled blank check.
- Provide Proof of registration with the South African Revenue Services (SARS)
What are the NCR registration fees?
The National Credit Regulator oversees different credit agencies in South Africa. Therefore, fees will not be the same for registering with the NCR. Below, we summarize the payable fees for both registration and application.
The 2016 fee regulations prescribe a non-refundable R550 application fee and a R250 fee per branch or premises used for registered activities. Obtain the current category-specific quotation from the NCR before paying; initial registration and annual renewal are separate obligations.
Credit-provider registration fees use nine categories. Category 1 covers principal debt of at least R15 billion and has a prescribed fee of R330,000. The smallest category is category 9, for principal debt below R250,000, with a fee of R1,000. Confirm the applicable category and any later amendments with the NCR.
Credit bureaux have a separate fee calculation based on the number of consumer credit enquiries, with a prescribed base fee and cap. Use Table B of the fee regulations and confirm the amount with the NCR; do not apply the credit-provider categories to a credit bureau.
What does the National Credit Regulator do?
The National Credit Regulator (NCR) is a regulatory body that was established in terms of the National Credit Act 34 of 2005 (the Act). The NCR is responsible for the regulation of the South African credit industry.
The primary objective of the NCR is to protect consumers against reckless and irresponsible lending. The NCR also seeks to ensure that credit providers conduct their business fairly, responsibly and transparently.
Who regulates the National Credit Act?
The National Credit Regulator administers and enforces the National Credit Act within its statutory powers. It was established on 1 June 2006; the Act’s main remaining provisions commenced on 1 June 2007.
How do I check if a company is registered with NCR?
Use the National Credit Regulator’s official Register of Registrants at ncr.org.za. Search the appropriate category by the legal name or NCR registration number and check the current status. Company incorporation is handled by the Companies and Intellectual Property Commission (CIPC), a separate body.
Conclusion
The process to register with the NCR could be cumbersome because there are rules that must be followed. The information provided in this article is standard and does not apply to all the types of registrations that take place at the National Credit Regulator. Documents required to register as a credit provider may have a slight difference from those to register as an alternative dispute resolution agent or credit bureaux. Therefore, always take note of these differences when registering with the NCR and ensure that you have the list of paperwork required to register your business.
