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 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 counselors – as well as the enforcement of compliance with the Act.
How to become a Credit Provider
Firstly, you (natural or juristic person) will need to establish whether you need to register as a credit provider in terms of the Act. If you need to register as accredit provider, the team at Morningside Consulting and Training Group can assist you with the registration process:
- Step 1: Check our rates and contact us through email: info@mctg-consulting.co.za
- Step 2: Complete the REG 1 Form emailed to you by Morningside Consulting.
- Step 3: Compile the bundle of supporting documents required.
- Step 4: Make the total payment into Morningside Consulting and Training Group’s bank account.
- Step 5: Scan and send your completed REG 1 Form and supporting documents to Morningside Consulting, with your proof of payment.
- Step 6: Morningside Consulting and Training Group will compile and prepare 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, you will receive your NCR certificate.
Pricing for NCR Applications
Morningside Consulting and Training Group assistance for attending to the compiling and preparation of your application and submission to the NCR, R6100,00 incl. VAT.
The following NCR fees:
- Administrative Application Fee: R550.00
- 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 0000 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 equals or greater than R500 000, but less than R1 million. | R2 000 | |
| Category 8: | Total principal debt equals or greater than R250 000, 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 documents or other official legal registration documents.
- Copy of share certificate
- Certified copy of ID/Passport document of each member/director/shareholder/trustee/partner
- Signed resolution (provided by Morningside Consulting and Training Group).
- Bank letter confirming bank account details.
- Proof of Directorship, Membership, or Shareholder of a company or cc (if applicable)
- Letterhead which contains 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 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.
Morningside Consulting can Assist with the following:
- Attend registration and formation of private company, including a name reservation which includes share registration and share certificates – R2650.00
- Drafting of Facility Loan Agreement including security – R14100.00
- Review of Facility Loan Agreement including security – R8500.00
- Drafting of bespoke Memorandum of Incorporation of the private company – R3560.00
Get in touch!
For More Information and Free Consultation, contact us at: info@mctg-consulting.co.za
Tel: 011 367 0636
