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.
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.
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:
Fee Category
Description
Fee
Category 1
Total principal debt equal or greater than R15 billion
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
Category 8
Total principal debt equal or greater than R250 0000, but less than R500 000
Category 9
Total principal debt less than R250 000
*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.
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:
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).
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