Legal Steps to Register a Micro Finance Business


South Africa’s micro lending sector is a fast growing one with many players constantly coming on board. By law, micro credit institutions operate under the umbrella of the National Credit Regulator (NCR) under the National Credit Act No 34 of 2005.The Act is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring the enforcement of the Act.

The NCR is also tasked with the registration of credit providers, credit bureau and debt counselors,  and with the enforcement of compliance with the Act. It is a requirement of any party or juristic person who advances money or who extends credit to register with the NCR.

Below are the legal steps and guidelines to register with the National Credit Regulator:

-Complete the NCR Application Form.

-Have a company registration or be a sole proprietor.

-Provide a copy of the share certificate if the application is a company.

-Provide certified copies of ID/Passports of all members, directors, trustees, partners or sole proprietors.

-Complete and sign resolution document if the applicant is a juristic person.

-Provide a criminal name clearance certificate for everyone involved issued by the South African Police Services.

-Proof of payment of the registration fee which is non-refundable application fee of R 500, branch fee of R 250 per location or premises where you will be operating from and registration Fee of R 1500.

-Letter from the bank confirming the applicants banking details or a copy of a cancelled blank cheque.

– Proof of registration with the South African receiver or revenue services.

Once you are registered with the NCR, you may legally enter into credit agreements with consumers.


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