0800 007 269 (Toll Free)
0800 007 269 (Toll Free)

Company Registration at CIPC, SARS, COID, CUSTOMS, CIDB & More
Get Compliant from Anywhere, Easy and Fast!

Table of Contents

  • Company Compliance

Why Your Business Needs a COIDA Letter of Good Standing in 2025

Learn how your business can benefit from a letter of good standing from coida

In South Africa, a Letter of Good Standing (LOGS) is one of the most important compliance documents your business can get. This is especially true if you’re looking for work with government institutions and corporations, bidding on contracts, or getting finance.

The COIDA certificate shows that your business is registered and meeting its obligations under the Compensation for Occupational Injuries and Diseases Act (COIDA). Whether you’re a new business owner or an experienced one, it’s important to know what the Letter of Good Standing standards and processes are. 

In this article, we talk about what a COIDA certificate is, why and when you need one, and how we can help you every step of the way.

The team reviewing their coida certificate before applying for a tender

What is a Letter of Good Standing / COIDA Certificate?

A Letter of Good Standing (LOGS), also known as a COIDA certificate, is an official document issued by the Compensation Fund of the Department of Employment and Labour. It serves as proof that your company is registered with COIDA (Compensation for Occupational Injuries and Diseases Act) and compliant with its requirements – such as submitting Return of Earnings (ROE) and paying the necessary assessment fees.

A COIDA Certificate basically shows that your business is in good standing with the Compensation Fund and eligible for claims cover if an employee is injured or becomes ill due to work-related activities.

More than just a legal requirement, a Letter of Good Standing can open doors to new business opportunities, contracts, tenders, and even funding, making it a vital part of operating a compliant and competitive company in South Africa.

Get Compliant with COIDA Today

In the past 90 days, our COIDA Experts have assisted over 1280 clients with getting a valid Letter of Good Standing for their businesses.
Get a FREE Consultation

Why do you need the COIDA Certificate?

There is more than one way that having a Letter of Good Standing protects your business and staff. After all, it is required by law under the COIDA Act.

Legal and financial adherence

It makes sure that you’re following national labour laws, which keeps you out of trouble with the law and avoid expensive fines with the Department of Labour.

Getting to contracts and tenders

Large businesses and government institutions need this document before they can give work. Your bid will be turned down right away without it.

Credibility of your business

Partners, customers, and suppliers can be sure that your business is ethical and responsible if you have a valid company Letter of Good Standing. Furthermore, if you are a subcontractor, it will make life easier for the Principal Contractor as they won’t be responsible for your staff.

Here is more information on what is a coida certificate in South Africa and how you can get one

Keep your employees (and yourself) safe.

If your business has a current, valid COIDA certificate, workers who get hurt on the job can file a claim with the Compensation Fund that will then carry the cost of the medical and other relevant expenses.

When will you need to provide a Letter of Good Standing?

If you work in an industry that requires a lot of manual labour or offer services that require it, your clients will almost certainly ask for a valid COIDA certificate. Here are some instances where a Compensation Letter of Good Standing will be requirement:

  • Putting in bids for government or business contracts.
  • Looking for deals with big companies.
  • Trying to get loans or business financing.
  • If you work in building, mining, logistics, manufacturing, or other dangerous fields.
  • Get hired as a freelancer or hire one.
  • Providing proof of compliance during checks or audits.

What do you need to get a Letter of Good Standing?

As an employer or business owner, you must meet these requirements to get a COIDA Letter of Good Standing, along with the laws that go with them:

Learn more about the letter of good standing requirements with Company Partners
  • Part 80 of the COID Act says that you need to be registered with the Compensation Fund. We can help you sign up with COIDA.
  • Part 82 of the COID Act says that you have to keep your Return of Earnings entries up to date. We are here to help you with your Return of Earnings Submissions.
  • Part 83 of the COID Act says that the Compensation Fund must fully assess you in terms of the amount you owe. This basically means they will review your annual salary data and the category your business falls under such as “agriculture”.
  • Part 86 of the COID Act says that you have to make all of your payments on time.
Attention if you pay your coida assessment fees monthly, you will need to apply for a letter of good standing every month

If you opt to pay your assessment fee in instalments every month, your COIDA Letter of Good Standing will also need to be renewed every month.

How do I apply for a COIDA Letter of Good Standing?

A good deal of business people want to know, “How do I get my COIDA certificate?” It can take a long time and be hard to understand if you don’t have professional help.

For a quick look at how to get a company Letter of Good Standing, this is the process, step-by-by:

To register for COIDA, you must go through the Department of Employment and Labour. This requires that you complete the W.As2 form, whereafter it needs to be submitted to the Department.

Submit your Return of Earnings (ROE). This is done by completing and submitting this form from the Department.

Based on your ROE, you’ll pay the Assessment Fee. This is determined by the risk group you fall into and how it’s classified. This is an annual fee that must be paid.

Ask the Compensation Fund for a Letter of Good Standing. You might have to follow up because of the waiting period.

Why Having a Letter of Good Standing is Helpful

Still not sure if the work is worth it? When your business gets a legal Letter of Good Standing, it’s more than a means to get tenders, bigger contracts and getting loans.  Your employees will know that the Compensation Fund will cover their costs if something goes wrong on the job. Also, think of it as a means to long-term growth that keeps your business compliant and opens the door to new and bigger opportunities. Compliance is the foundation of sustainable business growth, and a Letter of Good Standing is one of the cornerstones.

Introducing the Free COIDA Assessment Fee Calculator

A top tip is to make use of our COIDA return of earnings calculator to determine your assessment fees

Use our free Return of Earnings Calculator to get an idea of how much your minimum assessment fee payment will be.

FAQs regarding COIDA Letter of Good Standing

Having a COIDA Letter of Good Standing is often required for tenders and contracts. This is just to make sure that you’re officially allowed to work and that you’re responsible for your employees.

You can’t get your workers covered by the Compensation Fund if they get hurt on the job and the Fund isn’t registered with COIDA or in good standing. This means that the Fund won’t pay for their medical bills or give them money if they die or are permanently injured.

The following method is used to calculate how much each employer’s assessment fee is:

Fee for assessment = total workers’ pay divided 100 times the evaluation tariff

What this means:

Total workers’ pay is the total amount of money that all of the employer’s employees make in a year, as shown on the Return of Earnings.

The assessment tariff is the amount that the company has to pay into the Compensation Fund. It is based on the type of business and the level of risk it faces. For example, the risk level for a building company will be higher than for a normal office-based company.

What affects the rates of assessment?

  • Industry: Employers are put into one of more than one hundred groups, and each has its own tax rate. Assessment tariffs are higher for industries that have a higher amount of risk.
  • Accident rates: If an employer’s accident rates are higher than those in the same group, their assessment tariff may go up.
  • On the other hand, if an employer’s accident costs are cheaper than those in the same subclass, their assessment tariff may go down.

Yes, you need to register all of your workers for COIDA, whether they work for you full-time or part-time. The Compensation for Occupational Injuries and Diseases Act (COIDA) says that any business with one or more workers must sign up with the Compensation Fund. Casual workers, temporary workers, and contract workers are all included in this group.

How Can We Help You?

We specialise in quickly and easily getting South African businesses their Letter of Good Standing. In fact, in most cases, we aim to get you sorted in as little as 48 hours! Our COIDA team makes sure that your business stays COIDA compliant, even if you’re just starting out.

We also prepared the COIDA Registration Timelines to guide you on the process.

What our clients say:

“The service exceeded my expectations because throughout the whole process, I was guided by a qualified person and they explained everything and all the steps and procedures were well explained - all I wanted was to have a legal and compliant business, and I'm more than happy now that I can proudly and boldly say my business is registered, all this happened in a matter of days! I thought these things take weeks on end, but I was highly surprised as calls and emails came in confirming registrations and a lot of things that were done - in such a short time!” - Queen Mothele from QTM Civils and Projects

Final Thoughts

Business compliance isn’t just a box to be checked in 2025; it’s a way to get ahead of the competition. A legal Letter of Good Standing lets people know that your business is honest, follows the rules, and is ready to do business. It makes it easier to get bids, get money, form relationships, and keep employees safe.

We can help you if you want to get your first COIDA certificate, deal with all the paperwork, request your Letter of Good Standing, and handle the follow-ups.

Contact us! We will handle all the paperwork so you can focus on what you do best running your business!

Contact us today!

Recommended for you

Sign Up to our Newsletter

Cresta Help Chat
Send via WhatsApp