FAQ’s on COIDA Registration in South Africa
Do you have questions about COIDA Registration in South Africa?
In this article, we will answer the Frequently Asked Questions Entrepreneurs have on COIDA Registration in South Africa.
Don't have time to read? You can also watch the FAQ Video below:
Here follows Questions and Answers to the most popular FAQ’s South African Entrepreneurs have about Registering a Company for COIDA in South Africa. Simply scroll down to the questions that are relevant to you.
What does COID stand for?
COID stands for the Compensation of Injury and Diseases. It is sometimes also referred to as COIDA, where the A stands for the word Act.
Who needs to register for COID?
Every entity who has employees needs to register for COID, as this is a legal requirement.
What do I get after registering for COID?
I do not have any employees; do I have to register for COID?
When you want to apply for tenders or contracts, it will in most cases be a requirement to produce a Letter of Good Standing which can only be obtained by registering for COID.
So in that case, you will need to register yourself as the working director, if you do not have employees yet. Company Partners can facilitate this registration for you.
Can I get a Letter of Good Standing without registering for COID?
As mentioned, you will not be able to receive a Letter of Good Standing without registering for COID, as the COIDA number or CF number is a requirement for you to get the Letter of Good Standing, which shows that you are not in arrears with the Department of Labour.
Are there any hidden fees when it comes to registering for COID?
Yes, you might be required to submit a return of earnings (ROE) for previous years when your company traded before you registered at the Compensation Fund. There might also be unpaid invoices which incurred interest and penalties.
Although not a hidden fee, many clients are caught off guard when they receive the Notice of Assessment, which they need to pay. This is an invoice you receive upon completion of the COIDA registration.
This invoice is based on various areas of your business assessment, such as employees’ salary amounts and the nature of your business.
When do I renew my Letter of Good Standing?
You will need to renew your Letter of Good Standing in April of every year. This means if you receive your Letter of Good Standing in January, you will need to renew it 3 months later in April again.
I have not done any work; do I have to submit my Return of Earnings?
Yes, whether the company is trading or not, you will still need to submit the company’s Return of Earnings to ensure you are compliant when applying for tenders or wanting to claim for any injuries, diseases or deaths that occur in your company.
Only submit for the months that there were earnings paid to employees. Zero earnings cannot be submitted online.
Please note that late submissions will incur extra costs.
