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Get Compliant from Anywhere, Easy and Fast!

0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!

Table of Contents

  • Employer Obligations

Step-by-step Guide to getting a Letter of Good Standing

  • Updated on 11 July, 2025
Read our Step by Step guide on how to get a coida letter of good standing in South Africa.

Do you need a COIDA Letter of Good Standing to apply to Contracts and Tenders, but you’re not sure how, where and why?

A Letter of Good Standing (LOGS), also known as a COIDA Certificate, is essential for South African businesses applying for tenders, contracts, and construction work, but the process can feel overwhelming—especially if it’s your first time. Don’t worry. Here’s your complete 2025 guide, with the latest processes and tips from Company Partners.  In the past 3 months, we have assisted 788 businesses with COID registration and secure their LOGS.

What is a COIDA Certificate or LOGS?

A LOGS or COIDA Certificate is basically an official document that proves the Workman’s Compensation Fund (COID) will assist you in paying for any work-related injuries or harm to your employees, because your payments to the fund are up to date.

Why is a Letter of Good Standing required when applying for most Contracts and Tenders?

A Letter of Good Standing is essentially a form of security to most clients as they want to make sure they’re not responsible for picking up the medical bill or life cover for anyone hired to work on their premises, in the case of work-related accidents or illnesses.

This is especially true when it comes to construction projects where the Principal of the contract can be held responsible if subcontractors don’t have their COIDA compliance in place.

In essence, it confirms that your business is compliant and that your employees are covered in the event of work-related injuries, illness, or death.

If you don’t have a Letter of Good Standing, your business probably owes the Workman’s Compensation fund money and more importantly, it means your employees aren’t covered by COID and your clients are not safeguarded in the case of a work-related accident on their property.

Tip on coida letter of good standing from Department of Labour in SA

Expert Tip: Read more here on how to get Letter of Good Standing in South Africa

What precisely is the Workman’s Compensation Fund (COID) and why do you need to pay them?

Almost every employer (with a few exceptions that you can see by clicking HERE is required by law to register with the Workman’s Compensation Fund (COID). In summary, it includes:

  • Independent contractors and freelancers
  • Directors/Shareholders not drawing a salary
  • Sole proprietors with no employees
  • Foreign employees working abroad (special cases)


However, exemption status must often be formally declared and approved.

This government fund helps employers pay medical bills or compensation, in the case of death, related to an injury on the job to any employee. However, there’s a yearly fee connected to this fund.

To find out more about the COID and why it will benefit your business, click HERE to read our article, What is Workman’s Compensation (COID) and why do you need it?

A Letter of Good Standing proves that you are in good standing with COID, with no outstanding yearly payments.

Without registering with COID or without paying your yearly fees, you’re not eligible for a Letter of Good Standing. In certain industries, this will result in a loss of projects, such as in logistics, construction, security, and others.

Need Assistance with your Letter of Good Standing?

If you’d like a FREE consultation with one of our experts on getting your Letter of Good Standing in order.
Get a FREE Consultation

How do I get my COIDA Certificate or LOGS?

Here’s exactly how the process works in three steps:

Register your Company with COID

The first step in getting your Letter of Good Standing or COIDA Certificate is registering your business with COID. During the process, you will have to pay a registration fee. This is determined based on your annual payroll and the risk category of your nature of business.

You can either register directly with the Labour Department or use our COID service, where our team of Experts will complete the process for you.

Our COID Registration process only takes 1 week (subject to the Department of Labour) whereas working directly through the Labour Department can take up to 3 months or more. Plus, we’ll send you all the forms and the updates straight to your email inbox.

DOCUMENTS YOU’LL NEED AS LETTER OF GOOD STANDING REQUIREMENTS:

  • Valid South African ID
  • Your Company’s Registration Document from CIPC
  • Your Nature of Business (basically what industry you are in)
  • COID Registration Form (W.As.2)
  • Power of Attorney (this is only necessary when using our COID service, to legally permit us to complete the application on your behalf)
  • Proof of Payment for your registration fees

Submit your employee expenses

In this step you have to submit your Company’s total estimated wage and salary expenses for the year (according to financial years) and industry classification (nature of business) in order for the Compensation Fund to calculate the amount payable to them.

They work out your fee as a percentage of your yearly total wage and salary expenses and risk classification. This means you have to submit your wage and salary expenses (in a Return of Earnings (ROE) document) every year.

Expert Tip: The submission deadline is usually 30 April, but check annually for deadline extensions.

Documents required:

  • Return of Earnings form (W.As.8) – for renewals
  • EMP201/EMP501 summaries – for accurate payroll data
  • Proof of prior LOGS (if applicable)

For first-time registrations, the submission document is included in the COID Registration form, as submitted in step one. Renewals, however, require a document called the Return of Earnings (ROE). Find out more about understanding COIDA and ROE submission here.

Once again, you can either work directly through the Department of Labour’s online portal or you can use our streamlined service, avoiding long queues and confusing admin altogether.

Expert Tip: Businesses with no employees or zero payroll must still submit a nil ROE to remain compliant.

Pay your yearly / monthly fee to COID

In about 3-5 working days after your Return of Earning document submission, the Department of Labour will send you a Notice of Assessment (NOA) stating the amount payable to COID. This is calculated in the same method as during registration.

After you’ve paid that amount, you’ll receive a Letter of Good Standing (LOGS) proving your employees are covered for a year.

If you can’t pay the yearly cost in one go, you have a monthly payment option. However, you will still need to put down a 30% deposit. Unfortunately this option also means you’re Letter of Good Standing will only be valid from month to month, upon payment.

Whenever you neglect to pay your account or forget to renew your Letter of Good Standing by the end of April, the Compensation Fund will not cover your employees during that time.

DOCUMENTS YOU’LL NEED:

  • Notice of Assessment (sent to you by the Department of Labour)
  • Proof of Payment for your yearly fees

Expert Tip: Use our Free COIDA ROE Calculator to determines the estimated Assessment Fee / Return of Earnings your business will need to pay.

What If I Miss a Deadline or Get Rejected?

A Letter of Good Standing can be denied or delayed if:

  • You haven’t submitted your ROE,
  • You have outstanding debt with the Compensation Fund,
  • There are errors in your documentation (e.g. incorrect SIC code),
  • Your business is dormant or non-compliant.


The solution? Work with a compliance specialist (like us!) to get back on track quickly and avoid rejection.

Frequently Asked Questions

You must register if you’re trading and may eventually hire employees. Submit a nil return if you have no payroll.

Not necessarily—but if a client or contract stipulates LOGS as a requirement, you will need it regardless.

Yes, but the LOGS will only be valid for the paid-up period (e.g. month to month).

Submit a nil ROE and notify the Compensation Fund. You may still qualify for a LOGS.

Common Mistakes to Avoid

  1. Incorrect Industry Classification Code (SIC). This could impact your premium rate.
  2. Missing ROE Submissions. Even nil submissions are mandatory.
  3. Unpaid Assessments lead to blocked LOGS.
  4. Late Renewals. Many companies only realise this when they urgently need the letter.
  5. Mixing up Employees vs Contractors: Contractors may not fall under COID coverage.

Why Use Company Partners?

We streamline the entire process:

  • Expert assistance with registrations, submissions, and renewals
  • Fast-track Letter of Good Standing
  • Avoid time-consuming errors and rejections
  • Get peace of mind knowing you’re 100% compliant

Book your FREE consultation now, and we’ll help you secure your Letter of Good Standing quickly and easily.

Contact us today!
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