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

Here’s your complete 2027 guide, with the processes and tips from Company Partners.

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 2027 guide, with the latest processes and tips from Company Partners.

What is a COIDA Certificate or LOGS?

A LOGS or COIDA Certificate is 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.

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 (LOGS), clients or other businesses may think your business owes the Workman’s Compensation fund money or that your employees aren’t covered by COIDA. They then assume they will not be safeguarded in the case of a work-related accident on their property.

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

Almost every employer (with a few exceptions) 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.

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

How do I get my COIDA Certificate or LOGS?

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

1. 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 for the 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

2. 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.

3. Pay your yearly / monthly fee to COID

In about 3–5 working days after your Return of Earnings 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.

Documents you’ll need

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

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.

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

Read the original Letter of Good Standing guide originally published by Company Partners.