A letter of good standing is issued by the Compensation Fund (Department of Employment and Labour), not by CIPC. It confirms that your business is registered for COIDA, has submitted its annual Return of Earnings (ROE) and has paid its assessment. You apply online on the Fund's employer system once your ROE is submitted and paid.
This guide covers who needs one, how to apply step by step, why applications get stuck, and how to renew.
What a letter of good standing is (and who issues it)
The letter of good standing (often called a "LOGS" or "COIDA letter") is proof that an employer is up to date with the Compensation for Occupational Injuries and Diseases Act (COIDA). COIDA is the workplace injury fund that every employer pays into. If an employee is injured at work, the Fund covers their medical costs and compensation, and the employer is protected from being sued directly.
The letter confirms three things:
The employer is registered with the Compensation Fund.
It has submitted its Return of Earnings for the latest assessment year.
It has paid the assessment the Fund raised on that return.
Common confusion: Many people search for a "CIPC letter of good standing". CIPC doesn't issue one. If you need proof that your company is active on the CIPC register, what you want is a CIPC disclosure certificate. See our guide on how to check if a company is registered with CIPC.
Who needs a letter of good standing?
Contractors and suppliers bidding on tenders. Government departments, municipalities and SOEs routinely ask for a valid letter.
Subcontractors in construction, mining, security and cleaning. Main contractors ask for it because they can be held liable for a subcontractor's COIDA obligations. See subcontractor COIDA liability.
Businesses with corporate clients. Many large companies won't add you as a supplier without one.
Any business that wants cover. Being in good standing is what keeps you protected if a worker is injured.
If you employ even one person, including part-time or domestic staff, you have to register for COIDA. See COIDA registration in South Africa.
How to apply, step by step
Register with the Compensation Fund (once-off). You'll get an employer registration number. Not registered yet? We can do COID registration for you.
Log in to the Fund's online employer system. Employers currently use the Department of Employment and Labour's Compensation Fund online portal (cfonline.labour.gov.za).
Submit your Return of Earnings (ROE). This declares the total wages you paid in the assessment year, plus your estimate for the coming year. The Fund opens an ROE submission window each year. In 2026 the deadline was 30 June 2026.
Pay the assessment. The Fund calculates what you owe based on your earnings and your industry's tariff rate. Our free COIDA ROE calculator gives you an estimate.
Request the letter of good standing on the portal once your payment has been allocated.
Download and check it. Make sure the business name, registration number and expiry date are correct before you submit it with a tender.
Prefer not to deal with the portal? Smartbook can get your letter of good standing for you.
Documents you'll need
Your Compensation Fund employer registration number and portal login
Your total payroll for the assessment year, per employee category. Your EMP501 reconciliation or payroll reports are the best source.
Your estimated earnings for the coming year
Proof of payment of the assessment
Company registration documents and director ID copies (for new registrations or updating details)
Why applications get stuck
Most delays come from one of these:
An outstanding ROE for an earlier year. The Fund looks at your whole history, not just this year. Every missing year has to be submitted first.
An unpaid or partly paid assessment. This includes penalties and interest from late submissions.
Payment not allocated. If you paid with the wrong reference, the Fund may not match the money to your account.
Registration details that don't match. A different company name, address or director details between CIPC and the Fund's records can hold things up.
An inspection or verification request. The Fund may request additional information, especially where declared earnings look low compared with previous years.
Beware of scams. The Department of Employment and Labour has warned about fraudulent letters of good standing being sold online. A fake letter can get a tender disqualified and cause far bigger problems. Only get your letter from the official system, or through a registered practitioner who submits your real ROE.
Validity and renewal
Every letter shows an expiry date. Letters are tied to the annual ROE cycle, so most expire on the same date each year. The previous round of letters expired on 30 April 2026, and the Fund sometimes extends the date when its systems are delayed.
To renew, you simply repeat the cycle: submit the new ROE, pay the new assessment and request a new letter. There's no separate renewal form.
If your letter has already lapsed, read what to do when your letter of good standing has expired. Or we can handle the renewal of your letter of good standing for you.
Stay in good standing all year
The easiest way to never scramble for a letter before a tender deadline is to keep your payroll records clean all year round. Then the ROE takes minutes, not days.
Frequently asked questions
Does CIPC issue a letter of good standing? No. The letter of good standing is issued by the Compensation Fund under COIDA. CIPC issues disclosure certificates, which show whether a company is active on the companies register.
How long does it take to get a letter of good standing? If your registration is in order and your ROE and payment are already processed, the letter can often be issued quickly online. If there are missing years or unallocated payments, it can take weeks to sort out.
How long is a letter of good standing valid? Until the expiry date printed on it. That date is linked to the annual ROE cycle, so you'll need a new letter each year.
I don't have employees. Do I need one? If you have no employees, you generally don't have to register for COIDA. Some tender documents still ask for proof, so check the tender requirements and speak to us about your situation.
What happens if I submit my ROE late? The Fund can charge penalties and interest, and you won't get a letter of good standing until the return is submitted and everything owed is paid.