Letter of Good Standing

There are various types for letters of good standing. You can have tender, foreign investment, tax clearance letter of good standing, COIDA letter of good standing and emigration. When starting a new company or even trading, various departments may ask you for the above documents. You will need to apply for them but need to know what the difference is between them. Many entities will simply ask you for a letter of good standing but don’t inform you of which one you need; this does cause a lot of confusion.

You will need to make sure that you are applying for the correct type of letter of good standing for your specific needs. Fast Biz Reg does assist with the letter of good standing for the Tax clearance and COIDA applications. Fast Biz Reg can register the company for COIDA, once the financials are filed you will receive the letter of good standing for this, you do not receive it automatically with the registration.

What is the letter of good standing for COIDA used for?
Once you have registered for Compensation for Occupational Injuries and Diseases, you will first need to submit all the financials and returns to the department of labor. Once this is in order, you will receive the letter of good standing. The letter means that the employer or business owner or director or member or shareholder is registered for compensation for occupational injuries and diseases. If there are one or more workers employed by a company, it is compulsory to register for COID. The letter of good standing indicates that all staff members are protected; a lot of other entities may request this, especially if you are applying for a tender.

What is a COIDA letter of good standing?
COIDA is Compensation for Occupational Injuries and Diseases. This is registered by the department of labour. Compensation for Occupational Injuries and Diseases is used to protect employees when they are injured on duty. This could also include if an employee is injured on the premises. There are cases in specific industries that the employee will only be protected on site, as soon as they walk off the premises or site they are not protected.

Certain jobs fall into certain categories. If you are working on the road and moving around, the staff will need to be protected everywhere, not just on the premises. If you are in the construction industry, you only really need to protect your workers on site or in the office. They will not be covered if they are injured and it is not directly relating to the business or company.