Practice Area

Business Sponsor Licensing Applications

UK Skilled Worker Visa

Business Sponsor Licensing: A Complete Guide for UK Employers

UK-based employers who wish to hire non-UK nationals who do not already have settled status or the right to work must first obtain a sponsor licence from the Home Office. The specific type of licence required depends on the immigration route the overseas worker will be using. It is important to note that, as of 31 December 2020, most EU, EEA, and Swiss nationals are now subject to immigration control and require sponsorship to work in the UK.

What Is a Sponsor Licence?

A sponsor licence is an authorisation granted by the Home Office that permits a UK business to employ workers from outside the UK. This includes not only non-EU nationals but also citizens of the EU, Iceland, Liechtenstein, Norway, and Switzerland who arrived in the UK after the 31 December 2020 deadline.

There are, however, some key exceptions. You do not need a sponsor licence to employ individuals who are:

  • Irish citizens.

  • Those with settled status or pre-settled status under the EU Settlement Scheme.

  • Those who hold indefinite leave to remain.

  • Those who otherwise have a separate immigration permission that allows them to work.

The Application Process: General Requirements

To successfully secure a sponsor licence, you must be able to satisfy the Home Office on several key points. Your business must demonstrate that it is:

  1. A genuine organisation operating lawfully in the UK.

  2. Honest, dependable, and reliable, with no history of activities contrary to the public good.

  3. Capable of fulfilling its full range of sponsor duties and committed to complying with all official sponsor guidance.

To verify these criteria, you will be required to submit a suite of company-related documents. The exact documentation required will depend on the nature of your organisation and the specific sponsorship route you are applying for.

Route-Specific Requirements

Different worker routes have specific requirements that your business must be able to meet:

  • Skilled Worker Route: Your business must be able to demonstrate that it can offer a genuine role that meets the required skill and salary levels, and that there is a direct employer-employee relationship between the company and the sponsored worker.

  • UK Expansion Worker Route: Your business must show it can meet the skill and salary levels for a genuine job and have a qualifying link to an overseas business. In addition, the overseas business must:

    • Not already be trading in the UK.

    • Have a UK presence.

    • Be active and trading overseas for at least three years.

    • Have a credible plan to establish a UK trading presence within two years.

Appointing Key Personnel

Before you can submit a sponsor licence application, you must appoint three essential individuals to manage the licence. These roles must be filled by people who are based in the UK and who have no unspent criminal convictions or adverse immigration history. The key roles are:

  • Authorising Officer: A senior and responsible individual who will have overall accountability for the sponsor licence.

  • Key Contact: The primary point of contact for the Home Office.

  • Level 1 User: The person who will manage the day-to-day activities of the sponsor licence through the Sponsorship Management System (SMS).

Step-by-Step Application Process

The application process involves the following key steps:

  1. Complete the online application form via the Home Office website.

  2. Pay the relevant application fee.

  3. Submit your supporting documents to the Home Office within five working days of submitting your online application.

  4. Provide detailed information about your key personnel and a justification for why you need a sponsor licence.

While you can seek assistance from a legal representative to help with the application, it is the sponsor (your organisation) that must ultimately submit the final application.

Costs, Fees, and Processing Times

  • Application Fees: The fee depends on the size of your organisation. It is £536 for small companies and charities, and £1,476 for medium or large organisations.

  • Processing Time: The standard processing time is up to 8 weeks. A priority service is available for an additional fee of £500, which can reduce the decision time to 10 working days.

Licence Duration, Renewal, and Rating

  • Duration: A standard sponsor licence is valid for 10 years. It must be renewed before it expires.

  • Renewal of UK Expansion Worker Licences: Please note that UK Expansion Worker sponsor licences are typically not renewable. However, businesses on this route may be able to transition their sponsored workers to other visa routes once the UK business is established.

  • Licence Rating: Approved licences are typically awarded an 'A' rating. UK Expansion Worker sponsor licences may initially receive a 'Provisional' rating. Sponsors are responsible for maintaining their rating by using the SMS, reporting significant events (like changes to the company or the sponsored worker's circumstances), and ensuring full compliance with their sponsorship duties. Failure to do so can result in the licence being revoked.

Speak directly with our immigration specialists today to get tailored legal support.

📞 UK Office: +44 7479 492796 | 💬 WhatsApp: +44 7479 492796