What is a Sponsor Licence, and do you need one?
A sponsor licence empowers employers to issue certificates of sponsorship to skilled workers from outside the UK. A sponsorship licence is crucial for enabling international employees to work legally within your organization.
By enabling UK businesses to recruit skilled workers and workers in areas of identified labour shortage, a sponsor licence allows a business to maintain business continuity when unable to recruit from the resident labour market.
Why use a solicitor for this application?
Navigate the complexities of the sponsorship visa UK process with RLegal Solicitors. Secure your sponsor licence UK to access a broader talent pool and elevate your business to new heights.
Who needs a sponsor licence?
UK organisations who wish to employ skilled workers from outside the UK or Ireland, who do not possess indefinite leave or pre-settled status under the EU Settlement Scheme, must obtain a sponsor licence. This obligation is consistent across all organisations, irrespective of their size or the number of foreign employees they intend to hire.
The Home Office can fine an employer found to be employing a foreign worker without permission up to £45,000 per employee (£60,000 for repeat breaches).
Sponsor licence requirements
The Home Office evaluates your Sponsor Licence Application based on several criteria.
You must establish that you are a genuine organization, such as a limited or public company, a limited-liability partnership, or sole trader.
The business must be active and trading in the UK, requiring tax compliance and insurance coverage.
Key personnel listed on the sponsorship licence must exhibit honesty and integrity, with no history of immigration violations.
Demonstrating comprehensive understanding of the sponsorship licence and its obligations is crucial.
You must appoint staff to key roles:
➜ Authorising Officer (the person with overall responsibility for the licence and compliance);
➜ Key Contact (the person the Home Office will communicate with); and
➜ Level 1 User (the person that carries out the day to day activities on the licence).
Additionally, implementing effective HR systems is necessary to monitor and track migrant worker activities efficiently.
Lastly, ensure the job vacancy is genuine, meets the appropriate skills level, and offers a salary compliant with UK sponsor visa requirements.
Types of Sponsorship Licence
There are different types of UK sponsorship licence available:
- Skilled Worker
- Global Business Mobility (Senior or Specialist Worker visa) – for international companies wishing to transfer senior or specialist workers to the UK
- Global Business Mobility (Graduate trainee visa) – for companies transferring overseas employees to the UK as part of a graduate training programme
- Global Business Mobility (Secondment visa) – for overseas employees sent to the UK for secondment
- Global Business Mobility (UK Expansion Worker) – for overseas company looking to establish a first presence in the UK
Apply for a sponsor licence
To obtain a Sponsorship Licence, an employer must complete an on-line application process and submit documents to the Home Office within a strict schedule to demonstrate the company is an active trading entity.
✔️ Login to the sponsor licence application portal and complete the online form.
✔️ Pay the relevant the sponsor licence application fee.
✔️ Submit an Authorising Officer’s declaration with supporting documentation within 5 working days.
The documents to be provided depend on the type of licence applied for, the organisation applying, and the employees (or prospective employees) it would like to sponsor.
The process involves proving the employer’s financial standing, robust HR systems, and your capability to responsibly sponsor international talent.
Amongst other things, employers requesting a Global Business Mobility tier to their licence must prove the common ownership of the companies in question.
It normally takes around six weeks for a Sponsorship Licence to be issued. An expedited service is available which can reduce the processing time to as little as two weeks.
Once granted, Sponsorship Licences are issued for 10 years.
Sponsor Licences granted before 6 April 2024 are automatically renewed for a period of 10 years.
We strongly recommend any company planning on applying for a Sponsorship Licence or sponsoring an employee to take legal advice from an immigration lawyer before doing so.
Documents needed for a sponsor licence
The documents needed for a sponsor licence application can be found listed in “Sponsor guidance appendix A: supporting documents for sponsor applications”.
The appendix provides comprehensive guidance on the necessary documents for UK sponsor licence applications.
Applicants must typically submit a minimum of four separate items of evidence, however, it is usually best to supply further evidence wherever possible.
Exceptions exist for public bodies recognised by the UK Government, such as local authorities or companies listed on the London Stock Exchange that are permitted to produce fewer.
The required documents vary based on your business and the type of licence needed.
Examples of evidence that you might produce for a sponsorship licence include:
- annual accounts;
- evidence of a corporate bank account;
- VAT registration;
- HMRC registration for PAYE/NI – this must be issued by HMRC with your employer or PAYE reference number
- and accounts office reference number;
- employer’s liability insurance certificate (providing a minimum cover of £5 million and issued by a FCA regulated insurer;
- proof of ownership or lease of business premises – if a lease agreement, it must be signed by all parties; evidence of local authority planning permission or similar for the type or class of business;
- evidence of any mandatory or non-mandatory registration or accreditation with a professional or accreditation body;
- proof of registration with HMRC for the payment of Corporation Tax , e.g. Company Tax Return (CT620), or the completed CT600 tax return and CT603 notice;
- contracts for goods or services; franchise agreement;
- premises licences; and
- organisational charts.
This list is illustrative and not exhaustive. Ensure you understand the sponsor licence application process and seek specialist advice.
Genuine vacancy requirement
UK employers applying for a sponsor licence must demonstrate a genuine need to recruit overseas talent. The process involves passing the genuineness test, which confirms the business has a genuine vacancy, in a role that is eligible for sponsorship while meeting specific skill and salary criteria.
The Home Office may conduct a sponsor licence check to ensure the role aligns with the business’ nature and requirements. Meeting the genuineness test is crucial both during the application process and throughout the duration of the sponsor licence.
Employers should outline the roles they seek to fill and details of prospective candidates, if identified. While not mandatory, providing comprehensive recruitment details can enhance the application.
Sponsor licence compliance visits
In certain situations, the Home Office may require additional assurance before granting a sponsorship licence. If the supplied documentation and information are insufficient, they may conduct a pre-licence assessment visit.
During this visit, officers will evaluate whether the applicant has the necessary HR systems to meet sponsorship obligations. They will also assess if the company’s nature and size align with the number of migrants they intend to sponsor.
Additionally, it is standard procedure to verify that an employer can genuinely offer sponsored employment at the specified skill and pay levels.
The Home Office can audit an employer’s files at any time during the life of the licence to ensure the appropriate steps have been undertaken to comply with the Sponsorship Licence requirements.
A decision maker can refuse an application under the Skilled worker route where there are ‘reasonable grounds to believe’ that the job on offer:
- is not genuine;
- has been exaggerated to satisfy the skilled worker threshold;
- has been tailored to exclude resident workers; or
- the applicant is not qualified to undertake the job.
Ensure compliance and unlock global talent potential for your business. Get started with RLegal today and stay ahead in securing top international talent!
Sponsor licence costs
| Licence Type | Fee for small or charitable sponsors | Fee for medium or large sponsors |
|---|---|---|
| Worker | £574 | £ 1,579 |
| Temporary Worker | £574 | £574 |
| Worker & Temporary Worker | £574 | £ 1,579 |
| Adding a Worker licence to an existing Temporary Worker licence | No fee | £1,005 |
| Adding a Temporary Worker licence to an existing Worker licence | No fee | No fee |
To be classed as a small or charitable sponsor, your business must meet at least two of the following criteria:
- your annual turnover is £15 million or less
- your total assets are worth £7.5 million or less
- you have 50 employees or fewer
What if the sponsor licence application is refused?
A sponsor licence may be refused for various reasons, including:
- sending incorrect or inadequate evidence;
- not responding to a request from the Home Office within the strict time deadlines;
- doubts about the authenticity of the application or whether the vacancy is genuine; or
- providing inaccurate or false information.
If your sponsorship licence application is refused, you may be subject to a cooling-off period before you can reapply, depending on the reason for refusal.
Choose RLegal Solicitors
RLegal is a boutique firm of specialist immigration solicitors based in central London. Our client base is global: we have assisted organisations ranging from small start-ups to multi-nationals across a broad range of industry sectors, including construction, hospitality, education, healthcare, IT, banking and sports.
We can bring our extensive experience to your application for a Sponsorship Licence to sponsor workers to the UK.
RLegal is a recommended immigration firm of solicitors by the Legal 500 in both the business and personal immigration categories.