Everything You Need to Know to Apply for a Sponsor Licence in the UK

Table of Contents

A Sponsor Licence allows UK employers to legally hire foreign nationals who meet specific eligibility requirements. The licence is essential for employing workers from outside the UK, such as those needing Skilled Worker visas. Once approved, employers can issue Certificates of Sponsorship (CoS) to foreign employees, who then use the CoS to apply for work visas.

UK businesses need a Sponsor Licence if they want to employ foreign nationals in roles that require a Skilled Worker Visa or other work-related visas. This includes:

Skilled Worker Visa: For skilled employees, replacing the previous Tier 2 (General) visa.
Intra-Company Transfer Visa: For multinational companies transferring employees to a UK branch.
Temporary Worker Visas: For specific temporary roles, including youth mobility, sportspeople, and seasonal workers.

To qualify for a Sponsor Licence, an employer must meet specific criteria:

Legitimate Business: Proof that the business is operating legally in the UK.
Human Resources Compliance: Systems for monitoring employee activity, updating records, and keeping compliant with UKVI (UK Visas and Immigration) regulations.
No Unspent Criminal Convictions: Directors or key personnel must not have unspent convictions related to immigration offenses or other serious crimes.
Proof of Genuine Need: Evidence that there is a need to hire foreign workers for specific roles that cannot easily be filled by local workers.

Depending on your business structure, you may need to provide several documents. Required documents typically include:

Proof of Business Registration: Certificate of incorporation, VAT registration certificate, or recent bank statements.
Proof of Business Premises: Lease or ownership documents for the premises.
Employer Liability Insurance: Proof of insurance coverage.
Financial Records: Recent bank statements, tax documents, or audited accounts.
Detailed Job Descriptions: For roles you intend to fill, outlining required skills, duties, and salary.

Once approved, the Home Office assigns your business one of two licence ratings:

A-Rating: This is the standard rating for fully compliant businesses.
B-Rating: Assigned if compliance standards are not met. B-rated businesses may still hire foreign workers but are subject to compliance action plans and frequent checks.

Step 1: Complete the Online Application

Start your application on the UK Visas and Immigration (UKVI) website. The application requires details about your business, job positions, and the foreign employees you intend to hire.

Step 2: Pay the Application Fee

Fees vary by business size and type:

Small or Charitable Organisations: £536
Medium or Large Organisations: £1,476

Step 3: Submit Supporting Documents

Upload or mail the required supporting documents to the Home Office. Ensure accuracy and completeness, as missing or incorrect documents can delay the process.

Step 4: Receive a Decision

The standard processing time is 8 weeks. The Home Office may conduct a site visit to assess your business’s HR practices and confirm compliance with sponsor obligations.

Expense	Cost (GBP)
Sponsor Licence Fee	£536 – £1,476
Certificate of Sponsorship (CoS)	£199 per certificate
Immigration Skills Charge	£364 per year (small organizations) / £1,000 per year (large organizations)

Additional fees may apply for priority processing services.

Being a sponsor licence holder comes with ongoing responsibilities:

Record-Keeping: Maintain records of all sponsored employees, including personal information and job details.
Reporting: Notify the Home Office within 10 working days of significant changes, such as employee termination, change of job role, or immigration status updates.
Compliance: Ensure that your HR processes meet Home Office standards and that employees are working legally in the UK.

Failure to comply may lead to fines, licence suspension, or downgrading.

A Sponsor Licence is valid for 4 years and can be renewed before expiration. Renewal requires an online application, supporting documentation, and compliance with all sponsor duties. UKVI may conduct compliance audits before renewing the licence.

10. Frequently Asked Questions

How long does it take to get a sponsor licence?
Processing typically takes 8 weeks, but it may be faster with priority processing.
Can I apply for a licence if I have no employees yet?
Yes, but you must demonstrate a genuine need to hire foreign nationals for specific roles.
What happens if my sponsor licence is downgraded?
A B-rating requires corrective action. You must follow an action plan to restore A-rating status or risk licence suspension.
How many Certificates of Sponsorship can I issue?
Your initial allocation is determined by UKVI. You can request more if needed by applying through the Sponsor Management System (SMS).
Can my licence be revoked?
Yes, if you fail to meet compliance obligations, the Home Office can revoke or suspend your licence.

11. Conclusion

Obtaining a Sponsor Licence allows UK employers to legally hire skilled foreign workers and expand their talent pool. By following the application process, understanding sponsor responsibilities, and maintaining compliance, employers can meet the requirements for this licence. With the ability to hire and retain international talent, a sponsor licence can be a significant advantage for businesses operating in the UK.