Sponsor Licence

1. What is a UK Sponsor Licence?
2. Why Do Employers Need a Sponsor Licence?
3. Types of Sponsor Licences
4. Eligibility Criteria for a Sponsor Licence
   1. General Business Requirements
   2. Key Personnel Roles
5. Sponsor Licence Application Process
   1. Step 1: Preparing Your Business
   2. Step 2: Collating Required Documents
   3. Step 3: Completing the Application
   4. Step 4: Paying the Fee
   5. Step 5: Submitting Supporting Documents
   6. Step 6: Compliance Visits
   7. Step 7: Receiving a Decision
   8. Contact Us
6. Sponsor Licence Fees and Costs
   1. Sponsor Licence Fee
   2. Additional Sponsorship Costs
   3. Optional Costs
7. Duties and Responsibilities of a Sponsor Licence Holder
   1. Record-Keeping Requirements
   2. Reporting Obligations
   3. Ongoing Compliance
8. Sponsor Licence Compliance and Monitoring
   1. Home Office Compliance Visits
   2. Consequences of Non-Compliance
9. How to Renew or Upgrade a Sponsor Licence
   1. Licence Renewal Process
   2. Upgrading from a B-rating to an A-rating
10. Common Challenges in the Sponsor Licence Process
    1. Common Reasons for Application Rejection
    2. Solutions for Difficult Sponsorship Cases
11. Conclusion: How We Can Help
    1. Contact Us
12. Frequently Asked Questions (FAQs)
13. Visa Glossary
14. Visa Resources

Why Do Employers Need a Sponsor Licence?

The demand for skilled international workers in sectors such as IT, engineering, healthcare, and construction often exceeds the available talent pool within the UK. A sponsor licence allows businesses to fill these skills gaps by hiring non-UK talent. With the ability to sponsor workers under routes like the Skilled Worker Visa, businesses can attract global talent to fill roles that are critical for operational success. Without this licence, businesses may face severe penalties if they employ workers illegally.

Types of Sponsor Licences

The Home Office offers two primary types of sponsor licences based on the type of workers businesses wish to sponsor:

• Worker Sponsor Licence: This covers long-term roles under visa categories like the Skilled Worker or Scale-up Worker visas. Businesses looking to hire for permanent or long-term roles that require skilled expertise should apply for this type.
• Temporary Worker Sponsor Licence: This is designed for short-term employment, including seasonal work, volunteering, and other temporary roles. Common visas in this category include Charity Worker and Seasonal Worker visas.

General Business Requirements

To obtain a UK Sponsor Licence, your business must be able to prove that it is both genuine and financially stable. This includes having a clear presence in the UK with sufficient resources to manage sponsored workers. Additionally, your business must be in good standing with UK employment laws. For example, companies must ensure compliance with minimum wage, working hours, and health and safety regulations. Key documents that demonstrate these requirements include financial statements, tax filings, and proof of active business operations.

Key Personnel Roles

A critical part of your application involves designating key personnel to manage your Sponsorship Management System (SMS). These roles include:

• Authorising Officer: This person is responsible for ensuring that your business complies with sponsorship duties and is usually a senior figure within the organisation.
• Key Contact: This is the main point of communication between your business and the Home Office.
• Level 1 & 2 Users: These individuals manage the day-to-day tasks related to the Sponsorship Management System (SMS), such as issuing Certificates of Sponsorship (CoS) and updating employee details.

Each of these individuals must pass a UKVI background check to ensure they have no unspent criminal convictions, especially those related to immigration offences.

Step 1: Preparing Your Business for the Application

Before starting the application process, it’s crucial that your business prepares thoroughly. This includes appointing key personnel and ensuring your HR systems can handle the responsibilities of managing sponsored workers. Businesses should conduct an internal audit to ensure they can manage visa expirations, employee absences, and compliance with immigration law.

Step 2: Collate Required Documents

The documentation required varies depending on the type of licence and the size of the business. The minimum is typically four documents, but you may need more based on your operations. Commonly requested documents include:

• Company’s certificate of incorporation
• Financial records and tax returns
• Proof of business premises
• VAT registration certificate Gathering these documents in advance will streamline the application process and prevent delays.
• Employer’s lability Insurance

The application is submitted through the Sponsorship Management System (SMS) on the Home Office portal. You will need to provide detailed information about your business, including:

• The visa categories you intend to sponsor
• Information about your key personnel
• Number of Certificates of Sponsorship you need.

Make sure all sections are completed carefully, as mistakes or omissions can result in delays or rejections.

Step 4: Pay the Sponsor Licence Application Fee

The fee depends on the size of your business:

• Small businesses and charities: £536
• Medium or large businesses: £1,476 Choosing the correct fee category is critical to avoid processing delays.

Step 5: Submit Supporting Documents

Your supporting documents must be submitted within five working days of submitting the online application. This must be done by sending an email to (sponsorshipvalidations@homeoffice.gov.uk) with signed submission sheet. Failure to do so may result in the application being delayed or rejected.

Step 6: Prepare for a UKVI Compliance Visit

Most businesses will receive a compliance visit from the Home Office, during which inspectors will verify your HR systems. This visit is to ensure you can meet the requirements for tracking employee visas and report any changes. Businesses must have efficient systems in place for record-keeping and monitoring employee activity.

Step 7: Receive a Decision from the Home Office

The processing time for most sponsor licence applications is up to eight weeks. However, using priority services can reduce this to as little as 10 working days for an additional fee of £500. Once approved, your business will receive a licence, allowing you to issue Certificates of Sponsorship.

Sponsor Licence Application Fees

The application fees vary based on the type of business:

• Small or charitable businesses: £536
• Medium or large businesses: £1,476.

Additional Sponsorship Costs

Besides the application fee, businesses must also budget for:

• Immigration Skills Charge: £364 per year for small businesses and £1,000 per year for large businesses.
• Certificate of Sponsorship (CoS) Fee: £239 for each sponsored worker.

If you need a faster decision on your sponsor licence, the priority service (£500) and super-priority service (£1,000) can expedite the application. There are also costs associated with maintaining a compliant HR system and, potentially, legal fees.

Record-Keeping Requirements

As a licence holder, you must maintain accurate and up-to-date records for each sponsored employee. This includes copies of their passport, visa, employment contract, salary records, right to work checks for both sponsored and non-sponsored employees, attendance, rota, address history and any changes in their employment status. The UKVI may request these documents during audits or compliance checks.

Reporting Obligations

Key reporting duties include notifying the Home Office of any significant changes, such as:

• If a sponsored worker fails to start their job
• If a worker’s contract is terminated
• If the business undergoes significant changes, such as a merger or name change Failure to report within the specified timeframes can lead to severe penalties.

Ongoing Compliance

Maintaining compliance is critical for retaining your sponsor licence. This includes conducting right-to-work checks, monitoring visa expiration dates, and ensuring that employees only perform the job roles specified on their visa.

Home Office Compliance Visits

The Home Office conducts both pre-licence and post-licence compliance visits to ensure businesses are adhering to their sponsorship duties. These visits can be announced or unannounced, so it is essential to maintain compliance at all times. During these visits, the Home Office will assess your HR systems, how you monitor employee compliance, and your record-keeping processes. Being unprepared for these checks can lead to severe consequences.

Consequences of Non-Compliance

Non-compliance can result in a variety of penalties, including a downgrade to a B-rating, suspension, or even revocation of your licence. With a B-rating, you will be unable to sponsor new workers until the issues are resolved and the licence is restored to an A-rating, which often requires completing an action plan provided by the Home Office.

Licence Renewal Process

A Sponsor Licence is valid for ten years. In the light of recent changes the renewal after 4 years has been removed.

Upgrading from a B-rating to an A-rating

If your licence is downgraded to a B-rating, you will be required to follow an action plan to address any issues identified by the Home Office. Once you have successfully met the conditions of the action plan, you can apply for an upgrade back to A-rating, allowing you to resume sponsoring new workers.

Common Reasons for Application Rejection

Common reasons for rejection include incomplete applications, failure to provide sufficient supporting documents, and the presence of unsuitable key personnel. Ensuring that all criteria are met, and that the documentation is accurate, can prevent delays or rejections.

Solutions for Difficult Sponsorship Cases

In complex cases, such as business mergers, ownership changes, or global expansion, the sponsorship process can become more complicated. In these instances, businesses are advised to seek legal assistance to avoid the compliance issues.

Sponsor Licence Official Page – UK Visas and Immigration (UKVI)
Website: https://www.gov.uk/uk-visa-sponsorship-employers

Register of Licensed Sponsors: Workers
Website: https://www.gov.uk/government/publications/register-of-licensed-sponsors-workers

Right to Work Check: Employer Guidance
Website: https://www.gov.uk/check-job-applicant-right-to-work

UK Visas and Immigration (UKVI)
Website: https://www.gov.uk/government/organisations/uk-visas-and-immigration

Visa Processing Times
Website: https://www.gov.uk/visa-processing-times

Approved English Language Tests and Providers
Website: https://www.gov.uk/guidance/prove-your-english-language-abilities-with-a-secure-english-language-test-selt

Immigration Health Surcharge (IHS)
Website: https://www.gov.uk/healthcare-immigration-application

Sponsor a Skilled Worker Guidance
Website: https://www.gov.uk/government/publications/workers-and-temporary-workers-sponsor-a-skilled-worker

Home Office Immigration Rules and Policies
Website: UK Immigration Rules