Sponsor Licence Application

Understanding the UK Sponsor Licence

UK employers need to complete a sponsor licence application if they want to employ skilled workers from overseas. The type of job the organisation is hiring for will determine which sponsor licence the employer needs to apply for. Typically, sponsor licences fall under two categories:

• Worker Licence
• Temporary Worker Licence.

An employer can choose to apply for one or both licences depending on the business’ recruitment needs.

Organisations will need to fulfil a number of sponsor duties and compliance as the employer of a foreign worker, both before and during the employment.

If the employer’s sponsor licence application is accepted, the employer must assign a Certificate of Sponsorship to each foreign worker.

As part of the application process, you will be required to prove that you are a legitimate business which needs the use of migrant talent. To make sure that your application is successful, you can seek the assistance of IAS. Call us on +44 (0)333 414 9244 to speak with our team.

Eligibility Requirements for Sponsor Licence

To be eligible for a sponsor licence, an employer must:

• Be a UK business
• Be a genuine business, lawfully operating and trading in the UK as a business, organisation or sole trader
• Operate an effective HR system, managed by senior ‘dependable’ members of the company
• Have no history of failing to carry out sponsorship duties or having your licence revoked
• Have no history of unspent criminal convictions among key business personnel, for crimes such as fraud, tax evasion or money laundering
• Your company or any of its key personnel cannot pose any sort of threat to UK immigration control and there must be no evidence of this (for example, if any staff member has a history of immigration violations)

Business Suitability for Sponsor Licence

Business suitability is determined by how well a business is prepared for a sponsor licence application. To make an application for a Sponsor Licence, you need to meet the requirements for sponsorship as an employer. In order to apply, a business should be able to:

• Provide detailed information on the organisation
• Nominate at least three members of your staff to fulfil the roles laid out on the Sponsor Management System (SMS)
• Keep up-to-date and organised HR systems and records
• Produce all the documents required for your Sponsor Licence application
• Pay for all sponsorship fees, including associated costs like managing HR systems, salaries and supporting employees
• Comply with UK immigration and UK employment laws on working rights and conditions, as well as all GDPR and non-discrimination acts
• Be ready for announced or unannounced UKVI compliance visits

Sponsor Licence Duties

There are many responsibilities which an employer of an overseas worker needs to fulfil, both before and during the employment.

You must decide which company member(s) will be representing the company. Individuals appointed to manage the sponsorship process must be executive or senior members of the company. Shareholders are not prohibited from these roles, but they must not have a majority shareholding.

As an employer, you must:

• Ensure the business remains fully compliant with UK immigration law, employment law, and is prepared for any UKVI compliance visits whether announced or unannounced
• Manage the companies sponsor licence and HR systems
• Ensure that your foreign workers have the necessary skills and qualifications for the role, with documents to prove this
• Only assign Certificates of Sponsorship to workers when the job is suitable for sponsorship
• Inform the UKVI if your employee is not complying with the conditions and terms of the visa
• Ensure sponsored workers meet visa criteria
• Conduct right-to-work checks
• Store relevant recruitment documents and reporting specific events to the Home Office.
• Maintain all overseas employee records, confidentially

What are the Sponsorship Management Roles?

You will need to appoint people within your business to manage the sponsorship process when you apply for a licence. The sponsor licence operations will be conducted via the sponsorship management system (SMS).

The specific roles within the Sponsor Management System (SMS) are:

• Authorising Officer: A senior and competent individual responsible for ensuring compliance with sponsorship duties.
• Key Contact: The main liaison between the organisation and UK Visas and Immigration (UKVI).
• Level 1 User: Handles daily tasks within the SMS and can assign Certificates of Sponsorship (CoS).
• Level 2 User: Has limited permissions, usually for administrative tasks.

These roles can be carried out by just one person if necessary. At least one level 1 user must be an employee of the company. However, other level 1 and level 2 users can be employed from third-party organisations.

Every person who works within the sponsorship process will need to undergo certain checks, which will include an analysis of any unspent criminal convictions and whether the person has been reported to UKVI.

How to Apply for Sponsor Licence?

There are several Sponsorship Licence requirements that you need to meet if you are an employer looking to find out how to apply for a Sponsor Licence and hire foreign workers.

How to get a Sponsor Licence for your business:

• Check that your business is eligible: to be eligible staff members must not have any history of immigration offences, crimes or past failure to meet sponsorship duties
• Decide the type of licence you require: this is determined by the type of worker you want to sponsor (this includes skilled workers & religious workers and temporary workers in creative, sport, youth mobility and governmental exchange)
• Nominate the employees that will be responsible for managing your business’ sponsorship: these can’t be shareholders and they must be senior members of the company. You will need to choose at least two members to use the Sponsorship Management System (SMS)
• Apply online and pay the Home Office fee: this varies depending on the type of visa you want to sponsor and the size of your business — £574– £1,579 for Skilled Worker only, £574 for Temporary Worker only, and £574 – £1,579 for both.

How much does a sponsor licence application cost?

The employer will need to complete the Appendix A sponsor licence form for a sponsor licence application.

The sponsor licence fee depends on the size of the organisation, as set out in the table below.

Documents Needed to Apply for Sponsor Licence

Different supporting evidence is required, depending on the nature and activities of your business, as well as the vacancy you are filling. Most applicants must provide at least four documents, including any mandatory ones. If your organisation is in Table 1, fewer documents may be required.

Government Apendix A Sponsor Guidance suggests to start with Table 1, move to Table 2 for mandatory documents for specific types of organisations. Then, check Table 3 for documents required by your sponsorship route. After that, use Table 4 to add further supporting documents to meet the minimum of four.

Table 1: Specific Bodies and Organisations

• Details of parent organisation, hierarchy, etc., e.g., congregation size, clergy count, meeting places, and worship schedule for Religious Worker Sponsorship, if applicable.

Table 2: Start-ups, Franchises, Charities, and Regulated Organisations

• Submit the franchise agreement, if applicable.
• Documented proof of business registration with HMRC.
• Proof of connection through ownership, control, or joint venture.

Table 3: Route-Specific Documents

• Endorsement from a governing body (e.g., for Skilled Worker or Temporary Worker Visa applicants in relevant fields).
• Documentation supporting your employee training and development program such as a graduate training program

Table 4: Other Supporting Documents

Other supporting documents, can include the following:

All documentation needs to be provided within five working days of the online application. The documents should be in their original form. However, the Home Office might accept certified documents. Please note you may be required to provide more documents at the request of the Home Office.

The list above is a guide. To understand the best documents to include for your specific sponsorship licence application, you can talk to an expert lawyer.

Certificate of Sponsorship (CoS)

A sponsor licence number is a unique ID on a Certificate of Sponsorship (CoS), a digital document with job details for overseas workers applying for a work visa. To get a CoS, someone in your organisation applies via the Sponsorship Management System (SMS). Once approved (typically taking one day to be approved, but processing times for CoS may differ), the CoS is issued to the worker, confirming their job offer and allowing them to apply for a work visa. There are specific documents you need to apply for a Certificate of Sponsorship.

There are two certificate of sponsorship types: 

• Defined CoS: Required for Skilled Worker visa applicants applying from outside the UK. Employers must request and receive approval before assigning it.

• Undefined CoS: Used for Skilled Worker applicants applying from inside the UK and for all other sponsorship routes. Employers receive an annual allocation and do not need separate approval for each assignment.

What is the Sponsor Licence rating?

If your application is approved, your business will receive an A-rated licence and will be listed in the register of sponsors.

If you do not meet your duties as a sponsor, your licence could be downgraded to a B rating. In this situation, the UKVI will provide you with an action plan which you will need to follow to upgrade your licence back to an A-rating.

You will not be able to issue new certificates of sponsorship until you prove that you have made improvements and upgraded back to the A-rating.

Sponsor Licence Audit

For companies with a Points-based System (PBS) Sponsor Licence, sponsor licence compliance and audits are crucial, as the Home Office may conduct visits to ensure adherence to immigration control. Failure to maintain proper procedures could lead to licence revocation and visa issues. To secure and maintain an A-rated sponsor licence, it’s essential to excel in areas such as monitoring immigration status, record-keeping, and recruitment practices.

Your business must ensure compliance by keeping filings up to date, organising HR files, creating checklists, ensuring easy access to records, implementing systems for training and file improvements, and conducting mock audits and staff appraisals.

Sponsor Licence Renewal

Sponsor licences no longer require renewal. If your sponsor licence is due for renewal, it will be automatically renewed indefinitely. You must however, ensure ongoing compliance with sponsorship duties or your sponsor licence can be revoked.

Sponsor licence application refused

It can be a frustrating experience to have a sponsor licence application refused. The most common reasons why an application might be refused include the following reasons:

• Inaccurate or misleading documents
• Incomplete application
• The company has had a previous sponsor licence revoked
• The company has failed to furnish additional requested information within the given time limit

Companies are advised to avoid having their sponsor licence application refused wherever possible because the application fee is not refunded and companies are unable to re-apply until a cooling-down period has passed.

The length of time will depend on why the application was refused. Most companies will be unable to reapply until at least six months from the date of the refusal letter.

If your sponsor licence application is rejected, you do not have the right to appeal the decision. You may be able to request an administrative review of the decision, but this does not guarantee that the decision will be reversed.

The best way to prevent a rejection is to work with a qualified immigration solicitor to submit the strongest possible application and, in so doing, ensure that you can save time and money.

As a business, you are also entitled to withdraw your sponsor licence application.

Why Choose IAS

IAS is an award-winning immigration law firm specialising in corporate immigration law. We can help you in all stages of employing overseas talent, ensuring you employ, manage and retain foreign workers, legally.

Our experienced corporate team can ensure your business remains compliant with ever-changing sponsor licencing requirements, management, maintenance and more. We help take the stress out of sponsor licence training, and stop the paperwork headaches every time you hire from overseas.

We offer singular or comprehensive sponsor licence services including:

• Sponsor Licence Applications
• Sponsor Licence Management & Maintenance
• HR Systems Training
• Skilled Worker Visa Training
• Worker Visa Applications
• Issuing Certificates of Sponsorship
• Home Office Audit Preparation
• Corporate Immigration Compliance

We can also help you with:

• Corporate Immigration Strategy
• Business Mobility & Business Travel
• Legal Assistance
• Employee Relocation Assistance
• Business & Founder Visas

No matter what you require, IAS serves all your corporate sponsor licence and immigration needs. Get in touch for assistance from qualified, certified and experienced lawyers. Contact our offices in London, Manchester, or Birmingham, or use our office finder to find your closest branch.