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What is a Sponsor Licence in the UK?
A Sponsor Licence allows your UK-registered company to hire foreign workers, especially if it’s a role not many local candidates can fill. The Home Office issues this licence and expects you to maintain ongoing compliance.
Under UK immigration laws, businesses must meet strict requirements when applying for a Sponsor Licence to hire overseas workers. A Sponsor Licence is essential for employers to issue Certificates of Sponsorship needed for Skilled Worker visas.
Consider it a ticket to accessing global talent. It gives you an opportunity to sponsor/employ overseas workers under the skilled and temporary worker routes, tapping into fresh ideas and expertise your business needs to thrive in today’s competitive market.
Who Needs to Apply for a Sponsor Licence?
If you plan to hire employees from outside the UK, you need a Sponsor Licence, even if it’s just for a short-term job or an internship. It’s illegal to hire from overseas without a licence. Otherwise, you may face hefty fines, reputational damage, or criminal prosecution.
Even if you don’t think about hiring foreign employees now, securing your Sponsor Licence earlier will give you the competitive edge over other employers who avoid the extra Sponsorship work. It’s for you if you want to immediately seize opportunities as they arise and tap into the global talent pool anytime needed.
Sponsor Licence compliance may be a headache, but it’s worth the effort mastering how to navigate it. Being a compliant sponsor can position your business as an international employer of choice, attracting high-caliber, globally minded candidates.
Types of Sponsor Licences
There are two types of Sponsor Licence. Here’s how to choose the right one:
Worker Licence
You need a worker licence if you’re looking for long-term or permanent employees. This is used for hiring professionals such as skilled IT employees, engineers, or healthcare workers.
Temporary Worker Licence
This one is for short-term or seasonal jobs: your option if you’re hiring charity workers, creatives, religious personnel, and interns under government-authorised schemes.
You can apply for both licences if you want flexibility with hiring permanent and temporary staff from overseas.
Eligibility & Suitability Requirements for a Sponsorship Licence
Regardless of your company size, you can apply for a Sponsor Licence, but you need to check first if you are ‘eligible’ and deemed ‘suitable’ for it.
Eligibility: Can You Apply for a Sponsor Licence?
See if you meet these eligibility criteria:
- You have a genuine business (registered and operating legally in the UK).
- You have no history of immigration offences.
- You offer genuine employment (e.g., meeting salary thresholds).
Suitability: Will You Be Approved for a Sponsor Licence?
When you meet all the above, here’s how you can initially determine if your licence application has a higher chance for approval:
- You already have a reliable system to manage sponsorship duties (e.g., tracking employees, reporting changes).
- Your key personnels are honest and capable (e.g., the authorising officer has clean records and is based in the UK).
- You agree to follow UKVI rules (including cooperation with inspections, audits, and record-keeping).
Let’s move to the next steps.
Step-by-Step Sponsor Licence Application Process
Here’s the official UK gov application page.
Getting an A-rated Sponsor Licence means you can now issue a Certificate of Sponsorship (CoS) and legally hire overseas employees.
Supporting Documents Required for a Sponsorship Licence
Now, let’s see which documents prove Home Office your business’ legitimacy. You need to provide at least 4 supporting documents of the following:
- Business bank statements: To disclose financial activity and stability.
- Employer’s liability insurance certificate: Must be at least £5 million.
- Proof of business registration: Documents such as your Companies House registration or HMRC registration for self-employed businesses.
- VAT registration certificate: If your business is VAT registered.
- Recent corporate bank account letter: Confirming your business has a UK-based account.
- Lease or ownership documents for your business premises: To prove your physical presence in the UK.
- Proof of PAYE and Accounts Office Reference Numbers: Showing you’re registered to pay tax for employees.
Tip: The UKVI may need additional documents depending on your industry. You can check the latest guidance directly from the UK government website.
Final Checklist Before You Submit Your Application
- Your UK business should be registered & actively operational
- Choose the right licence type: Worker, Temporary Worker, or both
- Choose who will handle sponsorship tasks
- Fill out the application carefully with up-to-date information
- Pay the application fee based on your business size
- Get your HR system ready to keep track of sponsored workers
- Set up a clear process to report changes to the Home Office
- Train your team about their sponsorship responsibilities
- Check all your documents one last time for any mistakes or missing info
- Confirm contact details for the people managing the licence are correct
- Know your ongoing duties once your licence is granted
Sponsor Licence Application Fees and Processing Time
As of April 2025, Sponsor Licence fees are as follows:
| Licence Type | Organisation Type/Size | Fee |
|---|---|---|
Worker Licence |
Small/Charitable Sponsor |
£574 |
Worker Licence |
Medium/Large Sponsor |
£1,579 |
Temporary Worker Licence |
All Sponsors |
£574 |
An organisation is considered a small or charitable sponsor if it meets at least two of these criteria:
- Turnover ≤ £15 m
- Assets ≤ £7.5 m
- ≤ 50 employees
Processing Time
Standard Service: You may receive a decision usually within 8 weeks. Compliance visits may add up to ~12 weeks in complex cases
Priority Service
For an extra £500, applicants can receive a decision in 10 working days, subject to slot availability. Slots are limited and allocated on a first-come, first-served basis. You may request the priority status via the application portal before review begins.
Additional Costs
Certificate of Sponsorship (CoS) fees
- Worker routes: £525 per CoS
- Temporary Worker routes: £55 per CoS
(Note: variant lower fee applies for International Sportsperson up to 12 months)
Immigration Skills Charge (Skilled Worker visas) per worker per year:
- Small/charity sponsor: £364 for the first 12 months, plus £182 per additional 6 months
- Medium/large sponsor: £1,000 for first 12 months, plus £500 per extra 6 months
Premium Sponsor Service (optional, includes dedicated support):
- Small sponsors: £8,000/year
- Large sponsors: £25,000/year
Important! It’s also worth pointing out that from 31 December 2024, it’s an offence to charge a foreign employee with their share of the Sponsor Licence fees, including admin and CoS costs. Doing so is grounds for licence revocation.
This is to make sure employers don’t exploit their overseas workers in the sponsorship process. The employee, however, is still responsible for paying their own visa application fees and the Immigration Health Surcharge (IHS).
Real Reddit Query: Sponsorship in a Year
Many employers wonder if it’s possible for them to obtain a Sponsor Licence in time to hire a specific candidate. As one Reddit user asked a few years back:
“I am currently on a grad route visa, working for a organisation without a sponsorship license. they would like to sponsor me after my current visa expires, but i am unsure how easy the process will be for them in terms of cost and timelines.. is it realistic to expect that they will be able to sponsor me in a year’s time?”
Note: This information comes from a real person on Reddit. It shows their experience and is not official advice.
The Reddit user was on a Graduate Route and wanted to know if their company can get their licence quickly, preferably before their current visa expires.
To answer the question, if the company meets all the criteria and is serious about the process, then yes, it’s possible. The licence application can take up to 8 weeks (or faster with priority service), but the real challenge is preparing their internal systems to meet compliance duties.
If they start now and stay on track, there’s a good chance they’ll be ready to sponsor the user by the time their current visa ends.
Need help with the sponsorship process? Contact Legend Consults for a successful Sponsor Licence application.
What to Expect After Applying & Tracking Progress
After submitting your application, here’s what you can expect, and how you can monitor its progress.
- The UK Home Office reviews and ensures your form and documents are complete and correct.
- They may visit your business premises to verify that your company is genuine and ready to sponsor workers.
- It usually takes up to 8 weeks to get a decision. You can pay extra for a faster priority service (about 10 working days).
If approved, you’ll receive an A-rated licence, which officially means you’re now allowed to sponsor overseas workers. If refused, they’ll explain why, and you may be able to appeal or reapply. Once licensed, you can start assigning Certificates of Sponsorship (CoS) and follow your sponsor duties.
Sponsorship Licence Tracking
Is there a way to track Sponsor Licence application after submitting it? Here’s a real-time Reddit user situation:
“I submitted my company’s sponsor licence application last week, and am wondering if there’s any way to gain insight into where the process stands between now and the time I receive a decision from the home office. The portal doesn’t seem to indicate anything, and when I called the business helpline they said that I’d only hear from the Home Office before the decision if they were missing anything from my submission or had further questions for me.”
Reddit Source: — u/learningtoexcel on r/ukvisa
Note: This information comes from a real person on Reddit. It shows their experience and is not official advice.
Unfortunately, the Home Office doesn’t offer a live tracking system for Sponsor Licence applications, or at least not yet. After submitting your documents, the best you can do is just wait for their updates, which may just be 10 working days if you opted for priority service, or up to 8 weeks on normal basis.
Sponsorship Duties and Ongoing Compliance
Once you get a Sponsor Licence, your responsibilities don’t stop there. It takes continuous efforts to maintain your licence, especially ensuring that each of your sponsored workers is compliant with the UK immigration laws.
Failure to meet all compliance requirements may lead to fines, licence suspension, or revocation by the Home Office.
As per UKVI, you must be compliant with the following duties:
Record-keeping:
For each sponsored worker, you need to keep updated records for:
- Passport copies and related documents
- Contact details
- Employment contracts
- Job descriptions
Reporting duties:
You must report important events to the Home Office within 10 working days, such as:
- If a sponsored worker is absent from work
- If you’ve changed their job titles, salaries, or duties
- If a worker’s contract ends early or they leave the job
Monitoring duties:
You need to track your sponsored workers’:
- Days on work (attendance and absences)
- Immigration status
- Visa expiry dates
- Visa Compliance
Cooperation with UKVI:
You must:
- Allow unexpected visits or audits by the UKVI
- Respond to any UKVI requests for information
- Show that you’re fulfilling your sponsorship responsibilities with due diligence
How to Prepare Your HR and Compliance Systems
You will also need to prepare your HR and compliance systems to stay on track. Here’s how:
- Assign clear roles to your key personnel.
- Use a centralised system to store up-to-date copies of passports, BRPs, CoS records, right-to-work checks, and contract details. This also helps you promptly report any changes to UKVI.
- Set up automated reminders for visa expiry, job changes, or absences.
- Perform quarterly mock audits to review HR processes, SMS entries, and compliance workflows.
- Have personnel rehearsed to respond to auditors, whether formal or unannounced.
- Training of the HR team in these duties should be completed, and everything should be audit-ready in case UKVI decides to inspect.
Real Reddit Query: CoS Allocation
A Reddit user shared they got a letter saying their Sponsor Licence was approved and that they’ve been given 2 CoS allocations. Now they’re wondering: Can they use these 2 CoS immediately, or is there still yet another process?
Here’s the full question:
“My company’s sponsorship license was just granted and the acceptance letter came back and said that the company has two COS allocations. Does this mean these are ready to be assigned? I’m confused because I’ve seen some people say that they had to apply for a COS allocation after the license was approved and that it takes up to two months.”
Note: This information comes from a real person on Reddit. It shows their experience and is not official advice.
Getting a Sponsor Licence approval letter which also confirms your CoS allocation is already a ‘green light.’ You can assign the CoS immediately in the SMS. You need to apply if the letter only says your licence is granted, but in this case, the 2 CoS were also confirmed. You can apply again if you need another CoS allocation in the future.
If you need professional help, our immigration lawyer at Legend Consults is available anytime.
Did You Know? There are 2 types of CoS: Defined and Undefined. Learn more about their differences in our guide.
Sponsorship Management System (SMS)
This is the online portal used by licenced sponsors to manage their sponsored workers. It’s the primary communication channel between the sponsor and UKVI.
What can you do in the SMS?
You can fulfil your sponsorship compliance duties in the SMS, which includes:
- Assigning Certificates of Sponsorship (CoS) to workers
- Reporting changes (like job title, salary, or early leave)
- Updating your organisation’s details (address, key personnel, etc.)
- Adding or removing users who can access the system
- Tracking the status of your sponsored workers
Who uses SMS?
Only authorised personnel can use SMS:
- Level 1 user: Handles most tasks like assigning CoS and updating details
- Level 2 user: Has limited access (optional role)
The Level 1 user is usually assigned during the licence application. You can add more users later if needed.
Common Mistakes and Reasons for Sponsorship Licence Refusal
Applying for a Sponsor Licence can be quite tricky, as even the smallest mistakes may get your application rejected. However, these mistakes are completely avoidable. Know them all so you’d know what to avoid:
- Not double-checking with the Home Office for the full list of required documents. Take care that you meet all requirements and keep copies of your own records, too.
- Not setting up proper systems to track attendance, maintain employee records, and report changes like job role or salary updates on time. You must be able to show UKVI you can meet all compliance duties.
- Not running intensive background checks on candidates. Before assigning roles on the SMS, be sure they have a clean immigration and criminal record history.
- Trying to sponsor a role that doesn’t meet the skill or salary requirements for a Skilled Worker visa. Note that thresholds have increased in the past months. See if who you’re trying to hire still qualifies for sponsorship.
- Ignoring internal problems in your organisation. Before applying for a licence, fix any troubles first. Create clear compliance policies, train staff, and be ready to show evidence of improvement during the application.
- Lacking evidence that your job offers or business is not genuine. Once UKVI suspects you of any of these, it’s likely grounds for rejection.
Proactively avoid these common application mistakes with professional guidance from a UK immigration lawyer at Legend Consults.
Renewal, Suspension, and Revocation
Renewal
A Sponsor Licence is only valid for 4 years. You must apply for renewal at least 8 weeks before it expires to keep sponsoring workers and avoid gaps.
Suspension
The Home Office can temporarily suspend your licence if they find serious problems, like poor record-keeping or failure to report changes. Whilst suspended, you can’t sponsor new workers or assign CoS.
Revocation
Your licence can be revoked (cancelled) if you repeatedly break rules, don’t cooperate with inspections, or commit serious breaches like employing illegal workers. This means you lose your licence and must stop sponsoring immediately.
What If Your Licence Gets Suspended or Revoked?
You will receive a notification letter from the Home Office if your licence is suspended, which includes the reasons for suspension. Be sure to promptly address the issues, as you can still challenge the suspension and present supporting documents as long as you act within the deadline.
Revocation is the more serious consequence. If your licence is revoked, you can no longer sponsor migrant workers, and your current sponsored visas might also be affected. You should immediately seek legal advice and reapply or challenge the decision.
FAQs
As of 2025, the application fee for UK Sponsor Licence is £574 for small or charitable sponsors and £1,579 for medium or large sponsors.
The standard processing time for a UK Sponsor Licence is up to 8 weeks, but if all documents are complete and accurate, then some applications are decided in 4–6 weeks. A priority service costs an extra £500 which offers a decision within 10 working days.
Yes, every business in the UK can apply for a Sponsor Licence regardless of size as long as it is genuine, legally operating in the UK, and meets all Home Office requirements.
Sponsor Licence refusals often happen due to missing or wrong documents, late submissions, misleading information, weak HR systems, financial instability, or past immigration violations. Contact Legend Consults’ UK immigration lawyer for personalised advice.
After getting a Sponsor Licence, you have compliance duties with the Home Office to maintain your licence. This includes keeping detailed records for each sponsored worker, promptly reporting changes to the Home Office, and more. If you need expert advice, contact Legend Consults.
Conclusion
Getting a UK Sponsor Licence lets your business hire foreign skilled workers, giving you the unique edge in the competitive UK market. However, both application and ongoing compliance can be very challenging.
Make sure to follow the rules and stay organised to avoid any issues. Keep your records up to date and be ready when the Home Office checks in. With intensive preparation, sponsoring workers can be a smooth process for your team.
Get Expert Help from Legend Consults
Need personalised guidance with your UK Sponsor Licence?
Legend Consults makes the process simple and stress-free. Our experienced team of immigration lawyers guides you step-by-step to make sure your application is strong and complete.
A Sponsor Licence is crucial for any employer looking to access top international talent and stay competitive in the UK. The process can be tough, but the benefits far outweigh the effort. To succeed, you need to prepare carefully, meet all UKVI requirements, and stay compliant for the long term.
In this guide, we’ll walk you through every step to help you get your UK Sponsor Licence approved on the first try and set your business up for sponsorship success in 2025.
TL;DR
A UK Sponsor Licence is key to legally hiring international workers. This guide covers everything from eligibility and application to ongoing compliance, giving you the confidence to succeed in 2025.
