LET’S DO BUSINESS
The quickest way from A to B is usually a conversation. So, if you want to find out more about how Legend Financial can boost your business, get in touch. We’ll give straight answers so you can make a confident decision, fast.
[ninja_form id=’38’]
Who Needs a Sponsor Licence?
Generally, if your business wants to hire someone from outside the UK who needs sponsorship for work visas, you will need a Sponsor Licence.
However, there are a few exemptions. For instance, that you do not need a Sponsor Licence to employ individuals who already have the right to work in the UK without sponsorship. Key examples are:
- Individuals with Indefinite Leave to Remain (ILR) in the UK.
- Those granted settled or pre-settled status under the EU Settlement Scheme.
- Irish citizens, who retain the right to work under the Common Travel Area arrangements.
- Those holding other types of visas that grant the right to work (e.g., Dependant visas, Global Talent visas, Graduate visas).
The Sponsor Licence is directly tied to the employee’s visa application. You must obtain the licence before you can sponsor anyone. Once your company has the licence, you can assign a Certificate of Sponsorship (CoS) to the employee. This CoS is an electronic record with a unique reference number that the employee must have to successfully apply for their work visa. Their application cannot proceed without it.
Difference between Sponsor Licence and Self Sponsorship
Many people get confused between sponsor licence and self sponsorship. But understanding the difference is crucial since they are separate topics.
A Sponsor Licence allows your business to sponsor foreign nationals for work visas, such as the Expansion Worker visa authorising you to hire them for specific roles. As the sponsor, you are responsible for assigning a Certificate of Sponsorship (CoS). The employee’s visa is tied directly to their employment with your company.
Now, let’s clarify a specific route that operates differently and is sometimes mistaken: the UK Expansion Worker Route.
UK Expansion Worker Route
It’s important you understand this pathway is quite different from how you would use your standard Sponsor Licence for your regular hiring needs. The UK Expansion Worker route is specifically designed for established overseas businesses that do not yet have a presence in the UK but want to set one up.
Here are the key differences:
- For this route, the sponsor is the overseas parent company, not your UK business.
- It allows that overseas company to send a senior manager or specialist employee to the UK solely to establish the company’s first UK branch or subsidiary.
- The overseas company needs to apply for its own specific sponsor licence permission for this purpose. Once their UK branch is set up and trading, that new UK entity might then need to apply for a standard Sponsor Licence if it wants to hire other sponsored workers directly in the UK in the future.
Learn all about UK work visa types in our comprehensive guide.
How To Get Sponsorship Licence In UK
Getting a Sponsor Licence in the UK involves completing the online application via the UK Home Office website and submitting all required supporting documents. Also, your business must meet certain legal and operational standards, choose the right licence type, appoint key personnel, and provide strong supporting documents. The Home Office will then conduct a thorough assessment of your organisation’s legitimacy, reliability, and capability to comply with sponsorship duties.
In some cases, they might also come for an inspection or site visit to verify your eligibility. Let’s break down the key requirements you must meet to become an approved sponsor:
Key Sponsorship License Requirements
Before anything else, make sure your organisation meets the Sponsorship Licence requirements. You must be a genuine UK-based business, operate lawfully, and have no disqualifying history such as immigration offences or previous licence revocations. Let’s explain these requirements in more detail:
Genuineness
You must be a genuine, lawful organisation operating within the UK. The Home Office will verify that your business exists and is actively trading. In some cases, they may check with regulatory bodies, such as the Financial Conduct Authority (FCA) or the Solicitors Regulation Authority (SRA), depending on your industry.
Honesty & Reliability
Both you and key personnel within your organisation must demonstrate honesty and reliability. This means you cannot have a history of immigration offences, relevant criminal convictions, or previous licence revocations. There also shouldn’t be any active prohibition preventing you from sponsoring workers.
Capability
Your business must have the systems, processes, and resources in place to comply with sponsorship duties. This includes having effective HR systems, a structured recruitment process, and proper record-keeping to ensure compliance with Home Office requirements. These systems will be closely assessed to ensure you can meet your responsibilities as a sponsor.
Genuine Vacancy
You must show that you have a legitimate need for the role you wish to sponsor. The employee you wish to hire meets the required skill and salary levels for the relevant visa route (e.g., Skilled Worker visa). The Home Office will want to confirm that your business genuinely needs to hire a foreign national to fill the position.
Choosing the Right Licence Type
Choosing the right licence type is related to your actual recruitment needs. Applying for the wrong category could delay or restrict your hiring process.
The licence you choose must align with the kind of roles you plan to recruit for. The Home Office offers two main categories:
1. Worker Licence
This is for long-term employment roles. The most commonly used route under this category is the Skilled Worker visa, which allows you to sponsor individuals for jobs that meet specific skill and salary thresholds. If your business is looking to fill permanent or ongoing positions, this is likely the licence you will need.
2. Temporary Worker Licence
This licence is designed for short-term or specific work placements. It includes routes such as Creative Worker, Charity Worker, and Seasonal Worker. These are suitable if you are recruiting for time-limited projects, events, or voluntary roles with registered charities.
When applying, you must clearly indicate which route(s) you intend to use under these categories. If you think of using both long-term and short-term hiring options, you will need to apply for both types of licences.
Appointing Key Personnel
Assign three essential roles within your business:
- Authorising Officer – A senior and competent person responsible for overall compliance.
- Key Contact – Your main point of communication with the Home Office.
- Level 1 User – The person who manages the Sponsorship Management System (SMS).
These roles are crucial for maintaining ongoing compliance and responding to any Home Office requests or audits.
Submitting the Application Form
You will need to prepare a range of supporting documents to prove your business is genuine and capable of meeting sponsorship duties. (We will go into detail in the next section.)
Access the application form on the UK government website. Make sure all details match your supporting evidence to avoid delays or rejections. Or you can hire one of our business immigration experts to make the process seamless.
Once you have submitted the online form, you must send your supporting documents to the Home Office within five working days. These can be uploaded digitally or submitted by post.
Sponsor Licence Application Fee
Below are the revised UK immigration fees for Sponsor Licences, reflecting the latest updates effective from 9 April 2025.
- Small/Charitable Sponsors: £574
- Medium/Large Sponsors: £1,579
Certificate of Sponsorship (CoS) Fee:
- Worker (Skilled Worker): £525 per CoS
- Temporary Worker: £55 per CoS
Immigration Skills Charge (ISC) (for Skilled Worker CoS):
- Small/Charitable Sponsors: £364 per year
- Medium/Large Sponsors: £1,000 per year
- Optional Priority Service (Licence Application): £500 (subject to availability)
Your Sponsor Duties: Maintaining Compliance
Once you are granted a Sponsor Licence, your work doesn’t stop there. The Home Office expects you to follow strict rules to keep your licence active and avoid penalties or revocation. These responsibilities are known as your sponsor duties.
Staying on top of these duties helps protect your business so you can continue hiring the global talent:
- Keep Accurate Records: Maintain up-to-date files for each employee you sponsor. This includes copies of their passport, visa, contact information, job title, and records of absences.
- Report Key Changes: Use the Sponsor Management System (SMS) to report any changes, such as a sponsored worker changing roles, moving to a new address, taking extended leave, or leaving the company.
- Allow Compliance Checks: Be prepared for unannounced visits or audits from the Home Office, and fully cooperate during checks.
- Conduct Right to Work Checks: Before employment begins, confirm that every worker, sponsored or not, has the legal right to work in the UK.
- Ensure Genuine Employment: The job role must remain as described in the Certificate of Sponsorship (CoS) and continue to meet the visa requirements.
- Uphold Employment Law and Promote Diversity: Follow all UK employment laws and foster an inclusive workplace that supports equality and diversity.
Risks of Getting it Wrong: Suspension and Revocation
Failing to meet your sponsor duties can have serious consequences. If the Home Office finds that your business is not fully compliant, your Sponsor Licence can be downgraded, suspended, or even revoked.
- Downgrading limits your ability to sponsor new workers until you resolve compliance issues.
- Suspension means you cannot assign new Certificates of Sponsorship (CoS) while your licence is under review.
- Revocation is the most severe outcome. If your licence is revoked, you lose the right to sponsor foreign workers entirely. Any existing employee visas will be curtailed, forcing them to leave the UK. They may lose the opportunity to apply for Indefinite Leave to Remain in the UK or even British citizenship.
Seeking help from our sponsor licence experts can help ensure you meet every requirement, protecting both your business and your team.
Special Considerations for Charities and Franchisees
If you are a charity or a franchisee, there are a few additional requirements you need to meet when applying for a Sponsor Licence.
For charities, you must prove your charitable status. Charitable organisations may also qualify for lower application fees, which can make the process more accessible. However, the Home Office will still expect the same level of compliance as any other sponsor.
If you are a franchisee, you will need to submit clear documentation from your franchisor confirming their permission for you to apply for a licence. This ensures your franchise relationship is legitimate and authorised.
FAQs About Sponsor Licence Grant
The standard processing time by the Home Office is usually 8 weeks, but it may take longer if additional checks are needed. A priority service (if available) can reduce the wait to 10 working days for an extra fee.
Technically, yes you can sponsor a family member. But the Home Office will apply extra scrutiny. You must prove the job is genuine, appropriately advertised, and the applicant is the best-qualified candidate, not hired solely due to family ties.
Significant changes like a merger, takeover, or legal entity change must be reported. You may need to apply for a new licence, depending on the nature of the change.
Yes, but you will need to provide alternative documents proving your business is genuine and capable of meeting sponsorship duties, such as a detailed business plan, bank statements, and contracts or client agreements.
A CoS is a unique reference number assigned to each sponsored worker. You will request an annual allocation based on your business needs. Once granted a licence, you will be able to issue CoS within your approved limit—subject to Home Office review.
Your Gateway to Global Recruitment
Hiring talent from around the world can open new doors for your business. This Sponsor Licence guidance is your first step toward making that happen.
We know it might seem complex at first. There are rules to follow and responsibilities to meet. But with the right support, the process becomes a lot more manageable and a lot less overwhelming.
Legend Consults will be there with you every step of the way. From submitting your documents to securing your licence with confidence. Our goal is to make immigration easier, so you can grow your business alongside people who help it thrive.
In today’s competitive job market, hiring international talent can be a game-changer for your business. It can help you fill crucial skill gaps and enhance the diversity within your workforce. But, to do this the UK’s immigration laws require you to obtain a sponsor licence. Put simply, a sponsor licence is official permission granted by the Home Office that allows you to employ individuals from outside the UK. Without it, you cannot hire workers who need a visa such as those applying for a Skilled Worker or Temporary Worker visa. In this article, you will get complete sponsor licence guidance, so you can confidently bring global talent to your business.
![UK immigration system proposals via white paper released [12 May]](https://legendconsults.com/wp-content/uploads/2025/05/LC-Blog-35-News_White-paper-proposal-ft-300x181.webp)
