The UK’s immigration system requires businesses to obtain a Sponsor License if they intend to hire workers from outside the UK, including from the European Economic Area (EEA) and Switzerland. This license is issued by the UK Home Office and allows businesses to employ skilled workers under various visa categories.

Getting a Sponsor License is crucial for businesses that need international talent to fill skill gaps or expand their workforce. However, the application process is stringent, with multiple eligibility criteria, documentation requirements, and compliance obligations.

How To Get Sponsor License In UK

This guide will walk you through the step-by-step process of obtaining a UK Sponsor License, ensuring you understand the requirements and responsibilities involved.

Understanding the UK Sponsor License

What is a Sponsor License?

A Sponsor License is an authorization granted by the UK Home Office to businesses that wish to employ skilled workers from outside the UK. The license allows employers to issue Certificates of Sponsorship (CoS) to eligible workers, enabling them to apply for work visas.

Types of Sponsor Licenses

The UK government offers two main types of Sponsor Licenses:

1. Worker Sponsor License – For hiring long-term skilled workers under categories such as:
   • Skilled Worker Visa (previously Tier 2 General)
   • Health and Care Worker Visa
   • Senior or Specialist Worker Visa (Global Business Mobility)
2. Temporary Worker Sponsor License – For hiring workers for short-term roles under categories like:
   • Seasonal Worker Visa
   • Charity Worker Visa
   • Creative Worker Visa

Employers must apply for the appropriate category based on their hiring needs.

Benefits of a Sponsor License

• Access to a global talent pool
• Ability to fill skill gaps in industries facing shortages
• Legal authorization to hire skilled migrant workers
• Competitive advantage in business expansion

Eligibility Criteria for a Sponsor License

Before applying for a UK Sponsor License, employers must ensure they meet the eligibility requirements set by the UK Home Office. These criteria ensure that only genuine, legally operating businesses can sponsor foreign workers. Failing to meet these requirements can lead to application rejection or future compliance issues. Below are the key eligibility criteria:

1. The Business Must Be Legally Registered and Operational in the UK

To qualify for a Sponsor License, the employer must operate a legitimate business that is officially registered in the UK. The business should:

• Be registered with Companies House or another relevant UK authority.
• Have a valid business address within the UK.
• Be actively trading and financially stable.

Businesses that are newly established can still apply but must provide sufficient evidence of their operational status, such as financial records, business activities, and contracts that demonstrate the need for hiring foreign workers.

2. The Organization Must Prove a Genuine Need to Hire Foreign Workers

A Sponsor License is granted to employers who genuinely need to recruit foreign workers due to skill shortages or specialized job roles that cannot be filled by the local workforce. The Home Office will assess:

• Whether the job roles meet the Skilled Worker visa or other relevant visa requirements.
• If the business has previously attempted to recruit from within the UK but failed.
• If the job roles are listed on the Shortage Occupation List, which gives priority to certain professions.

Employers may be asked to provide job descriptions, salary details, and proof of recruitment efforts to justify their need for a Sponsor License.

3. Employers Must Have an Appropriate HR System to Manage Sponsored Employees

Having a strong HR and compliance system is essential for monitoring and managing sponsored workers. Employers must demonstrate that they have:

• A structured HR process to track employee attendance, work status, and visa compliance.
• A system to keep records of employee information, including contact details and work history.
• The ability to report issues to the UK Home Office, such as when a sponsored worker resigns, changes job roles, or leaves the country.

Failure to implement a robust HR system could result in license suspension or revocation.

4. Key Personnel Must Meet Suitability Requirements

When applying for a Sponsor License, businesses must nominate key personnel to manage the sponsorship process. These individuals include:

• Authorizing Officer – A senior staff member responsible for sponsorship compliance.
• Key Contact – The main point of communication between the company and the Home Office.
• Level 1 User – The person responsible for managing sponsorship activities in the Sponsorship Management System (SMS).

The Home Office will conduct background checks on these personnel to ensure:

• They have no unspent criminal convictions related to immigration offenses, fraud, or other serious crimes.
• They have not been involved in past sponsorship violations or Home Office compliance failures.
• They are based in the UK and actively involved in the business.

If any key personnel have a negative compliance history, the application could be refused or delayed.

Consequences of Failing to Meet Eligibility Criteria

Failing to meet these requirements can result in:

• Immediate rejection of the Sponsor License application.
• Additional scrutiny from the Home Office, leading to longer processing times.
• Inability to hire foreign workers, affecting business operations and growth.

To avoid rejection, businesses should carefully assess their eligibility before applying and take steps to address any deficiencies.

Documents Required for a Sponsor License Application

When applying for a Sponsor License, businesses must submit official documents to verify their legitimacy and compliance with UK regulations. The required documents depend on the business structure, industry, and type of license applied for.

The Home Office typically requires at least four different types of supporting documents. Below is a detailed breakdown of the key documents needed:

1. Proof of Business Registration

To verify that the business is legally operating in the UK, applicants must provide:

• Companies House Registration Certificate (for limited companies).
• Partnership Agreement (for partnerships).
• Sole Trader Registration with HMRC (for self-employed businesses).
• Charity Registration Number (if applying as a non-profit organization).

This document confirms that the business exists and is officially registered.

2. Proof of Business Premises

The Home Office requires proof that the business has a physical presence in the UK. Acceptable documents include:

• Lease Agreement or Property Ownership Deeds showing the company’s registered address.
• Recent Utility Bills (electricity, gas, water) in the company’s name.
• Business Rates Bill issued by the local council.

Virtual offices or PO box addresses may not be accepted unless the business model justifies their use.

3. Financial Documents to Prove Stability

Employers must show that they are financially stable and capable of paying foreign workers. Required financial documents include:

• VAT Registration Certificate (if applicable).
• Latest Corporate Tax Return (CT600) filed with HMRC.
• Audited or Unaudited Business Accounts prepared by a certified accountant.
• Business Bank Statements from the last three to six months.

Smaller businesses may also need to submit recent payslips or tax filings as proof of financial health.

4. Employer’s Liability Insurance Certificate

Businesses must have Employer’s Liability Insurance covering at least £5 million, as required by UK law. This insurance protects both the company and employees in case of workplace incidents.

5. HR and Recruitment Policies

Since businesses must comply with Home Office sponsorship duties, they should submit documents showing that they have proper HR systems in place. These may include:

• Recruitment and Hiring Policies – A document outlining how the business selects employees.
• Staff Record-Keeping Procedures – Evidence of how the company tracks employee work status and visa compliance.
• Right to Work Check Procedures – Documents showing how the business verifies an employee’s legal right to work in the UK.

These documents prove that the business can effectively manage sponsored employees and prevent immigration rule violations.

6. Additional Documents Based on Business Type

Depending on the industry, businesses may need to provide extra supporting documents:

• Franchise Agreement (if operating under a franchise).
• Licensing Certificates (if in a regulated industry, such as healthcare or finance).
• Client Contracts or Service Agreements (for businesses providing outsourcing services).

Providing accurate and complete documentation is essential to avoid delays or rejection.

Step-by-Step Application Process

Step 1: Create a UK Visas and Immigration (UKVI) Account

• Register on the UK Home Office website to access the Sponsor License application form.

Step 2: Complete the Online Application Form

• Fill out the application form (Sponsor Application for Employers) carefully.
• Ensure all details are accurate to avoid delays or rejection.

Step 3: Pay the Application Fee

• Small businesses and charities: £536
• Medium and large businesses: £1,476

Step 4: Submit the Required Documents

• Send the necessary supporting documents within five working days after submission.

Step 5: Home Office Assessment and Compliance Visit

• The Home Office may conduct an onsite visit to ensure the business complies with sponsorship responsibilities.
• If approved, the license is granted for four years.

Understanding the Sponsor License Fees

When applying for a UK Sponsor License, businesses must consider various application and ongoing costs. These fees depend on the size of the company, the number of workers sponsored, and the type of visa the worker is applying for. Proper budgeting is essential to ensure compliance with all financial obligations.

Application Fees

The initial cost of obtaining a Sponsor License varies depending on the size and type of the business:

• Small Businesses & Charities: £536
• Medium and Large Businesses: £1,476

A business is classified as a small business if it meets at least two of the following criteria:

• Annual turnover of £10.2 million or less
• Total assets worth £5.1 million or less
• 50 employees or fewer

If a company exceeds these limits, it is classified as a medium or large business and must pay the higher application fee.

Additional Costs

1. Immigration Skills Charge

The Immigration Skills Charge (ISC) is a fee that employers must pay when assigning a Certificate of Sponsorship (CoS) to a worker under the Skilled Worker or Senior/Specialist Worker routes.

The cost depends on the size of the business and the length of employment:

• Small businesses & charities: £364 per year per worker
• Medium & large businesses: £1,000 per year per worker

For example, if a large business sponsors an employee for a 3-year Skilled Worker visa, the total ISC fee would be £3,000.

2. Certificate of Sponsorship (CoS) Fee

Employers must issue a Certificate of Sponsorship (CoS) to each worker they sponsor. This is an electronic record that contains details about the job role and employer information.

• Cost per CoS: £199 per worker (for Skilled Worker and other work visas)

For temporary workers under Temporary Worker visas, the CoS fee is lower—£21 per worker.

3. Other Potential Costs

• Visa Application Fees (paid by the worker but can sometimes be covered by the employer)
• Legal or Consultancy Fees (if using an immigration solicitor or specialist)
• Home Office Priority Processing Fees (if faster processing is required)

Employers should budget accordingly to ensure they can meet all these financial obligations before applying for a Sponsor License.

Compliance and Sponsor Duties

Obtaining a Sponsor License is just the first step; maintaining ongoing compliance is crucial. The UK Home Office requires sponsors to adhere to strict rules to ensure that foreign workers are legally employed and treated fairly.

Failure to comply can lead to fines, revocation of the Sponsor License, or even criminal prosecution.

Record-Keeping and Reporting Duties

Employers must maintain detailed records of all sponsored employees and report any significant changes to the Home Office.

Record-Keeping Requirements

Employers must keep accurate and up-to-date records for each sponsored worker, including:

• Copy of the worker’s passport (including visa pages)
• Biometric Residence Permit (BRP) copies
• Right-to-work checks and verification documents
• Employment contract and job description
• Worker’s address, contact details, and history of work absences

These records should be kept for the duration of the worker’s employment and up to one year after employment ends.

Reporting Duties

Employers must report specific changes to the Sponsorship Management System (SMS) within 10 working days. These include:

• Change in employment status (e.g., resignation, termination, change in job role)
• Change in worker’s visa status
• Prolonged absence from work (e.g., worker missing for more than 10 days without permission)
• Significant changes to the business (e.g., mergers, acquisitions, change of ownership)

Failure to report these changes can result in penalties or loss of the Sponsor License.

Ensuring Worker Compliance

1. Ensuring Workers Follow Visa Conditions

Employers must ensure that all sponsored workers:

• Work only in the job role specified in their Certificate of Sponsorship (CoS)
• Receive the salary and benefits promised in their visa application
• Do not engage in unauthorized secondary employment
• Maintain valid immigration status throughout their employment

2. Preventing Illegal Employment

It is the employer’s responsibility to verify that:

• Employees have the right to work in the UK before starting employment.
• The business does not employ anyone whose visa has expired.
• The worker’s job title, duties, and salary match their visa requirements.

Failure to ensure compliance can lead to civil penalties of up to £20,000 per illegal worker, as well as possible criminal charges.

Consequences of Non-Compliance

If an employer fails to comply with their sponsorship duties, the Home Office may take the following actions:

1. Suspension of the Sponsor License

The Home Office may temporarily suspend the Sponsor License while they investigate potential breaches. During this time, the employer:

• Cannot issue new Certificates of Sponsorship (CoS)
• May be required to correct any issues before the license is reinstated

2. Revocation of the Sponsor License

If serious breaches are found, the Sponsor License may be permanently revoked. This means:

• The business loses its ability to sponsor foreign workers.
• All existing sponsored employees lose their right to work in the UK.
• The employer may face financial penalties or legal action.

3. Financial Penalties and Criminal Charges

Employers who knowingly violate sponsorship rules may face:

• Fines of up to £20,000 per illegal worker
• Criminal prosecution for severe breaches, including possible imprisonment
• Damage to the company’s reputation and ability to hire skilled workers in the future

To avoid these penalties, employers should regularly review their compliance procedures and conduct internal audits.

Certificate of Sponsorship (CoS) and Assigning Workers

What is a Certificate of Sponsorship (CoS)?

A Certificate of Sponsorship (CoS) is a unique reference number issued by an employer to a foreign worker, allowing them to apply for a UK work visa.

Each CoS contains important details such as:

• Job title and description
• Salary and working hours
• Employer’s sponsorship details
• Worker’s personal details

Without a valid CoS, a foreign worker cannot apply for a work visa in the UK.

Types of Certificate of Sponsorship (CoS)

There are two types of CoS, depending on where the worker is applying from:

1. Defined CoS

• For workers applying from outside the UK.
• Must be requested from the Home Office before it can be assigned.
• Mainly used for Skilled Worker visa applicants.

2. Undefined CoS

• For workers already in the UK who are switching visas or extending their stay.
• Employers can issue these directly through the Sponsorship Management System (SMS).
• Used for visa routes such as Skilled Worker visa (inside the UK) and Global Business Mobility visas.

How to Assign a CoS

Employers must assign a CoS through the Sponsorship Management System (SMS) by:

1. Logging into the SMS portal and selecting the appropriate visa category.
2. Entering worker details, job description, and salary information.
3. Paying the CoS fee (£199 for Skilled Workers, £21 for Temporary Workers).
4. Generating the unique CoS reference number for the worker to use in their visa application.

Once issued, the worker must use the CoS within 3 months to apply for their visa.

Common Reasons for Sponsor License Rejections and How to Avoid Them

Applying for a Sponsor License can be a complex process, and many businesses face rejections due to mistakes or failure to meet the necessary criteria. Understanding the common reasons for refusal and how to prevent them can improve the chances of a successful application.

Common Reasons for Sponsor License Rejections

1. Incomplete or Incorrect Documentation

One of the most frequent reasons for rejection is the submission of incomplete or incorrect documents. The Home Office requires businesses to provide evidence of their legitimacy, financial stability, and HR processes. Missing or inaccurate documents can delay or lead to outright refusal of the application.

Common Document Mistakes

• Submitting expired or incorrect versions of documents
• Failing to provide the required number of supporting documents
• Providing unclear or unauthenticated copies

How to Avoid This Mistake:

• Carefully review the Home Office’s document checklist.
• Ensure all documents are valid, clear, and properly certified if necessary.
• Double-check that you have submitted the correct number of documents for your business type.

2. Failure to Meet Eligibility Criteria

To be granted a Sponsor License, businesses must prove they have a genuine need to hire foreign workers. The Home Office may reject applications if the employer fails to justify why hiring a non-UK worker is necessary.

How to Avoid This Mistake:

• Clearly demonstrate a labor shortage or skill gap that requires hiring overseas workers.
• Provide job descriptions that align with the UK Shortage Occupation List, if applicable.
• Ensure the job meets the required salary and skill level for a Skilled Worker visa.

3. Non-Compliance with Home Office Standards

Employers must have HR systems and processes in place to manage sponsored employees and comply with immigration laws. A lack of compliance in record-keeping, reporting, or preventing illegal work can lead to rejection.

How to Avoid This Mistake:

• Implement HR policies that track work absences, visa renewals, and document checks.
• Conduct right-to-work checks and keep detailed employment records.
• Train HR personnel on Home Office compliance requirements.

4. Past Immigration or Legal Violations

If a business or its key personnel have a history of immigration violations, financial fraud, or criminal activity, the application may be automatically rejected.

How to Avoid This Mistake:

• Ensure that key personnel (e.g., Authorizing Officer, Key Contact) have no disqualifying criminal records.
• Resolve any past compliance issues before applying.
• If previous issues exist, provide evidence of corrective measures taken to prevent future violations.

How to Avoid Rejection

To improve the chances of approval:

✅ Double-check all documents before submission to ensure accuracy and completeness.
✅ Provide clear evidence of the business’s need to hire foreign workers.
✅ Maintain compliance with Home Office guidelines, including proper HR systems and legal hiring practices.
✅ Seek professional legal advice if needed, especially if the business has complex immigration needs.

By following these steps, businesses can avoid common mistakes and increase their chances of obtaining a Sponsor License.

Sponsor License Renewals and Revocations

Once a business obtains a Sponsor License, it must be renewed every four years. Failure to renew on time or comply with Home Office requirements can lead to license revocation, preventing the business from hiring foreign workers.

Renewing a Sponsor License

1. How Long Does a Sponsor License Last?

A Sponsor License is valid for four years from the date of approval. If not renewed before expiration, the business loses its sponsorship privileges, and its sponsored employees may be forced to leave the UK.

2. How to Renew a Sponsor License

To renew a Sponsor License, employers must:

1. Log into the Sponsorship Management System (SMS) and submit a renewal request.
2. Pay the renewal fee (£536 for small businesses & charities, £1,476 for large businesses).
3. Ensure all compliance records are up to date.
4. Be prepared for a Home Office compliance audit before renewal approval.

Important Tip: Start the renewal process at least 3 months before the license expires to avoid disruptions.

Reasons for Sponsor License Revocation

The Home Office can revoke a Sponsor License if a business fails to comply with sponsorship duties. This can have serious consequences, including financial penalties and loss of ability to sponsor workers.

Common Reasons for Revocation

❌ Failure to comply with reporting duties – Not informing the Home Office about changes in worker status.
❌ Hiring workers illegally – Employing individuals without proper work authorization.
❌ Poor record-keeping practices – Inadequate HR systems or failure to maintain employee documentation.
❌ Providing false or misleading information – Submitting incorrect data during the application or renewal process.

Consequences of License Revocation

• Loss of sponsorship privileges – The business can no longer sponsor new or existing workers.
• Workers may lose their visas – Sponsored employees may have to leave the UK.
• Fines and legal action – The business could face penalties for serious breaches.
• Damage to reputation – Losing a Sponsor License can negatively impact the company’s credibility.

To avoid revocation, businesses should regularly review their compliance procedures, conduct internal audits, and respond promptly to Home Office requests.

Alternatives to a Sponsor License

If a business does not qualify for a Sponsor License or wants to avoid the complex application process, there are alternative options to consider.

1. Hiring Workers Who Already Have the Right to Work in the UK

Some workers do not require sponsorship because they already have permission to work in the UK. These include:

• British citizens and settled residents.
• EU nationals with pre-settled or settled status under the EU Settlement Scheme.
• Individuals on visas that allow employment, such as the Graduate Visa, Spouse Visa, or Ancestry Visa.

Advantages:

✔ No need for a Sponsor License or compliance obligations.
✔ Faster and cost-effective hiring process.
✔ No requirement to pay the Immigration Skills Charge (ISC).

2. Partnering with Recruitment Agencies That Handle Sponsorship

Some licensed recruitment agencies or umbrella companies already hold a Sponsor License and can sponsor workers on behalf of client businesses.

Advantages:

✔ Reduces administrative burden on employers.
✔ No need for a business to apply for a Sponsor License.
✔ Can help with temporary or contract-based hiring needs.

Disadvantages:

❌ May involve higher recruitment fees.
❌ The business does not directly control sponsorship decisions.

3. Utilizing the Global Talent Visa or Graduate Visa Routes

Some visas allow highly skilled professionals to work in the UK without employer sponsorship.

Global Talent Visa

• For leaders or promising individuals in tech, science, arts, or academia.
• Does not require a Sponsor License.
• Offers flexibility to work for any employer or be self-employed.

Graduate Visa

• For international students who completed a degree in the UK.
• Allows work for up to 2 years (3 years for PhD graduates) without sponsorship.
• Employers can hire graduates without needing a Sponsor License.

Advantages of Alternative Routes:

✔ No need to manage sponsorship duties.
✔ Reduced costs compared to traditional work visa sponsorship.
✔ More flexibility in hiring international talent.

Conclusion

Obtaining a Sponsor License in the UK is a complex but necessary process for businesses looking to hire skilled foreign workers. By understanding the eligibility criteria, documentation requirements, and compliance responsibilities, employers can navigate the process smoothly.

Proper planning, thorough documentation, and adherence to Home Office regulations will increase the chances of approval. Businesses should also maintain compliance to retain their license and avoid penalties.

For those unsure about the process, seeking professional legal or immigration advice can be beneficial. A well-managed Sponsor License not only allows businesses to access global talent but also ensures long-term growth and success in an increasingly competitive market.