Since Brexit, the UK’s immigration system has undergone significant changes, necessitating adjustments for employers to comply with new regulations. Businesses now must obtain a sponsorship licence to hire most foreign workers, including EU, EEA, and Swiss citizens who arrived in the UK after 31 December 2020. This shift reflects the UK’s move to a points-based immigration system, prioritising skilled workers while ensuring compliance with stricter hiring rules.
Securing a sponsorship licence has become a critical step for employers seeking to recruit international talent. Without it, companies cannot legally sponsor overseas workers, limiting their access to a global workforce. This requirement underscores the importance of understanding the updated immigration framework, as businesses increasingly rely on skilled professionals from abroad to fill labour gaps and drive growth in a post-Brexit economy.
What Is a UK Sponsorship Licence?
A sponsorship licence is an authorization granted by the UK Home Office, permitting employers to sponsor foreign nationals for work in the UK. It’s a legal prerequisite for hiring individuals under specific visa routes.
Types of Sponsorship Licences:
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Worker Licence: For long-term employment, including roles under the Skilled Worker and Global Business Mobility routes.
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Temporary Worker Licence: For short-term roles, such as seasonal work or charity positions.
Employers can apply for one or both types, depending on their hiring needs.
Who Can Apply for a Sponsorship Licence?
Any UK-based organization can apply, provided they meet certain criteria:
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Legitimate Operation: The business must be actively trading or operating in the UK.
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Compliance History: No unspent criminal convictions for immigration offences or other serious crimes.
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No Recent Licence Revocation: The organization should not have had a sponsor licence revoked in the past 12 months.
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Adequate HR Systems: There should be systems in place to monitor sponsored employees and ensure compliance with immigration rules.
For detailed eligibility criteria, refer to the UK government’s official guidance.
Requirements and Documents Needed
When applying, organizations must submit specific documents to demonstrate their legitimacy and capability:
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Proof of Business Registration: Such as a certificate of incorporation.
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Financial Documents: Recent bank statements and VAT registration certificates.
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Employer’s Liability Insurance: A certificate covering at least £5 million.
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Evidence of Premises: Lease agreements or ownership documents.
The exact documents required can vary based on the type of organization and the visa routes they intend to sponsor.
Step-by-Step Process to Apply for a Sponsorship Licence
1. Determine the Type of Licence Needed:
Assess your hiring needs to decide between a Worker Licence, Temporary Worker Licence, or both.
2. Prepare the Necessary Documents:
Gather all required documents as outlined above.
3. Complete the Online Application:
Submit the application through the UK Visas and Immigration (UKVI)
4. Pay the Application Fee:
Fees vary based on the size and type of organization.
5. Submit Supporting Documents:
Send the required documents to UKVI within five working days of the online application.
6. Await a Decision:
UKVI typically processes applications within eight weeks. However, they may conduct a compliance visit to assess your organization’s suitability.
Roles and Responsibilities of a Sponsor
Once licensed, sponsors have ongoing duties:
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Assigning Certificates of Sponsorship (CoS): These are virtual documents assigned to each foreign worker, enabling them to apply for a visa.
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Monitoring Employees: Keep track of sponsored workers’ attendance and report any significant changes to UKVI.
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Record Keeping: Maintain accurate records of sponsored employees, including contact details and employment history.
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Reporting Duties: Inform UKVI of any changes in your organization’s circumstances or if a sponsored worker breaches visa conditions.
Failure to meet these responsibilities can lead to penalties or revocation of the licence.
Application Costs and Processing Time
Application Fees:
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Small or Charitable Sponsors: £536
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Medium or Large Sponsors: £1,476
These fees are current as of 2025.
Processing Time:
Standard applications are processed within eight weeks. A priority service is available for an additional £500, aiming to process applications within 10 working days. However, this service has limited availability.
Common Mistakes to Avoid
Applying for a sponsorship licence involves meticulous preparation, and several common pitfalls can derail the process. Here are key mistakes employers should avoid:
Incomplete or Incorrect Documentation
Submitting an application without the required documents, or with inconsistencies in the information, is a common reason for refusal. It’s essential to use the Home Office’s list of acceptable documents to ensure full compliance.
Inadequate HR Systems
The Home Office must be confident that your organisation can fulfil its sponsor duties. Weak internal systems for monitoring sponsored employees—such as attendance tracking, immigration status checks, and reporting mechanisms—can result in rejection.
Assigning the Wrong Key Personnel
Key personnel such as the Authorising Officer and Level 1 User must be trustworthy and well-versed in the responsibilities of sponsorship. If individuals with past immigration violations or criminal convictions are appointed, the application will likely be denied.
Applying for the Wrong Licence Type
Some businesses mistakenly apply for the wrong kind of licence (e.g., a Temporary Worker Licence instead of a Skilled Worker Licence). This oversight can delay hiring and waste application fees.
Ignoring Pre-Licence Compliance Audits
UKVI may conduct a pre-licence compliance visit to inspect your business premises and processes. Being unprepared for such audits often leads to delays or refusal. Conduct an internal audit before applying.
What Happens After Approval?
Once your application is approved, your business is granted an A-rated sponsorship licence. This rating allows you to start sponsoring workers immediately.
Assigning Certificates of Sponsorship (CoS)
You’ll use your Sponsorship Management System (SMS) account to assign Certificates of Sponsorship to prospective employees. Each CoS is a unique reference number needed for the visa application.
Monitoring and Reporting
You must track sponsored employees’ start dates, job roles, salaries, and contact details. Any significant change—such as a job title update, resignation, or unauthorised absence—must be reported to UKVI through the SMS within 10 working days.
Maintaining Your A-Rating
If you fail to meet your duties, your licence rating could drop to a B-rating. This means you won’t be able to sponsor new workers until you resolve the compliance issues and undergo a time-limited action plan.
Validity Period
The sponsorship licence is valid for four years. You can continue sponsoring workers during this time as long as you remain compliant.
What Happens If Your Application Is Refused or Revoked?
Reasons for Refusal
Applications can be refused for a variety of reasons, including:
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Failure to provide adequate supporting documents
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Past immigration offences
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Poor compliance history
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Key personnel being unfit or improperly assigned
No Right of Appeal
There is no formal right of appeal if your application is refused. However, you may be able to apply for a judicial review if you believe the decision was legally flawed. In most cases, the best course of action is to correct the issues and reapply after a cooling-off period, usually six months.
Licence Revocation
If your licence is later revoked due to non-compliance or illegal activity, all CoS will be cancelled and your sponsored workers will have their visas curtailed. Revocation also leads to a mandatory cooling-off period before reapplication.
For more details on revocation and refusals, refer to UKVI’s sponsor guidance.
Renewal and Maintaining Your Sponsorship Licence
As your licence nears expiration, you’ll need to renew it to continue sponsoring workers.
When to Renew
Start the renewal process at least three months before your licence expires. UKVI will typically send reminders, but it’s your responsibility to act in time.
How to Renew
Renewal is done through the Sponsor Management System (SMS). You’ll:
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Submit an online application
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Pay a renewal fee
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Possibly undergo another compliance review or audit
Importance of Compliance
Your renewal application may be scrutinised more closely if there have been past compliance breaches. Make sure your HR records, reporting practices, and key personnel are up to date.
Avoiding Downtime
If you fail to renew on time, your licence will expire, and you’ll lose the ability to sponsor current or new workers. A proactive renewal strategy can avoid such interruptions.
Tips for a Successful Application
To increase your chances of approval and long-term compliance, consider the following best practices:
Seek Professional Guidance
Immigration law is complex. Working with a licensed immigration adviser or solicitor can help you navigate the process efficiently and avoid costly errors. Use the Office of the Immigration Services Commissioner (OISC) to find regulated advisers.
Organise Your Documents in Advance
Start gathering your supporting documents early and cross-check them against the latest Home Office requirements. Discrepancies or expired information can lead to delays or denials.
Invest in HR and Compliance Training
Ensure that staff members involved in the sponsorship process understand the requirements and consequences of non-compliance. This could include training your Authorising Officer and Level 1 Users.
Stay Up to Date with Immigration Changes
UK immigration laws change frequently. Subscribe to updates from UK Visas and Immigration and relevant industry newsletters to keep your processes current.
Perform Internal Audits
Conducting regular audits of your sponsorship duties and record keeping practices can help you identify and correct issues before they become compliance breaches.
Conclusion
Obtaining a sponsorship licence in the UK is an essential step for any business aiming to access global talent. While the process can seem daunting, understanding the requirements, preparing thoroughly, and maintaining compliance can streamline the journey. Whether you’re a small business looking to hire one international expert or a large company managing multiple visa holders, a valid sponsorship licence gives you the legal framework to grow your workforce and stay competitive.
For the most accurate and up-to-date information, always refer to the official UK government sponsorship guidance and consider seeking legal support when in doubt.
