Sponsor Licences

To be eligible for a Sponsor Licence, a UK-based business must meet several key requirements:

• Genuine UK Presence and Operations
  The business must be actively trading and operating legally within the UK. The Home Office does not specify a minimum trading duration, meaning even newly established businesses may apply. However, the supporting corporate documentation required may vary depending on the company’s trading history.
• Business based in the UK
  A physical presence in the UK is essential – typically demonstrated through proof of occupancy at business premises. For virtual businesses, it is critical to show that robust HR systems and processes are in place to meet sponsorship duties and compliance requirements.
• Genuine Vacancies
  The Home Office will assess whether the role being offered is genuine and meets the required skill and salary thresholds for the relevant immigration category.

As part of the Sponsor Licence application process, businesses must nominate and appoint individuals to take on key roles in managing the Sponsor Licence. These roles are central to ensuring compliance and smooth communication is maintained with the Home Office:

1. Authorising Officer (AO)
   The AO should be the most senior person responsible for overseeing the recruitment of sponsored workers and ensuring the organisation meets its sponsorship obligations. This role must be filled throughout the duration of the licence.
2. Key Contact (KC)
   Acting as the main liaison with UK Visas and Immigration (UKVI), the KC will be responsible for handling communications with UKVI on behalf of the business.
3. Level 1 User
   Responsible for the day-to-day operation of the Sponsor Management System (SMS), this individual manages tasks such as assigning Certificates of Sponsorship (CoS), updating licence details, renewing CoS allocations, requesting additional Level 1 or Level 2 users, reporting any changes of circumstance requests etc.

To proceed with the Sponsor Licence application, the organisation must have at least one employee who is a ‘settled worker’ and can fulfil one or more of these roles. For further information on who meets the definition of a ‘settled worker’, please contact our Immigration team.

We work with businesses to ensure they remain compliant (LINK TO 3.8.4 UKVI Compliance) and confident throughout the duration of their Sponsor Licence. Our Immigration team provides clear, commercial guidance to help organisations meet their sponsorship duties and maintain compliance with UK Visas and Immigration (UKVI).

UKVI may conduct announced or unannounced visits (LINK TO 3.8.5.7 Representation at UK Visas and Immigration compliance visits) to a sponsor’s premises at any point during the validity of a Sponsor Licence. These inspections are designed to assess whether the business is fulfilling its obligations and preventing illegal working.

The Home Office sets out a number of key duties that sponsors must adhere to:

• Change of Circumstances Reporting
  Sponsors must promptly notify UKVI of any changes – such as a new business address, mergers or acquisitions, or certain updates relating to sponsored employees – via the Sponsor Management System (SMS).
• Record Keeping
  Employers are required to maintain comprehensive records for each sponsored employee. This includes national insurance numbers, proof of Right to Work (e.g. Right to Work checks visa vignettes), employment contracts, qualifications, CVs, and Certificates of Sponsorship (CoS). Our Immigration team can advise on the full list of required documents and help integrate these into your existing HR processes.
• Absence Monitoring
  Businesses must have effective systems in place to record and authorise employee absences. This includes maintaining accurate records of leave and ensuring visibility of each sponsored worker’s whereabouts.
• Monitoring and Reporting to the Home Office
  Sponsors must report certain information regarding sponsored employees to the Home Office, including unauthorised absences or changes to an employee’s role or contract. Timely reporting is essential to maintain compliance and avoid enforcement action.

One of the final steps in securing a Sponsor Licence is the payment of the application fee.

The fee will vary depending on the size of the organisation:

Small or Charitable sponsors – £574
A business qualifies as ‘small’ if it meets at least 2 of the following criteria:

• Annual turnover of £15 million or less
• Total assets of £7.5 million or less
• 50 employees or fewer.

Medium or Large sponsors – £1,579
Businesses that do not meet the above criteria are considered medium or large.

Once a Sponsor Licence is granted, additional fees will apply for each individual visa application, depending on the visa type and duration. For a detailed breakdown of the costs involved in sponsoring an EU or non-EU national, our Immigration team is here to advise.

Businesses can apply for various Sponsor Licences to sponsor workers.

This route enables UK-based organisations to sponsor skilled workers for long-term roles. It includes:

• Skilled Worker (formerly Tier 2 General)
• Global Business Mobility – Senior or Specialist Worker (formerly Intra-Company Transfer)
• T2 Minister of Religion
• International Sportsperson

Employers can sponsor individuals for varying durations depending on the visa type and role requirements.

Temporary Worker Licence

Designed for specific short-term engagements, this licence allows businesses to sponsor individuals for temporary work such as volunteering, training, or seasonal roles. Categories include:

• Creative Worker – up to 2 years
• Charity Worker – up to 1 year
• Religious Worker – up to 2 years
• Government Authorised Exchange – 1 to 2 years
• International Agreement – up to 5 years, for roles governed by international law (e.g. employees of governmental bodies)
• Seasonal Worker (Horticulture or Poultry) – up to 6 months
• Scale-up Worker – up to 2 years, for fast-growing businesses
• Global Business Mobility routes, including:

• • Graduate Trainee – up to 1 year
  • Service Supplier – 6 or 12 months
  • UK Expansion Worker – up to 2 years
  • Secondment Worker – up to 1 year.

While the application process itself is straightforward, compiling the necessary documentation and details can take several weeks.

Once submitted, applications are typically processed by the Home Office within 8 weeks. During this time, UK Visas and Immigration (UKVI) may conduct a compliance visit – either announced or unannounced – to assess whether the business can be trusted to meet its sponsorship obligations. If UKVI does visit, the overall process may extend by 4-6 weeks.

For organisations needing an expedited decision, the Home Office offers a priority service. A fee of £500 applies, and applications are usually processed within 10 working days.

Once approved, the Home Office will assign one of two licence ratings:

• A-Rated Licence
  This is the standard rating granted upon approval. It confirms that the business meets all sponsorship requirements and is authorised to assign Certificates of Sponsorship (CoS) to eligible workers. The business will also be listed on the official register of sponsors.
• B-Rated Licence
  If the Home Office identifies gaps in a sponsor’s compliance or HR systems, the licence may be downgraded to a B-rating. In this case, the business will no longer be able to assign CoS to new employees until specific conditions are met. To restore an A-rating, the business must demonstrate its commitment to improvement by signing and agreeing to the Home Office’s action plan and pay the associated action plan fee.

Once a sponsor licence is approved, the business is granted an A-rated licence, enabling it to begin assigning Certificates of Sponsorship (CoS) to eligible employees – whether based in the UK or overseas.

From this point forward, the focus shifts to ongoing compliance. The organisation must adhere to its sponsorship duties and maintain robust internal systems to meet Home Office requirements. Appointed key personnel play a central role in managing these responsibilities, and in efficiently keeping records related to the organisation and sponsored workers.

Key personnel have access to the Sponsor Management System (SMS), a secure online portal that holds all relevant licence information, including details about sponsored workers and organisational updates. Through the SMS, businesses can assign CoS, report changes, and ensure the organisation continues to meet sponsorship duties.

Once approved by the Home Office, a Sponsor Licence is valid indefinitely. However, maintaining this status requires ongoing compliance. If the Home Office identifies that a sponsor is not meeting its sponsorship duties, it may decide to downgrade, suspend or revoke the Sponsor Licence.

While most applications are successful, it’s important to understand the distinction between a rejected and a refused Sponsor Licence application, and the implications of each.

Rejected Applications

A Sponsor Licence application may be rejected as invalid if it contains procedural errors that prevent the Home Office from making a decision. Common issues include:

• Failure to submit mandatory documents
• Incomplete payment of the application fee
• Not submitting the signed submission sheet and supporting documents within 5 working days of the online application submission.

If an application is rejected, the business may reapply immediately. However, it is essential that any new application addresses the issues raised to avoid further rejection.

Refused Applications

A refusal typically occurs when the business does not meet all the eligibility and/or suitability criteria set out by the Home Office. However, there are other reasons why a Sponsor Licence application may be refused. Depending on the reason for refusal, the organisation may be faced with a ‘cooling off period’ of up to 24 months before a new Sponsor Licence application can be submitted. The cooling-off period begins from the date of the refusal decision.

Any future application must demonstrate that the business now meets all relevant criteria and has resolved the concerns outlined in the refusal letter.

For organisations facing urgent hiring needs, a rejected or refused Sponsor Licence can be highly disruptive and costly. It is critical to ensure that the correct processes are followed, and all requirements are met from the outset. Our Immigration team specialises in Sponsor Licence applications and can help businesses identify the appropriate HR systems, prepare compliant documentation, and navigate the process with confidence.

Whether you are applying for the first time or reapplying after a setback, we are here to help you move forward.

Our Immigration team has extensive experience supporting businesses through every stage of the Sponsor Licence process. Whether you’re applying for the first time or seeking strategic guidance on maintaining compliance, we are here to help.

If you require tailored advice or hands-on assistance, please reach out to our team.