Sponsor Licence Applications

SPONSOR LICENCE

What is a sponsor licence?

A Sponsor Licence is official authorisation granted by the Home Office (UK Visas and Immigration) allowing UK-based businesses—including sole traders—to employ workers from overseas.

To sponsor a worker, the individual must not be:

• A British or Irish citizen
• Settled in the UK (e.g. holding indefinite leave to remain)
• Otherwise holding valid immigration permission to work without sponsorship

Types of sponsor licences

There are two main categories of Sponsor Licences. Businesses must carefully consider which routes are required, as each involves specific eligibility criteria and supporting documentation.

Worker Licence

This applies to long-term employment routes, including:

• Skilled Worker
• Global Business Mobility (Senior or Specialist Worker)
• Minister of Religion
• International Sportsperson

Temporary Worker Licence

This applies to short-term or temporary roles, including:

• Charity Worker
• Creative Worker
• Global Business Mobility (Graduate Trainee, UK Expansion Worker, Service Supplier, Secondment Worker)
• Government Authorised Exchange
• International Agreement
• Religious Worker
• Seasonal Worker

While it is possible to apply for multiple routes, a strategic approach is recommended to ensure efficiency and reduce the risk of refusal.

Sponsor Licence as a Privilege

The Home Office treats sponsorship as a privilege, not a right. Licences are only granted to organisations that:

• Operate lawfully in the UK
• Will not undermine the UK immigration system
• Can meet ongoing compliance duties

Once granted, a Sponsor Licence is valid indefinitely, provided compliance is maintained.

Recent trends highlight increased scrutiny:

• Only 54% of applications were granted in 2025
• Licence revocations doubled  

This makes it essential to approach the application process with care and preparation.

Sponsor Licence Requirements

To obtain a Sponsor Licence, the Home Office must be satisfied that your business meets three key criteria:

1. Genuine Business Operating Lawfully

You must demonstrate that your business is legitimate and operating in the UK. This typically includes providing:

• Proof of business registration
• Relevant regulatory licences
• Financial records

2. Ability to Meet Sponsor Duties

Sponsor duties are ongoing and extend beyond the application stage. These include:

• Maintaining accurate records
• Monitoring sponsored workers
• Reporting changes to the Home Office
• Complying with UK immigration laws

The Home Office will assess your HR systems and internal processes to ensure you are capable of meeting these obligations. Compliance visits may take place at any time.

Failure to meet these duties can result in:

• Licence downgrading
• Suspension
• Revocation

3. Genuine Vacancy Requirement

You must prove that the role you intend to sponsor is legitimate and meets immigration requirements. This includes demonstrating:

• The role meets the required skill level (typically RQF Level 6 or above)
• The salary meets the applicable threshold
• The job is genuine and necessary for your business
• A direct employer–employee relationship exists
• The role is not primarily for third-party placement

You may also be required to provide:

• Details of your business operations and sector
• Evidence of recruitment processes
• Justification where a candidate has already been identified

The Home Office will assess whether the role is genuine or an attempt to facilitate entry to the UK.

Key Personnel

The most important part of applying for a sponsor licence is to appoint three key personnel in your business. These are as follows:

• An Authorising Officer – to manage the sponsorship licence and be ultimately responsible for the licence, ensuring that your sponsor licence duties are met;
• A Key Contact – to act as the main contact between your business and the Home Office;
• At least one Level 1 User to carry out day-to-day sponsorship activities using the Sponsorship Management System (SMS)

Important considerations:

• All personnel must be based in the UK
• The Authorising Officer and Level 1 User must be employees, directors, or office holders
• You must have at least one Level 1 User who is either a British citizen or settled in the UK
• One individual can hold multiple roles

Caution should be exercised when appointing family members, as this may raise concerns with the Home Office. A level 1 user cannot issue a certificate of sponsorship to a family member.

Costs

Application Fees:

• Small or charitable sponsors: £611
• Medium or large sponsors: £1,682

A business is classified as “small” if at least two of the following apply:

• Annual turnover of £15 million or less
• Assets worth £7.5 million or less
• 50 employees or fewer

If you do not meet the definition of a “small business” you will be considered a medium/large sponsor.

Additional Costs

• Certificate of Sponsorship (CoS): £525 per worker
• Immigration Skills Charge:
• £480 per year of sponsorship (small sponsors)
• £1,320 per year of sponsorship (medium/large sponsors)

Processing Times

• Standard processing: up to 8 weeks
• Priority service: 10 working days (additional £750, subject to availability)

The Home Office may:

• Request further documentation
• Conduct interviews
• Carry out compliance visits

These may extend processing times.

Assigning a Certificate of Sponsorship (CoS)

Once licensed, you can assign a Certificate of Sponsorship (CoS) to a worker.

There are two types:

• Defined CoS – for workers applying from outside the UK
• Undefined CoS – for workers already in the UK

A valid CoS is required before a worker can apply for a visa.

Common Reasons for Refusal

Applications are frequently refused due to:

• Missing or incorrect documentation
• Unsuitable key personnel
• Failure to demonstrate a genuine vacancy
• Incorrect job descriptions or occupation codes
• Salary levels not meeting requirements
• Inadequate HR systems
• Non-compliance with wider UK laws (e.g. right to work checks)

Licence Suspension or Revocation

Common compliance breaches include:

• Failing to provide genuine employment
• Breaching sponsor duties (e.g. failure to report changes)
• Ignoring Home Office audits
• Attempting to circumvent immigration rules
• Underpaying sponsored workers

The Home Office uses automated data-sharing with HMRC to verify the salaries paid to skilled workers via PAYE. If the salary paid does not match the salary as stated on their CoS, this will trigger an automatic compliance audit.

How we can help

Applying for and maintaining a sponsor licence can be complex. Our immigration team provides clear, practical advice tailored to your business.

We can assist with:

• Eligibility assessments
• Sponsorship and compliance guidance
• Preparing and submitting application
• Assisting with compliance audits

Please call us on 0208 995 3556 to arrange a consultation.