Sponsor Licence Application Guidance
Any UK employer that would like to sponsor overseas workers to come and work in the UK on a visa must hold a valid sponsor licence.
If you have any questions regarding the UK sponsor licence application, you can contact our expert team of professional immigration lawyers to discuss any concerns you may have, or for some help navigating the application process. You can call us on +44 (0) 333 305 9375, or contact us online via our live chat.
Page Contents:
- What is a sponsor licence for the UK?
- Who requires a sponsor licence?
- What is the sponsor licence eligibility for UK employers?
- Which visa requires a sponsor licence?
- Job suitability requirements
- How to apply for a sponsor licence?
- What documents are required for a sponsorship licence?
- Sponsor licence application costs
- After you apply for a sponsor licence
- Sponsor Licence Ratings
- Sponsor Licence Application Processing Time
- What are the Sponsorship Management Roles?
- Check whether your worker needs an ATAS certificate
- Sponsor licence audit
- What is a certificate of sponsorship?
- What are the responsibilities of a Sponsor Licence holder?
- Sponsor licence priority service
- How to check sponsor licence status
- Immigration skills charge
- Sponsor licence guidance: application tips
- Sponsor licence benefits
- How can Total Law help?
- Frequently Asked Questions
What is a sponsor licence in UK?
A sponsor licence is an official approval granted by the UK Home Office to an employer, business or educational institution, that allows it to sponsor foreign nationals to work or study in the UK. It is a critical requirement for companies that want to recruit individuals from outside the UK or the European Economic Area (EEA).
UK employers will first need to complete a sponsor licence application if they want to employ foreign workers.
Normally, UK sponsor licences fall under the categories of a Worker licence and Temporary Worker licence. The type of employment that the organization is hiring for will determine which sponsor licence the employer needs to apply for.
For the sponsor licence application, employers must reach the required obligations as the employer of a foreign worker, before and during employment.
If your UK sponsor licence application is approved, the company/ business will be awarded an A-rated licence and will be listed in the register of sponsors.
If the company/business, however, does not meet the duties as a sponsor, the sponsor licence could be downgraded to a “B rating.” If this happens, the UK visa and immigration office will provide an action plan. The business/company will need to follow the action plan to upgrade your licence back to an A-rating. An action plan costs £1,579.
Who requires a sponsor licence?
Employers require a sponsor licence to employ workers from outside the UK. This includes citizens of the EU, Iceland, Liechtenstein, Norway, Switzerland and worldwide. The sponsor licence extends to unpaid jobs, including volunteering.
To sponsor the following people, you do not require a sponsorship licence:
- People with Irish citizenship
- People with settled or pre-settled status through the EU Settlement Scheme
- People with Indefinite Leave to Remain in the UK
Sponsor licence eligibility requirements for UK employers
To be eligible to become a sponsor licence holder, the employer or sponsor must:
- Not hold any unspent criminal convictions for immigration offences with the home office or any other crimes, such as fraud
- Not have any history of failing to carry out sponsor duties
- Not have a sponsor licence revoked in the last 12 months
The sponsor licence application process is complex and requires the employer to provide detailed information on their organization.
The Home Office may revoke your valid sponsor licence at any time if they believe that you are not meeting the sponsor licence requirements.
Sponsor licence holders are not required to conduct a Resident Labour Market Test.
However, the Home Office will require the company to provide evidence to show that the employment of migrant workers is necessary.
There are two routes for the sponsor licence applications:
Depending on which, the sponsor licence application depends on the nature of work the employee will be doing.
Should the sponsor licence application be approved, the employer will then assign a “Certificate of Sponsorship” to each foreign worker.
Types of sponsor licence
As mentioned above, there are two types of workers that require a sponsor licence, skilled workers and temporary workers.
Skilled Worker sponsor licence
The Skilled Worker Visa is reserved for workers that are long-term skilled workers, who, with the visa, have the right to work for a minimum of three years, and usually five. Under the Skilled Worker Visa, there are subcategories of visas that require a skilled worker sponsor licence, too, these include the:
- Sportsperson Visa
- Minister of Religion Visa (Employees can work for up to three years under this subcategory)
To be eligible for a skilled worker visa, you have to prove the following:
- You will be working for a UK employer that’s been approved by the Home Office
- Have a ‘certificate of sponsorship’ (sponsor licence) from your employer with information about the role you’ve been offered in the UK
- Will do a job that’s on the list of eligible occupations
- Be paid a minimum salary
You can apply for this visa up to 3 months before you are supposed to start working, and this date is listed on your certificate of sponsorship. As part of your application, you’ll need to prove your identity and provide your documents.
If you are inside the UK, you should get a decision on the visa within 3 weeks or 8 weeks if you are outside the UK.
Temporary Worker sponsor licences
Temporary Worker sponsorship licence will allow business to hire from the international pool of talent by sponsoring workers to come and work in the UK. The Temporary Worker Visa is reserved for skilled workers who will do temporary work in the UK. The Temporary Worker Visa is broken into the following subcategories:
- Creative Worker: Permits 12 months for eligible creative workers
- International Sportsperson: Permits typically up to 12 months but may extend under certain conditions.
- Charity worker: Permits up to one-year
- Religious worker: Permits up to two years
- International agreement worker: For instances when work is covered by international law
- Government Authorized Exchange
To be eligible for a Temporary Worker Visa, you must prove the following:
- Have a certificate of a sponsorship reference number
- Have sufficient finances to support yourself in the UK (At least £1,270 (unless you’re exempt)
- Be 18 years old or older when you apply
- Your work is covered by international law
Job suitability requirements
The job you are sponsoring a foreign worker for must meet the suitability requirements. This includes meeting minimum wage and working time regulations, and meeting all necessary requirements for the worker’s specific visa route.
You must check the individual requirements for each visa to ensure the job meets the specific eligibility criteria. For example, if you’re sponsoring a child creative worker, you may first need to obtain a child performance licence for certain types of performative work.
International Sportsperson visa roles will require an endorsement letter from the relevant governing body for that sport. Religious Worker visa roles need to be advertised first in order to confirm that there is no candidate available who does not require sponsorship.
How to apply for a sponsor licence?
The steps to apply for a sponsor licence are as follows:
- Firstly, you must confirm that your business or organisation meets all necessary guidelines regarding eligibility and suitability. Your organisation must be genuine and lawfully operating in the UK.
- Start to organise arrangements for your sponsor licence. You must determine which type of licence you will be applying for and start appointing key personnel in the required sponsor management roles.
- Gather all the required supporting documents for your application.
- Fill in the online application form on the gov.uk site as accurately as possible and submit your supporting evidence.
- Pay the correct application fee for the size of your business.
- Await a decision from the Home Office. You may have to undergo pre-licence compliance visits and checks.
- If your application is approved, ensure you have set up your SMS properly and ensure ongoing compliance and training for all staff and employees.
Documents required for sponsorship licence application
The required document list for sponsor licence from the home office is extensive and will depend on whether the company or organization is registered as a public body, start-up, franchise or small and medium enterprise. As there are many sponsor licences, each type will require different supporting documents.
While the list will vary, some documents may be:
- Proof that the business is an established company, such as a VAT registration certificate, employer’s liability insurance, Certificate of Incorporation, etc
- The most recent bank statement for the business/company
- Proof of charitable status, such as Charity Commission registration, etc
- Evidence of statutory status, official funding allocation letters, organisational structure chart for public bodies, etc
- For start-ups, evidence of business premises, HMRC registration for PAYE; business bank statements, etc
- Evidence of registration with HM Revenue and customs
- Proof of ownership or lease of business premises or rental agreement papers
- Latest audited or unaudited accounts
- If applicable, evidence of registration from a regulatory body to operate lawfully in the UK such as CQC registration for health and social care, governing sporting body endorsement, registration with education regulator, etc
All sponsor licence documents need to be given within five working days of the online application. The documents should be in their original form.
Sponsor licence application costs
The fees for sponsor licences are as follows:
| Type of licence | Small or charitable sponsors | Medium or large sponsors |
| Worker | £574 | £1,579 |
| Temporary worker | £574 | £574 |
| Worker and temporary worker | £574 | £1,579 |
| Add a Worker licence to an existing Temporary Worker licence | No fee | £1,005 |
| Add a Temporary Worker licence to an existing Worker licence | No fee | No fee |
Note that there may be additional fees associated with sponsor licences, such as assigning certificates of sponsorship or paying the immigration skills charge when sponsoring certain foreign employees.
After you apply for a sponsor licence
It will normally take around eight weeks for your application to be processed by the Home Office.
During this time, you may be contacted with requests for further information or supporting documents. You must ensure you respond to these requests within the deadline specified or risk having your application rejected.
You may also receive a pre-licence compliance visit, which will be used to assess your suitability and ability to handle sponsor duties. You may or may not be informed of these in advance.
Compliance visits will typically review your record keeping, right to work check processes, SMS information input processes and other various HR practices relating to the management of sponsored workers. They may also assess the genuineness of the job vacancies being offered and interview key personnel on their responsibilities and roles.
Sponsor Licence Ratings
All businesses are assigned a sponsor licence rating, with the A-rating being the standard rating indicating that a business is meeting its duties as a sponsor and can legally sponsor foreign employees. B-ratings indicate ineligibility to meet requirements, and businesses with a B-rating cannot sponsor new workers until they upgrade back to an A-rating.
A-Rating
The default rating for businesses to operate with a normal sponsor licence is the A-rating.
With an A-rating, you will be able to assign certificates of sponsorship to prospective employees. Your business will also be logged in the Home Office’s register of licenced sponsors.
You do not have to do anything specific to achieve an A-rating; your business will automatically receive an A-rating when your application for a sponsor licence is approved.
The only exception to this is if you’re sponsoring an employee on a UK Expansion Worker visa. In this case, you’ll receive a provisional rating rather than an A-rating (assuming that your authorising officer is not located in the UK).
With a provisional rating, you will only have the ability to assign one certificate of sponsorship, which should be assigned to your authorising officer to allow them to enter the UK.
After this has occurred, you can then use the SMS to upgrade to an A-rating and assign more certificates of sponsorship.
B-Rating
Your business will be given a B-rating if you fail to meet the various responsibilities that you have as a sponsor of foreign workers.
While your business has a B-rating, you will not be able to grant any new certificates of sponsorship to workers.
You will only be able to grant new certificates once you have taken action to bring your business up to the requirements set out by UK Visas and Immigration (UKVI).
You can do this via an action plan supplied by UKVI. This action plan costs £1,579.
If you’ve followed all the steps as outlined in the action plan to bring your business up to standard, you will be upgraded to an A-rating again.
You may be at risk of losing your sponsor licence if all the steps are not completed.
Sponsor Licence Application Processing Time
After you submit your application for a sponsor licence, it will normally take UKVI up to 8 weeks to process it.
If you wish to receive a faster decision on your application, you may be able to pay an additional fee for priority processing.
This will cost £500 and will ensure that your application is processed within 10 working days.
There is a limited number of allocated priority processing slots available each day, and are given on a first-come, first-serve basis.
What are the Sponsorship Management Roles?
As part of the sponsor licence application, company’s/businesses need to appoint people within your business to manage the sponsorship process when you apply for a licence through the SMS.
The specific roles required are:
- A key contact who will act as the main point of contact with UK Visas and Immigration.
- An authorizing officer should be a person in a senior role. They will be responsible for the actions of the staff and representatives
- A level 1 user, who will be responsible for the day-to-day management of the sponsor licence
Depending on the business, these roles may be held by just one person. At least one level 1 user has to be an employee of the company, whereas other levels 1 and level 2 users could be employed by a third-party organization.
Every person who works within the sponsorship process will need to undergo certain checks, including any unspent criminal convictions and whether the person has been reported to the UKVI.
Check whether your worker needs an ATAS certificate
Certain types of work or research in the UK will require an Academic Technology Approval Scheme (ATAS) certificate in order for foreign workers to participate.
ATAS certificates will be required for foreign workers if all of the following are true:
- You have a Student sponsor licence
- You’re sponsoring the worker in a relevant occupation code
- The worker will be carrying out research at PhD level or above in a relevant subject listed in the sponsor licence guidance material
- The worker’s nationality is not exempt from needing an ATAS certificate
If the worker being sponsored does not need an ATAS certificate because they will not be doing research at PhD level or above in a relevant subject but all of the other points still apply, an explanation note will have to be added when applying for their certificate of sponsorship.
If the worker requires an ATAS certificate, you must tell them to apply for one and include it in their visa application. Copies of the certificate must also be kept for your records.
Sponsor licence audit
At any time while you hold a valid sponsor licence, you may undergo a sponsor licence audit and compliance visit from the Home Office.
These audits will comprehensively assess your organisation’s adherence to the five key areas of compliance, which are as follows:
- Monitoring immigration status and preventing illegal employment
- Maintaining key contact details for sponsored workers
- Record keeping for employees
- Tracking and monitoring of systems such as annual leave and absences
- General sponsor duties
Audits will typically consist of interviews with key personnel such as your Authorising Officer and thorough checks of your files and records.
Audits may occur randomly or in response to a specific concern that has been raised about your organisation. If you fail an audit, your sponsor licence may be cancelled or revoked, resulting in the loss of employment of your employees.
What is a certificate of sponsorship?
Certificates of sponsorship (CoS) are a key document when sponsoring foreign workers. Each foreign worker you sponsor will have to be granted a valid CoS in order to apply for their visa.
Each CoS comes with a unique number that is assigned to the worker. The CoS will also hold other key information such as the details of the worker being sponsored, the job role, its salary, and information about the employer who granted or applied for the CoS.
There are two types of CoS:
- Defined certificates are for workers applying for the Skilled Worker visa from outside the UK.
- Undefined certificates are for workers applying for the Skilled Worker visa from inside the UK and workers on all other visa routes.
Certificates must be used in a visa application within three months of being assigned to a worker.
What are the responsibilities of a Sponsor Licence holder?
These responsibilities include:
- Confirming that any foreign workers coming to work have the necessary skills and qualifications for the role and the ability to prove it
- Assign Certificate of Sponsorship to workers when the job is suitable for sponsorship
- to Inform the UKVI if your employee is not complying with the conditions and terms of the visa
Sponsor licence priority service
If you need your application for a sponsor licence processed quicker than the usual turnaround time, you may be able to apply via the pre-licence priority service.
This priority service ensures that your application will be processed within ten working days.
To be eligible for this service, you must have:
- Applied for a sponsor licence by registering and completing the online application form on the Home Office Website
- Have paid the application fee and the priority service fee
- Have submitted your submission sheet and all mandatory and supplementary documents for the work routes you are applying for
In addition, you must not be applying for one of the listed ineligible visa routes for the priority service. These visa routes that are ineligible for the priority service may change at any time, so it’s important to check up-to-date guidance when applying.
The priority service costs £500 to apply for. You can apply for the priority service by opting in to this when submitting your application for a sponsor licence.
How to check sponsor licence status
An important part of being able to continuously sponsor foreign workers is maintaining your status as a licensed sponsor.
The easiest way to check the licence status of any business or organisation is to refer to the official Home Office register of licensed sponsors. This is a comprehensive list of every single licensed sponsor in the UK, and lists key information such as the organisation’s trading name, where they are located, their sponsor rating and which visa route they are eligible to sponsor for.
Sponsor licence statuses can also be checked internally through the sponsor management system.
Immigration skills charge
You may have to pay the immigration skills charge when assigning a CoS to certain types of workers.
This charge must be paid if the foreign employee you’re sponsoring is applying from outside the UK to work in the UK for 6 months or more, or from inside the UK for a visa for any length of time.
You may be exempt from having to pay the charge if the foreign worker will be working in certain occupation codes, or if the worker first received a CoS before 6 April 2017.
The fees for the immigration skills charge are as follows:
| Period of time | Small or charitable sponsors | Medium or large sponsors |
| First 12 months | £364 | £1,000 |
| Each additional 6 months | £500 | £182 |
You may be eligible for a refund on your skills charge if the worker’s application is refused or withdrawn, or it is successful but they do not end up coming to work for your organisation.
Sponsor licence guidance: application tips
There are a few key tips that organisations may wish to keep in mind when applying for a sponsor licence in order to ensure that their application is processed smoothly and without any issues.
These include the following. You should:
- Carefully check through the complete list of required documents and supplementary evidence for your application to ensure you haven’t missed any key documents out.
- Ensure you have all systems and processes in place to manage your sponsor licence and carry out your duties before you submit your application, not after.
- Respond to any requests for information or communications from the Home Office quickly and courteously.
- Demonstrate your commitment to sponsor licence compliance by ensuring that all staff and systems in your business are kept well-trained and up to date on sponsor licence responsibilities.
- Be prepared at any time for compliance checks and audits from the Home Office.
Sponsor licence benefits
The benefits of obtaining a sponsor licence in the UK are various. While the specific benefits may vary from business to business, the general benefits of obtaining a licence to sponsor foreign workers include the following:
- Access to a much wider talent pool beyond simply that of the UK, making it easier to hire employees for highly specialised or niche roles.
- Increased diversity in the workforce, helping to foster a more innovative and varied approach to problem-solving and performance.
- Increased competitive edge in the market by opening your business up to wider skillsets and professional experiences.
- Easier inroads to international expansion, utilising international perspectives and insider knowledge of foreign markets to help jumpstart ambitious expansion plans.
- Greater levels of trust and credibility, demonstrated by your organisation’s capability of managing complex sponsor licence management systems.
How can Total Law help?
Maintaining a sponsor licence can be a difficult and challenging responsibility to take on, especially given that running a business is in itself a very challenging task.
If you’re looking for additional help or assistance with becoming a licensed sponsor for foreign workers in the UK, Total Law can help.
We offer complete and comprehensive corporate immigration assistance to businesses in the UK, helping them find the best ways to expand and hire foreign workers based on their individual needs. Our expert legal advisers will work with you to assess your business’ unique requirements and needs, advising on Home Office and UK immigration guidelines to secure the right foreign talent for your workforce.
We can guide you through every step of the way, including offering ongoing support and advice as you continue to hire foreign workers and enhance your operations.
For more information about the services we offer and how we can help your business, call us today on +44 (0) 333 305 9375 or reach out to us online.
Advice Package
Comprehensive immigration advice tailored to your circumstances and goals.
Application Package
Designed to make your visa application as smooth and stress-free as possible.
Fast Track Package
Premium application service that ensures your visa application is submitted to meet your deadline.
Appeal Package
Ensure you have the greatest chance of a successful appeal. We will represent you in any case.
The Advice Package
During this untimed Advice Session with our professional immigration lawyers in London, you will receive our comprehensive advice, completely tailored to your needs and your situation.
The Application Package
With our Application Package, your dedicated immigration lawyer will advise you on your application process and eligibility. Your caseworker will then complete and submit your forms to the Home Office on your behalf.
The Fast Track Package
Our Fast-Track Application Package is a premium service for those who need to submit their application in time with their deadlines. Your case will become a top priority for our lawyers and you will benefit from our highest-quality services.
The Appeal Package
By choosing our Appeal Package, you can rely on our lawyers’ legal knowledge and experience to ensure you have the highest chance of a successful appeal. We will also fully represent you in any hearings/tribunals.
Related pages for your continued reading.
Frequently Asked Questions
A Sponsor licence number is a unique number or code that is issued to Sponsor licence holders. As a Skilled Worker or Temporary Worker, the Sponsor licence number will be located on your Certificate of Sponsorship.
The Home Office may refuse the application for a variety of reasons which will be explained to you in the refusal letter.
The most common reasons include:
- Business’ failure to pass the Home Office’s Compliance Audit
- Business’ failure to retain sufficient documentation
- The business has not informed the Home Office of significant changes to their workforce
- The business has not responded to the Home Office’s enquiries
- Business does not pass its ‘genuineness test’
- Business does not comply with the Home Office’s security standards
A Sponsor licence lasts for four years if it’s due to expire before 6th April 2024. One can extend the licence if the sponsor meets the eligibility requirements.
If the sponsor licence is due for renewal on or after 6th April 2024, you will not need to manually renew or pay a fee. It will be automatically renewed, and it will be valid for 10 years.
Should there be any changes to your business/organization, the UKVI has to be told within 20 working days.
If you do not, the sponsor licence could be affected.
Examples of Significant changes could be:
- The business has gone under, stopped, or stopped trading
- The type of business has changed
- The business is undergoing a merger or take-over
- If your business moves or allocated roles change
Your sponsor licence number can be found by logging into your sponsor management system and referring to the licence summary page. Alternatively, it can also be found on the letter you receive from the Home Office when your application for a licence is approved.
