Sponsor Licence for Companies

If you are a company operating in the United Kingdom and intend to employ an individual from outside the UK or someone who does not have the right to work in the UK, you must first obtain a sponsor licence. A sponsor licence enables employers to legally sponsor such individuals. Before an employee can enter the UK to work or continue residing in the UK for employment purposes, they must receive a job offer from a licensed sponsor, verified through a Certificate of Sponsorship (CoS).

A sponsor licence is a privilege rather than a right. Therefore, once granted, it comes with a set of duties and compliance requirements that the employer must strictly follow. The category of licence you apply for, similar to visa types, should align with your company’s employment needs. After clearly identifying your workforce requirements, you may proceed to apply under the most appropriate licence category.

If your organisation meets the eligibility criteria, you may obtain a sponsor licence for more than one route. For instance, it is possible to hold a licence under both the Skilled Worker and Temporary Worker routes. This provides greater flexibility and breadth in your recruitment strategy.

Types of Sponsor Licences:

There are two main categories of sponsor licences you can apply for in the United Kingdom: the Worker Licence and the Temporary Worker Licence.

The Worker Licence covers sponsorship routes designed to meet long-term and permanent employment needs. The Temporary Worker Licence, on the other hand, is intended for temporary or project-based employment. Both categories include subcategories such as Skilled Worker, Seasonal Worker, and Creative Worker, among others.

Before selecting which type of sponsor licence to apply for, it is essential to carefully assess your company’s employment requirements and obligations. Each category is tailored to specific sectors and types of employment, and choosing the correct route is critical to the success of your application.

For further information or to receive professional guidance, please do not hesitate to contact us.

Eligibility for a Sponsor Licence:

To obtain a sponsor licence in the United Kingdom, your application will be assessed against specific eligibility criteria outlined in the relevant visa guidance. These criteria include the following key elements:

Human Resources and Management Systems:

You must have a Human Resources department or an equivalent system in place to fulfil your sponsorship duties. This system is essential for monitoring sponsored employees and ensuring compliance with the obligations set by the Home Office.

Suitability for the Licence Route:

You must be capable of meeting the specific requirements of the licence route for which you are applying. For example:

If applying under the Skilled Worker route, you must be able to offer genuine employment that meets the salary threshold.

If applying under the Intra-Company Transfer route, employees must have worked for your overseas business for a specified period.

Application Requirements for Obtaining a Sponsor Licence:

Operating a UK-Based Business:

To be eligible to apply, you must own and operate a business in the United Kingdom. This business can be structured as either a sole proprietorship or a limited company.

Compliance with Sponsorship History:

You must not have had a sponsor licence revoked by the Home Office within the past 12 months.

Completion of the Application Form:

You are required to complete an online application form to initiate your sponsor licence application. All information provided regarding the sponsorship system must be accurate and complete.

Appointment of Key Personnel:

As part of your application, you must designate individuals within your organisation who will be responsible for managing the sponsorship process. The details of these key personnel must be included in the form.

Payment of Application Fee:

To process your application, you must pay the applicable sponsor licence fee. The fee varies depending on the specific route under which you are applying.

Submission of Supporting Documents:

Upon completion of the application form, you must submit supporting documentation related to your business to the Home Office via email.

Assessment Process:

Your application will be assessed by the Home Office based on the type of licence you have applied for and the accuracy and sufficiency of the documents provided.

Sponsor Licence System Users:

When applying for a sponsor licence, you must appoint individuals within your organisation who will be responsible for managing all matters related to the licence. These individuals will liaise with the Home Office and oversee the operation of the licence. The roles to be assigned are as follows:

Authorising Officer

This individual must be the most senior person in your organisation with responsibility for the sponsor licence. They are accountable for the overall management of the sponsorship system and the actions of all other users listed below. The Authorising Officer must retain this role for the entire duration of the licence.

Key Contact

The Key Contact acts as the main point of communication between your organisation and the Home Office. This person does not have direct access to the sponsorship management system (SMS). They may be someone internal to your business or an external representative authorised to act on your behalf.

Level 1 User

The Level 1 User is responsible for the day-to-day management of your sponsorship licence. This role operates under the authority of the Authorising Officer, who remains fully accountable for all actions performed by the Level 1 User.

If this is your first time applying for a licence, your appointed Level 1 User must be someone with no restrictions on their right to work in the UK, such as a British citizen, someone with Indefinite Leave to Remain (ILR), or another immigration status that permits full work rights in the UK.

After obtaining the licence, you may also appoint Level 1 Users from authorised organisations legally entitled to represent you.

Level 2 User

Level 2 Users operate under the supervision of a Level 1 User and have limited access rights within the system. Their functionality is restricted to certain tasks and cannot perform the full range of actions available to Level 1 Users.

Sponsor Ratings

When you are first granted a sponsor licence, your licence will be automatically classified as an A-rating. This signifies that you have met the Home Office’s compliance standards following their initial review. However, your licence will be subject to ongoing inspections, and your rating may change depending on the outcome of these compliance checks.

If your licence is downgraded to a B-rating, you will be required to complete specific improvement measures set by the Home Office. Failure to meet these requirements within the prescribed timeframe may result in the revocation of your sponsor licence.

While holding a B-rating, you will not be able to assign new Certificates of Sponsorship (CoS) for recruiting new migrant workers. However, you may still issue CoS for your existing sponsored workers—for example, in cases where they are applying for a visa extension.

Costs

The sponsor licence application fee depends on the size of your company and the specific sponsorship route you select. For more detailed information, please contact us directly.

Licence Fees

You must pay a fee when submitting your application. The fee depends on the type of licence you are applying for and the nature of your organisation.

In addition to the licence application fee, you may be required to pay additional fees depending on the category you wish to be licensed for. If you would like further details on this matter, please contact us directly.

For tailored guidance and support regarding the Sponsor Licence Application Process, please contact us directly.