Sponsor Licence Application – Full Guide for UK Employers

To hire skilled overseas workers in the UK, your business must apply for a Sponsor Licence from the UK Home Office. The Sponsor Licence application is a mandatory requirement for employing non-UK workers, enabling you to recruit global talent and enhance your team’s skills. Without an approved licence, you cannot legally sponsor foreign nationals.

A Sponsor Licence gives UK employers the right to legally hire non-UK workers under visas like the Skilled Worker visa, Scale-Up visa, or other work based immigration routes. Without it, you cannot issue Certificates of Sponsorship (CoS) to potential employees, which means they won’t be able to apply for a visa to work for your company.

In this complete guide, we’ll go through who needs a sponsor licence, what documents you’ll need, how to apply, what it costs, and how to stay compliant once you’re licensed.

What Is a Sponsor Licence?

A Sponsor Licence is official permission from the Home Office that allows UK employers to sponsor migrant workers. It’s a legal requirement for hiring overseas staff on most work visas.

There are two main types of licences:

• Worker licence: Covers Skilled Worker visas, Senior or Specialist Worker visas, and other long-term routes.
• Temporary Worker licence: For hiring people under routes like Seasonal Workers or Charity Workers.

With a Sponsor Licence, you can issue Certificates of Sponsorship so your chosen workers can apply for their visa. But having a licence also means taking on important duties, such as checking your sponsored workers’ right to work and reporting certain changes to UKVI.

Who Needs a Sponsor Licence?

If your business wants to employ staff who do not have the right to work in the UK, you will almost always need a sponsor licence. This applies to:

• Companies looking to hire overseas workers under Skilled Worker, Scale-up, Global Business Mobility, or T2 Minister of Religion visas
• Schools, charities, care homes, and other organisations bringing in international employees
• Start-ups and growing businesses expanding into the UK market who need overseas talent

Even if you only plan to hire one overseas worker, you still need to make a Sponsor Licence Application. Trying to employ someone without a licence can lead to heavy fines and serious legal consequences.

Eligibility Criteria for Sponsor Licence Applications

Before you apply, your business must meet certain Home Office criteria. This shows you’re a trustworthy employer who can handle the responsibilities of sponsoring workers.

Requirements for Your Business

Be a genuine organisation operating lawfully in the UK 

• Have at least one employee in key roles like Authorising Officer, Key Contact, and Level 1 User 
• Prove a genuine need to hire non-UK workers for real vacancies 
• Have no unspent criminal convictions for immigration offences, fraud, or certain other crimes 
• Demonstrate robust HR systems that can monitor and report on your sponsored workers

Failing to meet these requirements is one of the most common reasons sponsor licence applications are refused.

How to Apply for a Sponsor Licence

Applying for a sponsor licence takes careful preparation and attention to detail. Follow these steps for the best chance of success:

Application Process

• Online application: Complete the official form on the UKVI website, providing details about your business, HR processes, and why you want to hire overseas workers.
• Pay the application fee: The amount depends on your business size.
• Prepare and submit documents: Upload or send your supporting documents within five working days of submitting the application.
• Home Office assessment: UKVI will review your application, documents, and HR systems. They may conduct a pre-licence compliance visit.
• Decision: You’ll usually receive a decision within eight weeks, although some cases can take longer.

Planning your Sponsor Licence Application carefully from the start can save you time and money later on.

Documents You Need

To support your application, you’ll need to provide a set of documents proving your business is genuine and compliant. Common documents include:

• • Corporate bank statements for the last three months
  • Proof of business premises, like a lease agreement or property ownership document

• VAT registration certificate

• Employer’s liability insurance certificate (must provide at least £5 million cover)
• Latest accounts or annual report, if available

Depending on your business type, you may need additional documents. Always check the latest guidance from UKVI.

Application Fees for Sponsor Licences

The Home Office charges different fees depending on the size of your business:

• Small businesses or charities: £574
• Medium or large organisations: £1,579

Remember, you might also need to pay additional fees later when you assign a Certificate of Sponsorship to each worker you want to sponsor.

How Long Does It Take to Get a Sponsor Licence?

Most Sponsor Licence Applications are processed in about eight weeks. However, processing can take longer if UKVI needs more information or decides to inspect your business.

If your hiring plans are urgent, you might be able to apply for priority processing. This service costs extra but can reduce decision times to around ten working days. Priority slots are limited, so you’ll need to act quickly if you want this option.

Duties and Responsibilities Once Licensed

Getting your sponsor licence is just the first step. You’ll have ongoing responsibilities to make sure you keep your licence and avoid penalties.

Here’s what you must do:

Keep accurate records of every sponsored worker’s contact details, pay, and right to work documents 

• Report changes, such as if a sponsored employee stops coming to work, leaves your company, or changes job roles, within ten working days 
• Renew your sponsor licence every four years 
• Follow all UK immigration laws and sponsor guidance

Failure to meet these duties can lead to your licence being suspended or revoked, which means you can no longer sponsor overseas workers.

Common Reasons for Sponsor Licence Refusal

Many businesses are surprised when their Sponsor Licence Application is refused. Here are the most common reasons:

• Incomplete or inaccurate application forms
• Missing or incorrect supporting documents
• Not being able to show a genuine vacancy or need for overseas staff 
• HR systems that can’t track employees’ status, leading UKVI to believe you won’t comply with sponsorship duties

Avoiding these mistakes is essential to getting your licence approved.

FAQs – Sponsor Licence Applications

What is a sponsor licence?

A sponsor licence is official permission from the Home Office allowing UK employers to hire workers from outside the UK on visas like the Skilled Worker visa.

How much does it cost to get a sponsor licence?

It costs £574 if you’re a small business or charity, or £1,579 if you’re a medium or large employer.

How long is a sponsor licence valid?

A sponsor licence lasts for four years. You must apply to renew it before it expires to keep hiring overseas workers.

Can I hire overseas staff without a sponsor licence?

No. Without a valid sponsor licence, you can’t issue Certificates of Sponsorship, and your overseas hires won’t be able to get a work visa.

Making a Sponsor Licence Application is a crucial step if you want your business to benefit from global talent. With the right preparation, you can meet Home Office requirements, avoid common pitfalls, and secure your licence.

Once you’re licensed, you can issue Certificates of Sponsorship, hire overseas staff legally, and focus on growing your business with a wider pool of candidates.

But remember: getting a sponsor licence also brings important responsibilities. Staying compliant is key to protecting your business and the future of your employees.

Need a Sponsor Licence? Trust Solicitors in Manchester.

Getting your Sponsor Licence right is crucial – and our team at Solicitors in Manchester makes it simple. We specialise in helping UK employers just like you.

• Get your Sponsor Licence approved first time 
• Avoid common mistakes that cause delays
• Full compliance with UKVI rules 
• Dedicated caseworker for your application

Call Solicitors in Manchester today  0161 464 4140 or book an appointment

“Last year alone, we successfully helped over 150 businesses with their Sponsor Licence Applications. Now let’s make yours our next success story.”

Why choose Solicitors in Manchester?

Manchester based immigration law experts who know the local business landscape.

• Fixed fees with no hidden costs
• Plain English advice no confusing legal jargon
• Ongoing support even after approval

Don’t risk application refusal or delays contact Solicitors in Manchester today for your free initial consultation.