Sponsor License Requirements UK

If your UK business wants to hire skilled workers from overseas, you'll need a Sponsor Licence from the Home Office. But before you apply, it's important to understand the key requirements. From proving your business is genuine to having the right HR systems in place, meeting these conditions is essential for a successful application.

To apply for a sponsor licence, your business must meet key requirements to show it's genuine, legally operating, and ready to handle sponsorship duties.

If you need help with your Sponsor Licence application, call our business immigration solicitor at 0208 616 5535 for expert advice and guidance.

Table of Contents

What Is a UK Sponsor Licence?

A UK Sponsor Licence is a formal approval from the Home Office that allows a UK-based business or organisation to legally hire foreign workers who do not already have the right to work in the UK.

With a sponsor licence, your business can issue Certificates of Sponsorship (CoS), which skilled workers use to apply for their UK work visa.

Who Needs a Sponsor Licence?

Any UK organisation that wants to hire non-UK citizens (including EU nationals who arrived after Brexit) under a work visa route needs a sponsorship licence.

Whether you're a small company, a large corporation, a startup, or even a charity, if you plan to employ foreign nationals under routes like the Skilled Worker visa, you must be licensed by the Home Office.

Without a Sponsor Licence, you can't legally sponsor or employ non-UK workers who require a visa to work in the UK. It's a vital tool for employers struggling to fill roles from the domestic workforce, especially in sectors like healthcare, tech, construction, and hospitality.

What Are the Sponsor Licence Requirements?

A Sponsor Licence application requires proof that your business is legitimate, actively operating in the UK, and capable of fulfilling its sponsor duties.

Before applying, your business must meet several Sponsor Licence eligibility requirements. These include:

• Being a genuine and legally operating UK business
• Having a reliable HR and compliance system
• Demonstrating a genuine need for overseas skilled workers
• Appointing key personnel (e.g. Level 1 User)
• No unspent criminal convictions
• Submitting the correct supporting documents
• Commitment to comply with sponsor duties throughout the licence period

Genuine UK Business Requirements for Sponsor Licence

To qualify for a sponsor licence, your business must be genuine, legally registered and operating lawfully within the UK, and have a bona fide trading presence.

Before applying for a Sponsor Licence, your business must meet certain criteria to prove it's a legitimate and active UK operation. This includes:

• Being properly registered and legally operating in the UK
• Listed with Companies House (or the relevant authority)
• Actively trading, with genuine business activity
• Having a physical UK premises
• Holding a UK business bank account
• Providing evidence of trading history, such as contracts, invoices, or accounts
• Demonstrating a genuine need to employ skilled overseas workers

HR and Compliance System Requirements for a UK Sponsor Licence

To apply for a Sponsor Licence, you'll need to show that your business has HR & Compliance Systems in place to track and manage sponsored workers effectively. This includes being able to:

• Record and monitor employee attendance
• Keep contact details accurate and up to date
• Maintain employment and immigration documentation
• Report changes such as absences, resignations, or changes in job role
• Track visa expiry dates and take action in advance
• Carry out and record regular right-to-work checks

These are essential because sponsors are held accountable for the compliance of their sponsored staff.

Key Personnel Requirements for a UK Sponsor Licence

When applying for a UK Sponsor Licence, your business must appoint specific individuals, known as key personnel, to manage the licence and ensure everything runs smoothly. These roles are essential for keeping your sponsorship duties on track and for staying compliant with Home Office regulations.

All Key Personnel:

• Must be based in the UK
• Usually, must be a paid staff member or office holder
• Cannot be bankrupt or subject to any restrictions
• Must not have a history of non-compliance with sponsor rules

You'll need to assign the following roles:

1. Authorising Officer

A senior figure in your company, such as a director or partner, who takes overall responsibility for compliance. They ensure your business is meeting all sponsorship duties and legal obligations.

2. Key Contact

This person acts as the main link between your business and the Home Office. They handle official communications and help with any queries or updates about your licence.

3. Level 1 User

This is your day-to-day manager of the Sponsor Management System (SMS). They'll handle tasks like assigning Certificates of Sponsorship (CoS), updating worker records, and reporting changes to the Home Office.

At least one Level 1 User must be an employee, partner, or director of the organisation, and they must be either a British citizen or someone with settled status in the UK.

Appointing the right key personnel is crucial. It ensures your licence is properly managed and keeps your business on the right side of immigration law.

Understand Your Ongoing Sponsor Duties

Getting a Sponsor Licence is just the first step; what really matters is how you manage your responsibilities afterwards. As a licensed sponsor, your business must stay compliant with ongoing duties set by the UK Home Office. These are in place to ensure that both you and your sponsored workers follow immigration rules.

Monitor and Maintain Accurate Records

You must keep up-to-date records for each sponsored employee. This includes their current contact details, job titles, salaries, copies of their passports and visas, and any changes in their employment.

Report Changes to the Home Office

Using the Sponsor Management System (SMS), you must notify UK Visas and Immigration (UKVI) of important changes. For example, if a sponsored worker doesn't show up for work, leaves their job, or if their job role or salary changes, you must report it promptly.

Assign Certificates of Sponsorship (CoS)

You'll be responsible for issuing Certificates of Sponsorship to eligible workers. This is done via SMS and must be handled accurately and responsibly.

Pay the Immigration Skills Charge

In most cases, you'll also need to pay the Immigration Skills Charge when assigning a CoS. This helps fund the development of the UK's domestic workforce.

Failing to meet these ongoing duties can result in serious consequences, such as fines, your licence being downgraded, suspended, or even revoked.

Staying on top of your sponsor duties protects your business and your sponsored employees' future in the UK.

What Documents Do You Need for a Sponsor Licence Application?

When applying for a Sponsor Licence in the UK, you must provide documents to prove your business is genuine, legally operating, and capable of managing sponsored workers.

Here's a simplified checklist of commonly required documents:

• Recent business bank statements
• VAT registration certificate (if applicable)
• HMRC PAYE and Accounts Office reference numbers
• Certificate of incorporation (for limited companies)
• Proof of business premises (lease, ownership, or utility bill)
• Latest audited or unaudited accounts
• Employer's liability insurance (minimum £5 million)
• Professional indemnity insurance (if required)
• Company structure or organisation chart
• Signed submission sheet from your online application
• Your HR policies and procedures
• Evidence of HR systems to monitor right-to-work and staff absences

Additional documents may be needed depending on your business type and the type of worker you plan to sponsor. Check out our comprehensive list of supporting documents for a Sponsor Licence application.

What Happens If I Don't Meet My Sponsor Duties?

Failing to meet your ongoing sponsor duties can lead to serious consequences, including fines, licence suspension, or revocation. Once you have a Sponsor Licence, you must continue to monitor, report, and update the Home Office on changes related to your sponsored workers. Staying compliant helps protect your business and your employees' visa status.

How Vanguard Solicitors Can Help with Your Sponsor Licence Application

Our experienced sponsorship licence solicitors support UK businesses at every stage of the Sponsor Licence application process by offering:

• Clear advice on your eligibility and sponsorship options
• Help choosing the right sponsorship category for your needs
• Assistance in preparing and organising all required supporting documents
• Completion and submission of your application to UK Visas and Immigration (UKVI)
• Ongoing updates and legal support throughout the process
• Direct communication with UKVI on your behalf to resolve queries
• Practical compliance advice to help you meet your ongoing sponsor duties

Need Help Applying for a Sponsor Licence?

Speak to Vanguard Solicitors on 0208 616 5535 for expert support with eligibility, documentation, and submitting your Sponsor Licence application.

From eligibility assessment to submission of your UK Sponsor Licence application, our business immigration solicitors in London are here to help.