Sponsor licence Application
Sponsor licence Application Guide
UK Sponsor licence Application
Sponsor licence Application Guidance For Employers
Your company must apply for a sponsor licence before hiring qualified foreign workers. The Home Office grants a sponsor licence to an organisation so that it can hire foreign nationals for its business. Your company in UK will be able to hire talent from all over the world only, if you become a licenced sponsor.
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What is a Sponsor licence?
The official permission given by the UK Home Office to a UK organisation to sponsor non-UK citizens under specific work visa pathways is known as a sponsor licence. For businesses of all sizes in every sector of the UK economy, sponsor licences are now operationally essential due to the skills and labor shortages in the post-Brexit labour market.
A key component of the UK’s immigration system, sponsor licences are intended to control and streamline the hiring of highly qualified foreign workers. An organisation can sponsor employees in its operations with the sponsorship licence. The only people who can be licenced “sponsors” are organisations.
Employers apply to the Home Office for a sponsor licence in order to demonstrate their eligibility and compliance with immigration regulations.
Once approved, it enables a company to provide Certificates of Sponsorship to potential workers, allowing them to apply for a work visa under the appropriate immigration category, like the skilledworker route.
Sponsor licences were previously granted for a period of four years, after which the licencee had to apply for a renewal in order to keep their licence. But in April 2024, the necessity to renew your licence was eliminated, therefore you won’t have to do so.
Who Requires a Sponsor licence?
A sponsor licence is required for any UK organisation that plans to hire people without proper immigration status, a valid settled status in the UK, or authorisation to work in the UK. Regardless of the organisations size or the number of foreign employees it intends to hire, this condition is applicable.
To sponsor foreign national workers under sponsored visa pathways, the following organisations will need a sponsor licence:
Big Businesses
Educational Institutions
Startups
SMEs, or small and medium-sized businesses
Non-profit organisations and charities
The industries
The ability to attract foreign talent is very important for some businesses, hence sponsor licences are essential to recruitment efforts:
Technology and Information Technology (IT)
Medical Care
Construction and Engineering
Services Related to Finance
Catering and Hospitality
Research and Education
Sponsor licence Application Eligibility Criteria
In order to apply for a sponsor licence, your business needs to have:
- a well-established company in the UK.
- a set address for the office.
- the capacity to provide actual employment that satisfies the necessary skill level and any pay scale for the route or routes you are seeking for.
- An appropriate worker to designate as the "Authorising Officer." This individual can assign daily immigration administration to a coworker, but they will be ultimately responsible for the Sponsor licence.
- No pending criminal convictions for immigration offenses or specific other offenses like money laundering or fraud.
Key Personnel's Eligibility Criteria for Sponsorship licence UK
When you apply for a sponsor licence, UKVI will need the names of any significant individuals. Key personnel must be British, unrelated to the applicant, employed, and free of pending criminal charges.
Key persons can be divided into four categories:
- An authorising officer: a senior official who oversees the licence, handles any immigration issues, and ensures that all obligations pertaining to the UK sponsorship licence are fulfilled.
- Key contact: An individual who the Home Office regards as a "key contact."
- The individuals who will oversee the SMS system on a daily basis termed as Level 1 and Level 2 users.
A company that wishes to apply for a sponsor licence as a PLC, Ltd, LLP, or sole trader must be legitimate and actively operating in the UK. To put it another way, they are law-abiding businesses that have a presence in the UK. To have a presence in the UK, a company must be headquartered and established there. A limited corporation, or LLP, for instance, needs to be registered with Companies House. For the kind of business they operate out of the working address, they also need the appropriate planning approval or permission from the local planning authority.
It is easy for a new business to apply for a sponsor licence. Companies who have only been operating in the UK for 18 months or less, however, are need to provide documentation proving they have an open corporate bank account with a UK bank that is both FCA and PRA registered.
A corporation may need to fulfill additional requirements based on the type of sponsor licence it desires in order to qualify. Companies that wish to apply for a UK Expansion Worker funding licence, for example, must have a “footprint” in the UK but are not permitted to conduct business there.
To obtain a UK sponsor licence, a company must demonstrate that
- It is trustworthy, reliable, and honest.
- They must also be capable of performing their responsibilities as a licenced business owner.
- The business must, in particular, have the appropriate HR resources available to carry out its sponsoring duties.
- Be ready for any shared or unforeseen UKVI compliance examination at all times.
- Do not currently face any criminal accusations related to tax evasion or immigration violations
- has no evidence of breaking the guidelines for previous sponsorship permits.
- They haven't lost their business licence in the last 12 months.
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The Home Office provides a list of all the documentation that applicants for a UK sponsor licensing might need to provide in Appendix A. You will often be required to submit a minimum of four papers. If you are a public organisation recognised by the UK government, you may not be required to submit four papers, as stated in Appendix A.
You might be required to submit some or all of the following documents, depending on your business and the kind of licence you require (please note that this list is not comprehensive and is only a selection of the documents you may be requested to provide):
- Evidence of your company's existence and operation, such as the financial documents from the most recent year.
- Copies of contracts for products or services spanning at least the previous 12 months must be included with the sponsorship licence application.
- Evidence proving you presently hold a business bank account with a UK bank subject to the Prudential Regulation Authority and the Financial Conduct Authority
- VAT Franchise Agreement registration certificate
- Evidence of registration
- An endorsement by a regulatory agency
- When applying for sponsorship as a religious worker, you must include details about your parent organisation and your relationship to it, if any; a hierarchy chart that illustrates your role within the organisation; the number of adults in your congregation; the addresses of the locations where you regularly meet; and the days and times you intend to worship.
- Proof of a link to a qualifying foreign business through a joint venture agreement or shared ownership or control
- Evidence of your postgraduate studies
- Proof of your "footprint" in the United Kingdom
- Evidence of your international trade
- Evidence that you intend to grow in the UK
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You could also be required to provide any of the following papers in addition to the ones listed above:
- Chart of organisational hierarchy
- Employer's liability insurance certificate (from an insurer approved by the Financial Conduct Authority) that offers coverage of at least £5 million
Proof of following listing:
- AIM market for the London Stock Exchange
- Being a foreign business listed on the London Stock Exchange, multinational companies on stock exchanges authorised by the Financial Conduct Authority
- Company tax return (CT620 or CT600) or self-assessment tax return to HMRC (SA300 or SA302)
- a licence from the local government or court to serve alcohol on your property.
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The business must complete the Appendix A sponsor licence form in order to submit an application for a sponsor licence.
The application fee varies according to the size of the business, as shown in the table below.
licence | Small or charitable sponsor fee | Medium or large sponsor fee |
Worker | £536 | £1,476 |
Temporary Worker | £536 | £536 |
Worker and Temporary Worker | £536 | £1,476 |
Worker added to existing Temporary Worker | £0 | £940 |
Temporary Worker added to existing Worker | £0 | £0 |
Your company must fulfill at least two of the following requirements in order to be considered as a small or nonprofit sponsor:
- Make at least £10.2 million in revenue annually.
- possess assets worth less than £5.1 million.
- Have fewer than fifty employees
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To become a sponsor, a company needs to complete the following steps:
- Decide which levels or organisations it want to cover with its licence.
- Verify that it falls into each category or tier, and if so, adjust its HR procedures as needed.
- Know the "Key Personnel." These include the sponsor management system's level 1 user, level 2 user, key contact, and authorising officer.
- Assemble the appropriate paperwork to submit with the application.
- Decide how many Certificates of Sponsorship (CoS) it wants to request during the licence's first year.
- Forward hard copies of the documents and the online application to the Home Office.
- If required, get ready for and attend the Home Office site inspection to the company's offices.
- Obtain a judgment.
For more details, you can contact us. You can get assistance with your immigration process from our knowledgeable UK immigration solicitors.
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There are two primary categories of sponsor licences for businesses:
- Temporary worker licences
- Worker licences for skilled or permanent positions.
Businesses are required to indicate the sort of licence they require when submitting an application. They can only employ foreign workers for that kind of licensing after it is authorised. You can apply for multiple worker licences based on your credentials and needs.
There are particular requirements for eligibility, application procedures, and related expenses for every kind of sponsor licence. Businesses must make sure they comply with the Home Office’s standards for legitimate openings, operating legally in the UK, and having the required HR and recruitment procedures.
- Decide which levels or organisations it want to cover with its licence.
- Verify that it falls into each category or tier, and if so, adjust its HR procedures as needed.
- Know the "Key Personnel." These include the sponsor management system's level 1 user, level 2 user, key contact, and authorising officer.
- Assemble the appropriate paperwork to submit with the application.
- Decide how many Certificates of Sponsorship (CoS) it wants to request during the licence's first year.
- Forward hard copies of the documents and the online application to the Home Office.
- If required, get ready for and attend the Home Office site inspection to the company's offices.
- Obtain a judgment.
For more details, you can contact us. You can get assistance with your immigration process from our knowledgeable UK immigration solicitors.
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What is sponsor licence number and the CoS?
The Sponsorship Management System (SMS) lets someone in your organisation’s list of nominees apply for CoS. Once approved by the Home Office, which usually takes one day, the overseas worker can get a Certificate of Support (CoS) to show that they have been given a job. This can then be used to apply for a work visa.
A foreign worker must present a Certificate of Sponsorship (CoS) while applying for a work visa. This document has a sponsor licence number, which is a special reference number. A CoS is an electronic document that contains crucial information regarding the job offer, such as the nature of the work and its duration.
Anyone on your organisations list of nominees can apply for CoS through the Sponsorship Management System (SMS). The overseas worker can obtain a Certificate of Support (CoS) to verify they have been hired after being authorised by the Home Office, which typically takes one day. After that, you can use this to apply for a work visa.
The cost of a CoS can range from £25 to £239, depending on the type of licence.
What Are Sponsor licence Responsibilities?
Before being given permission to do so, the applicant corporation must show the Home Office that it understands and can fulfill its sponsor obligations. In practice, companies that sponsor must have the systems and processes in place to:
- Monitor and report absences; and notify the funding management system of any modifications.
- Verify that the sponsored employees fit the requirements for the UK sponsorship visa they wish to apply for and possess the necessary skills.
- Verify people's eligibility for employment in the UK.
- Verify and retain certain documents pertaining to recruiting foreign nationals.
The Home Office should be notified of certain events, such as the departure of a sponsored employee or changes to the firm.
The Resident Labour Market Test (RLMT), which determines if a job can be completed by a local worker before it is awarded to an overseas worker, is no longer necessary with the current approach.
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Refusal of the UK Sponsor licence Application
Getting an application for a sponsor licence, rejected can be distressing. In most cases, an application may be rejected for the reasons listed below:
- False or inaccurate documentation
- Application that is not complete
- The company's previous corporate licence was revoked.
- The additional information requested was not supplied by the company in the allotted period.
Businesses do not receive their application fee returned and are not eligible to reapply until a specific period of time has elapsed, They should attempt to have as few of their support licence applications denied as possible.
Depending on why the application was rejected, time will differ. Most firms won’t be allowed to reapply for at least six months after being rejected. You cannot go back and alter your decision if your application for a support licence is denied. You may request an official review of the decision, but this does not guarantee that it will be altered. You have the option to revoke your support licence application as a business.
What is meant by Sponsor licence Rating?
An employer’s sponsor contract may be rated as either “A” or “B.” Businesses that receive new workplace sponsorship licences will receive A+ ratings. In the future, the Home Office may drop a sponsor’s ranking to a B if it believes that a company is not performing as expected. This implies that they are no longer able to award Certificates of Sponsorship. Before they may regain their A-rating, they must also demonstrate to the Home Office that they have made the necessary adjustments.
A sponsor licence holder may have their licence revoked entirely if they receive a B rating and are unable to demonstrate to the Home Office that all compliance issues have been resolved. Any sponsored workers’ leave would be shortened in this situation. In order to restore your UK sponsor licence, you must seek immediate assistance from an immigration lawyer.
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Application to extend a sponsor's licence
Every four years, sponsoring companies must reapply for their sponsor licence. It is crucial to apply for renewal before the sponsor licence expires in order to maintain the sponsorship. Before applying, companies should also confirm that they still meet the sponsorship requirements for the path they choose to take. Additionally, they should ensure that they have all the procedures and mechanisms necessary to carry out their duties.
Those who wish to renew their sponsorship licence can do so online through the Advertising Management System. Charities and small businesses are required to pay a £536 levy. All companies are required to pay £1,476.
How can we assist?
Every four years, sponsoring companies must reapply for their sponsor licence. It is crucial to apply for renewal before the sponsor licence expires in order to maintain the sponsorship. Before applying, companies should also confirm that they still meet the sponsorship requirements for the path they choose to take. Additionally, they should ensure that they have all the procedures and mechanisms necessary to carry out their duties.
Those who wish to renew their sponsorship licence can do so online through the Advertising Management System. Charities and small businesses are required to pay a £536 levy. All companies are required to pay £1,476.
FAQ
Sponsor licence Application
How much time does it take to submit a sponsor licence application?
Applications for sponsor licences are typically processed in two months. You might be able to pay £500 for a ruling in 10 working days if you need it sooner. The quantity of these priority applications is restricted by the Home Office; they are distributed on a first-come, first-served basis, with a daily cap. You will receive instructions on how to use the priority application service after submitting your application.
In the UK, how many employees are you permitted to sponsor?
The number of skilled worker visa holders you can sponsor is unlimited under the present immigration system. Nonetheless, it is crucial to present the Home Office with an estimate that you can support. When you apply, you will be asked to estimate the number of Certificates of Sponsorship (CoS) you would require annually.
How much revenue must a company have in order to be eligible for a sponsor licence?
A company can have a sponsor licence without meeting any minimum turnover requirements. Similarly, there is no minimum number of employees or trading time.
What is the lifespan of a sponsor licence?
As long as you continue to fulfill the qualifying requirements, sponsor licences are still valid. However, your sponsor licence may be canceled if you don’t comply.
Who can apply for a sponsor licence in the UK?
A sponsor licence can be applied for by any UK business that wishes to sponsor overseas temporary and long-term workers, schools and universities with international students as well as overseas businesses with a UK presence/subsidiary.
What is a Sponsor licence number?
Sponsor licence holders are assigned a special reference number or name. If you are a skilled worker or temporary worker, your company’s Sponsor licence number can be found on your Certificate of Sponsorship.
What happens if my sponsorship licence application is approved?
If your application is approved, the Home Office will grade your licence and add you to the UK Sponsorship licence register.
If you have tasks that are suitable for sponsorship, you will then be able to provide Certificates of Sponsorship to anyone who is not from the EEA or Switzerland.
Your licence will often remain valid as long as you meet the requirements if you are not sponsoring UK expansion workers or scale-up workers. Your support licence may be suspended or revoked, or you may get a civil penalty from the Home Office, if you fail to fulfill your obligations as a supporter.
What happens if my application for a sponsor licence is rejected?
In the event that your application is denied, the Home Office will explain why. Depending on the reasons provided, you might be eligible to ask for an administrative review of the ruling. As an alternative, you might need to fix the problems found and reapply after a six-month cooling-off period.
What are the ongoing obligations following the issuance of a sponsor licence?
After obtaining a sponsor licence, you have a number of continuing responsibilities, such as maintaining correct records of sponsored employees, keeping an eye on their immigration status, and informing the Home Office of any material changes to your company or the sponsored employees’ circumstances.
What happens if sponsorship obligations are not fulfilled?
Serious consequences for noncompliance include having your sponsor licence downgraded from an A-rating to a B-rating, having it suspended or revoked, which may make it impossible for you to sponsor new employees and possibly result in the loss of your current sponsored employees’ ability to work in the UK. Financial sanctions may also be applied, such as fines for hiring undocumented labor.
