How to Apply for a UK Sponsor Licence | Ultimate Guide

The UK’s immigration system requires most overseas workers to be sponsored by a licensed employer before they can take up employment. For businesses, obtaining a sponsor licence is therefore the gateway to recruiting international talent and filling roles that may be hard to staff locally.

However, the process is not as simple as filling out a form—organisations must meet strict eligibility rules, prepare extensive documentation, and commit to long-term compliance duties. This guide will walk you through everything you need to know about applying for a UK sponsor licence, from understanding eligibility to meeting your obligations once approved.

In particular, employers must first familiarise themselves with the sponsorship license requirements UK, which outline the eligibility checks, HR standards, and compliance rules set by the Home Office. Meeting these requirements is essential not only to secure a licence but also to maintain it once granted.

Failure to comply can result in downgrading, suspension, or even revocation of the licence—jeopardising both the business and the sponsored employees.

Table of Contents

What Is a UK Sponsor Licence?

A sponsor licence is permission granted by UK Visas and Immigration (UKVI) that allows an organisation to employ non-UK nationals in specific visa categories. Employers can sponsor workers under visas such as the Skilled Worker visa, Health and Care Worker visa, or certain Temporary Worker visas.

Once licensed, businesses are issued with an online account—the Sponsor Management System (SMS)—through which they assign Certificates of Sponsorship (CoS) to migrant workers. Without this licence, it is unlawful to employ workers from outside the UK and Ireland in roles requiring sponsorship.

Eligibility Criteria

To qualify for a sponsor licence, an organisation must meet several conditions:

Legal presence in the UK – The business must be actively trading or operating in the UK. Evidence such as company registration documents, VAT certificates, or recent bank statements may be required.
Genuine vacancies – Any role offered must be credible and necessary, with duties and salary levels that meet the immigration rules.
Compliance capability – Employers must prove they have robust HR systems to monitor and report on sponsored workers.
Fit and proper personnel – Key staff involved in managing the licence cannot have unspent criminal convictions, immigration offences, or past records of failing in sponsorship duties.
No recent revocations – If an organisation has had a sponsor licence revoked in the last 12 months, it may be barred from reapplying during the cooling-off period.

Types of Sponsor Licences

There are two main categories:

Worker Licence – For long-term recruitment, such as the Skilled Worker route or Global Business Mobility visas.
Temporary Worker Licence – For short-term hires, including seasonal roles, charity workers, or exchange schemes.

Businesses can apply for one or both depending on their hiring needs.

The Application Process

Step 1: Assign Key Personnel

Applicants must appoint individuals to manage the licence:

Authorising Officer – Senior manager responsible for overall compliance.
Key Contact – The main liaison between the business and UKVI.
Level 1 User – Day-to-day SMS manager (with optional Level 2 users for limited tasks).

These individuals must be reliable, mostly based in the UK, and free from disqualifying convictions.

Step 2: Complete the Online Form

The application is submitted online via the Home Office portal. Employers specify the licence type, estimated number of CoS needed, and details about their business operations.

Step 3: Submit Supporting Documents

After applying, the business must provide evidence within five working days. Common documents include:

Certificate of Incorporation from Companies House
VAT registration certificate
Recent business bank statements
Proof of employer’s liability insurance
Lease or ownership documents for business premises

The exact list depends on business structure, as outlined in Appendix A of UKVI’s guidance.

Step 4: Pay the Application Fee

The fee varies:

£536 for small businesses or charities
£1,476 for medium and large companies

Step 5: Await Assessment

Processing typically takes 8 weeks, although a paid priority service can reduce the timeline. During this stage, UKVI may conduct a compliance visit to inspect HR systems, interview staff, and assess whether the business genuinely needs migrant workers.

Duration and Renewal

A sponsor licence is normally valid for four years. However, licences that expire on or after April 2024 are automatically extended for ten years, meaning many organisations no longer need to renew. That said, compliance obligations remain ongoing throughout the licence’s validity.

Duties of a Licensed Sponsor

Once approved, employers must adhere to strict responsibilities:

Record-keeping – Maintain copies of each sponsored worker’s passport, visa, and contact details.
Monitoring attendance – Report prolonged absences or unauthorised leave.
Notifying changes – Update UKVI if a worker changes job title, salary, or work location.
Company changes – Inform UKVI about mergers, takeovers, or changes to key personnel.
Reporting deadlines – Most updates must be made within 10 working days through the SMS.

Failure to meet these duties risks fines, licence downgrading, or revocation.

Common Reasons for Refusal

Applications may be refused if:

Submitted documents are incomplete or incorrect.
The business cannot show a genuine need for migrant workers.
HR systems are deemed inadequate.
Key personnel fail background checks.
The organisation has a poor compliance history.

After Refusal: What Next?

If refused, employers may face a six-month cooling-off period before reapplying, depending on the reason for refusal. It is advisable to seek professional immigration advice to address the issues before submitting a new application.

Practical Tips for Success

Audit HR systems before applying—simulate a Home Office inspection.
Double-check documents against Appendix A requirements.
Train key staff in using the Sponsor Management System.
Maintain transparency about your recruitment process.
Seek legal guidance if unsure, especially for complex organisational structures.

Conclusion

Securing a sponsor licence is essential for UK employers who wish to tap into global talent. While the process involves careful preparation, it is achievable with the right systems, documents, and personnel in place.

By understanding the sponsorship license requirements UK, gathering evidence early, and maintaining strong compliance habits, your organisation can confidently navigate the application process and enjoy the long-term benefits of hiring skilled international workers.