Sponsor licence
A sponsor licence is permission granted by UKVI to a UK-based organisation allowing it to officially sponsor skilled workers from outside the European Economic Area (EEA) or Switzerland to work in the UK. Sponsored workers must apply for a skilled worker visa which can be renewed and leads to settlement. Sponsor licence holders must comply with their duties and update UKVI as necessary.
What is a sponsor licence?
A sponsor licence is a form of authorisation by UKVI for a UK registered company to employ and officially sponsor workers who are not British citizens or settled, including those from the EU, Iceland, Liechtenstein, Norway and Switzerland.
The rules on sponsoring workers are contained within the Home Office’s 200-page Sponsor Guidance document, the ‘Workers and Temporary Workers: Guidance for Sponsors’ and multiple supporting appendices. The most important requirements for a sponsor licence application are set out below.
Can my business apply for a sponsor licence?
UKVI will only grant a sponsor licence to an organisation that can provide evidence of which jobs it requires and how many employees it is seeking to employ. Additionally, your organisation must also prove that it is operating in the UK and has the necessary systems in place to comply with its duties and responsibilities as a licenced sponsor. To secure a sponsor licence, your company will need to make an application to the Home Office and pay the relevant fees.
Eligibility
Genuine Business
Your company must be a genuine business operating in or trading lawfully in the UK.
Trading Period
There is no requirement for your company to have traded for any minimum period of time, only that it is trading.
Genuine Vacancy
Your company must have a genuine vacancy for a job on the skilled worker job occupation list. UKVI may request additional information to verify the specific nature of the role and associated duties to confirm that the role actually exists and/or is needed.
Human Resources
Your company must already employ someone who handles your HR and recruitment system.
Key Personnel
Your company must already employ individuals who are eligible to assume all of the necessary Key Personnel positions.
Reputation and Compliance
The owners, directors and key personnel employed by your company must be "honest, dependable and reliable". This means not having any unspent criminal convictions.
Additionally, your company must not represent a threat to immigration control and must not have any history of non-compliance.
Key Personnel
You must identify your Authorising Officer, Level 1 User and Key Contact as part of your application for a sponsor licence. If you have a legal representative, they will be permitted to fulfil some of these positions.
Authorising Officer
Your Authorising Officer must be the most senior person in your organisation responsible for the recruitment of all migrant workers. They will be responsible for overall compliance with your company's duties as a licensed sponsor. You can only nominate one person for this role, even if your company has more than one person who could hold this position. Your Authorising Officer must usually be based in the UK for the duration of the role you appoint them to. They must be a paid member of staff or engaged by you as an 'office holder'. They must not have any unspent criminal convictions and they cannot be legally prohibited from being a company director in the UK.
Level 1 User
Your Level 1 User is responsible for carrying out your day-to-day sponsorship activities using the Sponsor Management System (SMS). They can perform the following actions:
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Assign (and withdraw) Certificates of Sponsorship to Workers
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Request an increase to your annual Certificate of Sponsorship limit
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Request an increase in the number of Level 1 Users
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Add or Remove Level 2 Users to the SMS
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Report minor changes to your details
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Report changes of circumstances
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Report worker activity
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View information about your licence and Key Personnel
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Access key messages and updates from UKVI
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Apply to renew your licence
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Apply for premium customer service
Your Level 1 User must be based in the UK for the duration of the role you appoint them to. They must be a paid member of staff, director or partner. They must not have any unspent criminal convictions and they cannot be legally prohibited from being a company director in the UK. Your Level 1 User should be familiar with the sponsorship process and relevant duties. You must also have at least one Level 1 User who is a settled worker.
Key Contact
Your Key Contact is responsible for communicating with UKVI for the purposes of your sponsor licence. You can only nominate one person for this role, even if your company has more than one person who could hold this position.
Your Key Contact must usually be based in the UK for the duration of the role you appoint them to. They must usually be a paid member of staff or engaged by you as an 'office holder'. They must not have any unspent criminal convictions and they cannot be legally prohibited from being a company director in the UK.
Using a Legal Representative
Your UK-based legal representative is permitted to advise you on the process and help you complete the application form for a sponsor licence. However, they cannot submit your application on your behalf.
Your legal representative is also permitted to act as the Key Contact for your organisation. Your representative can also be added as an additional Level 1 User, but cannot be the main Level 1 User and cannot under any circumstances act as your Authorising Officer.
Our partners have several years' experience acting as the Key Contact and additional Level 1 User for our clients. We streamline what is often a complex process to ensure the initial application stands a strong chance of succeeding, and the subsequent responsibilities linked to the Sponsor Management System are complied with.
Application Process
Once your company is in a position to apply for a sponsor licence, you can proceed with the online application form which will require all of the information listed above. You must ensure that all of your answers are accurate and that enough information has been provided where possible. In addition, if you are planning to hire migrant workers who are already in the UK - for example, if they hold a student or graduate visa, you must make a request for a specific allocation of undefined certificates of sponsorship (CoS). If you intend to hire workers from outside the UK, you will have to make a request for defined certificates of sponsorship (DCos).
Application Fee
Your company will either be categorised as a small sponsor / charitable organisations or medium / large. The fee for a standard 'worker' sponsor licence application is currently £536 for small sponsors and £1,476 for medium or large sponsors.
Processing
Once you have submitted your application, you will normally have 5 working days within which to submit all of your supporting documents. The processing of your application will begin once these documents have been received by UKVI. The processing time is approximately 8 weeks for standard applications.
You may be able to pay an additional fee of £500 for the priority service to have your application processed within 10 working days.
Outcome
Your Authorising Officer will be notified of the decision by email. If your application is successful, UKVI will confirm your sponsor licence number, rating, and certificate of sponsorship allocation. Your dedicated Level 1 User's SMS user ID will also be confirmed, but their password will be sent to them separately.
If your application is refused, UKVI will explain the reasons in the refusal letter. If the refusal is due to failure to provide documents or information requested, or due to a mistake, you will usually be able to apply again.
If the refusal is due to any of the following reasons, you will have to wait 6 months before making another application:
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You submitted false documents or acted in bad faith
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You did not have sufficient processes to comply with your sponsor duties
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You have a relevant unspent criminal conviction
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You are legally banned from becoming a company director
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You do not have a trading presence in the UK
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You failed to meet the criteria to be a sponsor under the category which you applied
