Sponsor Licence

What is a UK Sponsor Licence?

A UK Sponsor Licence is an authorization granted by the Home Office that allows UK employers to sponsor foreign workers under the points-based immigration system. Without this licence, you cannot legally employ workers from outside the UK who require visa sponsorship.

The sponsor licence system replaced the old Tier 2 system and is now part of the UK's points-based immigration framework introduced in 2021. It applies to all non-UK residents, including EU, EEA, and Swiss nationals who arrived in the UK after 31 December 2020.

Types of Sponsor Licences

There are two main types of sponsor licences:

For most businesses hiring skilled international employees, the Worker Sponsor Licence is required.

Who Needs a Sponsor Licence?

You need a UK sponsor licence if your business:

Industries Commonly Requiring Sponsor Licences
 - Technology & IT: Software developers, data scientists, cybersecurity specialists

- Healthcare: Nurses, doctors, care workers (Health and Care Worker visa)

- Engineering: Civil engineers, mechanical engineers, electrical engineers

- Finance: Accountants, financial analysts, actuaries

- Education: Teachers, lecturers, education consultants

- Hospitality: Chefs, hotel managers (in shortage occupations)

- Construction: Quantity surveyors, construction project managers

UK Sponsor Licence Requirements 2026

To qualify for a sponsor licence, your business must meet specific Home Office requirements. These are designed to ensure only genuine employers who can provide suitable roles are authorized to sponsor workers.

Genuine Trading Requirement

Your business must be actively trading in the UK, operating lawfully, and able to provide evidence of genuine business activities. Acceptable evidence includes Companies House registration, business bank statements, HMRC tax records, office premises documentation, and client contracts or invoices.

Suitable Role Requirement

The job you're sponsoring must be at RQF Level 3 or above, which is equivalent to A-level. It must also meet the minimum salary threshold of £38,700 or the "going rate" for the role, whichever is higher. The position must be a genuine vacancy and cannot be filling a position due to industrial action.

HR Compliance & Systems

Your organization must have robust HR systems in place to monitor sponsored employees and maintain the capability to keep required records. You'll need systems to report changes to the Home Office and policies to prevent illegal working.

Key Personnel

You must appoint and register three specific individuals: an Authorising Officer, who should be a senior person with authority to commit the organization; a Key Contact, who serves as the liaison between the sponsor and Home Office; and a Level 1 User, who handles day-to-day management of sponsor licence duties. These individuals must pass identity verification checks.

No Immigration Compliance History Issues

Your business should not have any previous sponsor licence revocations, directors with immigration offences, history of employing illegal workers, or outstanding civil penalties from the Home Office.

Suitable Premises

You must have a genuine UK trading address (not a virtual office), verifiable business premises, and the ability to accommodate Home Office compliance visits.

Sponsor Licence Application Process: Step-by-Step Guide

Step 1: Assess Your Eligibility (1-2 weeks)

Before applying, ensure you meet all Home Office requirements. Review your business structure and trading history, HR systems and record-keeping capabilities, job role specifications and salary levels, and the suitability of your key personnel. Worldwide Immigration can conduct a full eligibility assessment for you.

Step 2: Prepare Your Supporting Documents (2-3 weeks)

You'll need to gather comprehensive documentation across three main categories. For business documents, prepare your Certificate of Incorporation, business bank statements from the last three months, a business plan or company overview, proof of trading such as invoices, contracts, and purchase orders, HMRC records including PAYE and Corporation Tax, VAT registration if applicable, and proof of business premises.

For job specification documents, you'll need a detailed job description, information about the salary and benefits package, an explanation of why you're hiring internationally, evidence of recruitment efforts in the UK and settled worker market, and an organizational chart showing where the role fits within your company structure.

Key personnel documents should include passports or ID documents, proof of right to work in the UK, DBS checks if applicable, proof of their role in the organization, and current contact details.

Step 3: Complete the Online Application (1 day)

Submit your application via the Home Office Sponsor Management System (SMS) by creating an SMS account, completing the application form accurately, uploading all supporting documents, paying the application fee, and submitting your application.

Common application mistakes to avoid include incomplete documentation, inconsistent information across documents, insufficient proof of genuine trading, poorly written job descriptions, and missing key personnel details.

Step 4: Home Office Assessment (8 weeks standard)

The Home Office will review your application and documents, verify your business information, and may conduct compliance visits or request additional information before making a decision on your application. Processing typically takes 8 weeks, but can be longer during busy periods.

Step 5: Receive Your Decision

If approved, you'll receive your sponsor licence certificate, access to the Sponsor Management System (SMS), Certificate of Sponsorship (CoS) allocation, and you can begin sponsoring workers. If refused, you'll receive detailed reasons for the refusal, have the option to reapply after addressing the rejection reasons, and may have administrative review rights in some cases.

Step 6: Assign Certificates of Sponsorship

Once licensed, you can assign CoS to specific workers, provide CoS reference numbers for visa applications, track sponsorship through SMS, and manage your licence duties.

Sponsor Licence Costs 2026
Understanding the full cost of obtaining and maintaining a sponsor licence helps you budget appropriately. 

Application Fees

Small/Charity Sponsor Definition:

- Turnover up to £10.2 million

- Balance sheet up to £5.1 million

- 50 or fewer employees

Certificate of Sponsorship (CoS) Fees
For each worker you sponsor:

Most employers use Defined CoS for Skilled Worker visas.

Immigration Skills Charge

Payable when assigning a CoS:

Exemptions Apply For Certain Categories

Exemptions to certain requirements apply for PhD-level roles, Health and Care Worker visa holders, and workers on the shortage occupation list.

Annual Licence Maintenance

Your sponsor licence is valid for 4 years and then becomes renewable. There is no annual fee once the licence is granted, but a renewal fee equivalent to the original application fee becomes due after 4 years.

Additional Costs to Consider

Beyond the basic fees, you should budget for legal or consultancy fees ranging from £1,500 to £5,000 as a one-time cost. Compliance systems typically cost between £500 and £2,000 annually, while DBS checks cost £40 to £60 per key person. Priority processing is available for £500 if you need a faster decision.

Total Cost Example for Small Business

For your first employee sponsorship, you should expect to pay an application fee of £536, a CoS fee of £239, Immigration Skills Charge for 12 months of £364, and consultancy support of approximately £2,000, bringing the total to £3,139. For a second employee in the same year, you'll only need to pay the CoS fee of £239 and Immigration Skills Charge of £364, totaling £603.

Sponsor Licence Validity and Renewal

The initial grant of your licence lasts for 4 years. You should apply for renewal 3 months before expiry, and the validity continues indefinitely if compliance is maintained throughout.

Maintaining Your Licence

To keep your sponsor licence active, you must fulfill several ongoing requirements. You're required to report to the Home Office within 10 working days if a sponsored worker doesn't start work on the expected date, if a worker's employment ends earlier than expected, if a worker goes absent without permission for 10 days, if a worker's job changes in terms of role, salary, or location, if you cease trading or change your business structure, or if there are any key personnel changes.

You must conduct annual reviews that verify all sponsored workers' right to work, update SMS records, maintain HR and payroll records, and ensure salary levels are maintained. Additionally, you need to be ready for compliance visits, as the Home Office may visit without notice. During these visits, you must provide employee records immediately, demonstrate ongoing compliance, and show proper record-keeping systems.

Sponsor Licence Compliance Responsibilities

As a licensed sponsor, you have ongoing duties across several areas.

Record-Keeping Requirements

You must maintain comprehensive records for all sponsored workers including right to work documents, copies of passports and BRP cards, contact details both in the UK and overseas, job title and start date, salary and working hours, absences and their reasons, and any disciplinary or grievance matters. These records must be retained for the duration of employment plus a minimum of one year.

Reporting Obligations

You're required to report within 10 working days any changes to a worker's circumstances, suspicious activity such as suspected immigration fraud, worker absences over 10 consecutive days, and instances where a worker doesn't turn up for work.

Prevent Illegal Working

Your responsibilities include conducting right to work checks, verifying passport and visa validity, checking BRP card expiry dates, ensuring you don't employ workers outside their visa conditions, and reporting suspicious documents.

Salary and Role Requirements

You must pay at least the minimum salary threshold, ensure the role matches the CoS description, prevent workers from performing unauthorized work, and update the Home Office of any role changes.

Common Sponsor Licence Rejection Reasons (And How to Avoid Them)

1. Insufficient Evidence of Genuine Trading

This commonly occurs with new businesses that have limited trading history, insufficient financial documentation, virtual office addresses, or no evidence of business activity. You can avoid this by providing comprehensive bank statements, including multiple invoices and contracts, showing evidence of physical premises, providing a detailed business plan, and including HMRC tax records.

2. Inadequate HR Systems

Rejections happen when there's no dedicated HR function, a lack of clear policies, insufficient record-keeping procedures, or no system for monitoring employees. To avoid this, you should implement HR software or systems, document HR policies and procedures, show capability to track employee data, and demonstrate reporting mechanisms.

3. Non-Compliant Job Specification

Applications fail when the job is below RQF Level 3, the salary is below the minimum threshold, the job description is vague, or the role doesn't match the SOC code. You can prevent this by using official SOC codes accurately, providing a detailed and specific job description, ensuring the salary meets requirements, and matching duties to the appropriate skill level.

4. Key Personnel Issues

Problems arise when key personnel are not senior enough, fail identity checks, have the same person in multiple roles (particularly in small businesses), or have immigration history concerns. Avoid these issues by appointing suitable senior personnel, ensuring they have a clean immigration history, completing identity verification correctly, and providing proper documentation.

5. Poor Quality Application

Rejections occur due to missing documents, inconsistent information, errors in forms, and insufficient explanation. You can avoid this by double-checking all information, providing clear and consistent documentation, including a cover letter explaining your business, and having your application professionally reviewed.

Skilled Worker Visa Requirements for Sponsored Employees

Once you have your sponsor licence, the workers you sponsor must meet the points-based system requirement of a minimum of 50 points.

Mandatory Requirements (50 points)

Workers must have a valid CoS from a licensed sponsor, which provides 20 points, a job at the appropriate skill level for another 20 points, and English language proficiency at B1 level for 10 points.

Salary Threshold (Variable points)

The salary must be either £38,700 or the "going rate" for the role, whichever is higher. Reduced thresholds apply for shortage occupations, and new entrant rates are available at lower salary levels.

Exceptions and Discounts

How Long Does the Sponsor Licence Application Take?

Standard Timeline

Priority Service

A priority service is available for urgent applications at an additional fee of £500. This service provides a decision within 10 working days, though it's important to note that this doesn't guarantee approval, just a faster decision.

Factors Affecting Timeline

Several factors can influence how quickly your application is processed. Faster processing typically occurs when you submit a complete and well-organized application with all required documents included, demonstrate a clear business trading history, and have a simple business structure. Conversely, slower processing often results from missing documentation, situations where the Home Office requests additional information, cases requiring a compliance visit, or during periods of high application volumes.

Benefits of Having a UK Sponsor Licence

1. Access to Global Talent Pool

A sponsor licence allows you to recruit the best candidates from anywhere in the world, meaning you're not limited to UK-only talent. You can fill skills gaps quickly and bring specialized expertise to your business that might not be available domestically.

2. Competitive Advantage

With a sponsor licence, you can attract top international talent, outpace competitors in recruitment, build diverse and skilled teams, and expand your business capabilities beyond what would be possible with a restricted talent pool.

3. Business Growth

The ability to sponsor workers enables you to scale your workforce strategically, enter new markets with international expertise, drive innovation through diverse perspectives, and meet project demands quickly when domestic talent is unavailable.

4. Long-Term Workforce Planning

You can secure skilled workers for 5 years or more, provide a path to settlement for key employees, reduce recruitment costs in the long term, and build stable, experienced teams that grow with your business.

5. Industry Recognition

Holding a sponsor licence demonstrates your commitment to excellence, shows your ability to meet compliance standards, enhances your business reputation, and makes your company more attractive to both clients and potential partners.

Why Choose Worldwide Immigration for Your Sponsor Licence Application?

Expert Guidance from Start to Finish

We specialize in sponsor licence applications for SMEs. Our team understands the challenges small and medium businesses face and provides tailored support to ensure success.

Our Services Include:

We offer a free eligibility assessment where we review your business suitability, identify potential issues early, and provide honest, realistic advice about your prospects. Our complete application management service includes preparing all documentation, writing a compelling business case, completing the SMS application, and liaising with the Home Office on your behalf.

We provide comprehensive document review and preparation to ensure all documents meet Home Office requirements, organize your submission for maximum impact, and draft supporting letters and explanations. Our compliance support helps you set up HR systems and policies, create record-keeping templates, prepare for compliance visits, and access ongoing compliance advice.

A fast-track service is available that includes priority document preparation, expedited application submission, and priority Home Office service where available. We also provide post-approval support including SMS system training, CoS assignment guidance, ongoing compliance monitoring, and renewal reminders and support.

Sponsor Licence vs. Alternative Immigration Routes

Certificate of Sponsorship (CoS)

The CoS is not a visa route itself, but rather a required document for Skilled Worker visas, intra-company transfers, and Health and Care Worker visas.

Global Business Mobility Visa

This option is designed for established businesses with overseas offices who want to transfer existing employees to their UK branch. It has different requirements than a standard sponsor licence, offers a shorter application process, but is limited to specific scenarios.

Temporary Worker Routes

For short-term needs, temporary worker routes are available covering seasonal workers, charity volunteers, creative workers, and religious workers.

When Sponsor Licence is Best

A sponsor licence is the optimal choice when you're hiring new employees from abroad, planning long-term employment of 2 years or more, filling skilled roles at the appropriate salary level, and building a permanent workforce.

Get Your Sponsor Licence Application Started Today

Don't let the complexity of sponsor licence applications hold back your business growth. Our expert team at Worldwide Immigration makes the process straightforward, stress-free, and successful.

Next Steps:

Begin with a free consultation by calling us on +44 (0)203 4882 308 or WhatsApp +44 7360 271841 for a no-obligation discussion about your needs. We'll then conduct an eligibility assessment where we review your business and provide honest advice on your chances of success. Once you're ready to proceed, we'll guide you through every step, handling the complex parts while keeping you informed throughout the process.

Contact Information

You can reach us by email at inquiry@worldwideimmigration.co.uk, by phone at +44 (0)203 4882 308, or via WhatsApp at +44 7360 271841. Our office is located at 124 City Road, London, EC1V 2NX, and we're available Monday through Friday from 9:00 AM to 5:00 PM.

Why Wait?

Every day without a sponsor licence is a day you can't access the global talent pool. With processing times of 8 to 15 weeks, starting now means you could be hiring international talent within 3 to 4 months. Start your sponsor licence application today and unlock access to the world's best talent for your business.