How to Apply for a Sponsor Licence

UK immigration law is complex; businesses looking to hire skilled workers from abroad must navigate strict Immigration Rules and Home Office guidance to ensure the worker can be sponsored and that they are being a compliant sponsor licence holder. This guide will consider the steps involved with applying for a sponsor licence, and will consider how your business can stay compliant with UK Immigration Rules and guidance when sponsoring workers.

What Is a Sponsor Licence?

A sponsor licence is permission from UK Visas and Immigration (UKVI) enabling your business to hire skilled workers from within or outside the UK. It grants a company the ability to sponsor non-UK residents for work visas. A sponsor licence acts as a pledge from you - the sponsor - that you will accept the responsibilities of sponsorship and will act in accordance with relevant immigration and employment law.

There are different types of sponsor licences available, such as the Worker licence for skilled or long-term employment (Skilled Worker, Senior or Specialist Worker, Minister of Religion and International Sportsperson), and the Temporary Worker sponsor licence for specified temporary roles (Scale-up Worker, Creative Worker, Charity Worker, Religious Worker, Government Authorised Exchange, International Agreement, Graduate Trainee, Service Supplier, UK Expansion Worker, Secondment Worker and Seasonal Worker). The type of licence you need will depend on the nature of your business and the roles you’re looking to fill.

All sponsor licence holders take on significant responsibilities. Some of these include reporting significant changes to your organisation or sponsored employees, and record-keeping duties. Failure to meet sponsorship duties can result in a sponsor licence being downgraded, suspended or revoked, which will impact your ability to sponsor workers, so it’s vital to understand your sponsor duties from the outset.

Eligibility Criteria for a Sponsor Licence

Before applying for a sponsor licence, your business must meet certain eligibility criteria. 

• You must be a genuine business with an operating or trading presence in the UK.
• Your organisation must be suitable for a sponsor licence. This involves proving that you have human resource and recruitment systems in place to ensure that you’re able to meet your compliance duties, and that you’re able to meet the specific requirements of the route(s) under which you are applying for a sponsor licence. If applying for a Skilled Worker, Scale-up or Global Business Mobility (GBM) sponsor licence, you must prove that you can offer genuine employment that meets relevant skill and salary requirements. 
• You will need to appoint specific personnel to manage the sponsorship process. These roles include an Authorising Officer who will be responsible for the overall management of the licence; a Key Contact, who acts as the main point of contact with the Home Office; and a Level 1 User, who handles the day-to-day administration of the Sponsor Management System (SMS). Once a sponsor licence is held, JMW Solicitors can be appointed as a Level 1 User to assist with necessary SMS updates and the management of your sponsor licence.

Step-by-Step Guide to Applying for a Sponsor Licence

Step 1: Preparation

It is vital to carefully and thoroughly prepare your sponsor licence application.

Before you begin your application, gather all necessary information and documents. This will include (amongst other evidence) proof of your business’s trading presence, financial stability, detailed job descriptions for the roles you wish to sponsor, and evidence of your HR and right to work procedures.

Step 2: Completing the Online Application Process

The application process starts with an online form on the Home Office website. This form will require you to provide detailed information about your business and the key personnel responsible for managing your sponsorship duties. The application form will also request information about any Undefined Certificates of Sponsorship (CoS) required. 

Once completed and approved, your Authorising Officer must submit the sponsor licence application. 

Accuracy is essential here, as any mistakes can result in delays or even rejection of your application.

Step 3: Providing Supporting Documentation

Following online submission, you’ll need to submit specified supporting documents to UKVI by email. These documents will help to prove that your organisation is genuine and is operating/trading in the UK. Detailed information about your organisation must also be provided alongside the supporting documents and information contained on the online application form.  

It is important that organisations thoroughly understand sponsorship duties at this stage as UKVI can conduct a pre-licence visit whilst assessing an application. Inability to show how sponsored workers will be monitored and what documents/information must be retained by each sponsored worker could result in a sponsor licence application being refused.

Step 4: Paying the Costs and Fees

Sponsor licence application fees differ depending on the size of your business.

For small or charitable sponsors, the application fee is currently £574, and the application fee for medium or large sponsors is currently £1,579. It’s important to budget for these costs as part of your application planning.

How Long Will It Take For A Sponsor Licence Application To Be Decided?

Most sponsor licence applications are decided within 8 weeks of submission. At the time of submission, a priority service may be available; for an additional fee of £500, the priority service should result in a decision being issued within 10 working days. 

Post-Application Requirements for Businesses

If your sponsor licence is approved, you will be able to access the Sponsor Management System (SMS). Your business must also ensure that it remains compliant with sponsorship compliance duties, as the Home Office could undertake a compliance visit at any time.

Using the Sponsor Management System (SMS)

The Sponsor Management System (SMS) is an online tool that you will use to manage your sponsored workers, and report changes to your business. Via the SMS, you will be able to assign Certificates of Sponsorship (CoS) to employees, update employee details, and report any necessary changes to the Home Office. 

Familiarising yourself with this system, and ensuring you thoroughly understand your sponsorship duties, including relevant reporting deadlines, is key to maintaining your licence and enabling your business to stay compliant.

Preparing for Home Office Audits

The Home Office may conduct audits in order to make sure your business is meeting its sponsorship obligations. These audits can happen to sponsor licence holders at any time, so it is important to be prepared.

Regularly review your processes and records to ensure everything is in order; being audit-ready at all times will help you to avoid your licence being downgraded, suspended or revoked.

What Are the Risks of Non-Compliance?

Non-compliance with your sponsorship duties is a significant risk that can have severe and far-reaching consequences for your business.

When you obtain a sponsor licence, you agree to act in accordance with immigration laws, sponsor guidance, and wider UK law including employment law, preventing illegal working, and safeguarding children. Failure to meet these obligations can trigger compliance action by the Home Office, which could result in the loss of your sponsor licence.

The potential consequences of failing to comply with sponsorship duties include:

• Downgrading your licence rating: If a minor breach of the sponsorship system is identified, UKVI may consider downgrading your sponsor licence. This will be on the basis that the minor breach identified can be resolved by way of an action plan which must be met within a specified period of time.
• Suspending your licence: If UKVI consider that you are in breach of sponsor duties and pose a threat to immigration control, sponsor licences can be suspended while UKVI make further enquiries and consider whether the sponsor licence should be revoked. Businesses cannot assign any CoS while their licence is suspended.
• Revocation of your UK sponsor licence: If a sponsor licence is revoked, you will not be able to sponsor any workers, and any sponsored workers will likely have their permission to remain cancelled. Various circumstances can result in a sponsor licence being revoked, including if there is a serious or systematic breach of your sponsor duties.

Given these risks, it is essential to understand the requirements associated with holding a sponsor licence and to implement robust systems to ensure compliance with sponsorship duties. This involves staying up-to-date with any changes in immigration law, maintaining accurate records, and ensuring that relevant changes to your organisation or your sponsored workers are reported to UKVI within strict timeframes. Regular internal audits and training for staff involved in the sponsorship process can also help mitigate the risk of non-compliance.