How to Apply for a Sponsor Licence
What you need to know
- •Small/charitable sponsors pay £536. Medium/large sponsors pay £1,476. The licence lasts 4 years.
- •Standard processing takes about 8 weeks. Priority service reduces this to around 10 working days.
- •You need evidence of genuine business operations, HR systems, and compliance capability.
- •The Home Office may visit your premises before or after granting the licence.
- •Ongoing compliance duties include reporting, record-keeping, and cooperating with audits.
A sponsor licence costs £536 for small sponsors or £1,476 for medium/large sponsors and takes approximately 8 weeks to process. You need evidence of your business operations, HR systems, and ability to meet sponsor duties. Once licensed, you can issue Certificates of Sponsorship but must comply with ongoing reporting and record-keeping obligations.
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What Is a Sponsor Licence?
A sponsor licence is an authorisation from the Home Office that allows a UK employer to sponsor workers from overseas on certain visa routes, primarily the Skilled Worker visa. Without a sponsor licence, you cannot hire workers who need visa sponsorship.
The licence is issued to your organisation, not to individual workers. Once you have a licence, you can sponsor multiple workers (subject to your Certificate of Sponsorship allocation). The licence is valid for 4 years, after which you must renew it.
The sponsor licence system is managed through the GOV.UK employer sponsorship pages. All licensed sponsors are listed on the public Register of Licensed Sponsors.
Who Can Apply?
To be eligible for a sponsor licence, your organisation must:
- Be a genuine organisation operating lawfully in the UK
- Not have had a sponsor licence revoked in the previous 12 months (with some exceptions)
- Have appropriate HR and recruitment systems in place
- Be able to fulfil the ongoing duties of a sponsor (reporting, record-keeping, compliance)
- Not have any individuals in key roles who are considered unsuitable (e.g., those with unspent criminal convictions for relevant offences)
Any type of organisation can apply: limited companies, sole traders, partnerships, charities, public sector bodies, and educational institutions. The key requirement is that you are genuine, operating, and capable of meeting your sponsorship responsibilities.
Costs
The sponsor licence fee depends on the size of your organisation:
- Small or charitable sponsors: £536. This applies to businesses with annual turnover under £10.2 million and fewer than 50 employees, as well as charities.
- Medium and large sponsors: £1,476. This applies to businesses that exceed the small sponsor thresholds.
Additional costs include:
- Priority processing: Approximately £500 for faster processing
- Immigration Skills Charge: £364/year (small sponsors) or £1,000/year (medium/large) per sponsored worker
- Certificate of Sponsorship fee: £239 per undefined CoS
These are employer costs. It is illegal to pass them to the worker.
Documents You Need
The Home Office requires evidence that your organisation is genuine and capable of meeting sponsor duties. The specific documents depend on your organisation type, but typically include:
All Organisations
- Employer's liability insurance certificate (or confirmation of Crown body status if applicable)
- Evidence of HMRC registration (PAYE reference)
- Bank statements showing business transactions
Limited Companies
- Company registration documents from Companies House
- Latest audited or unaudited annual accounts
- VAT registration certificate (if applicable)
Sole Traders and Partnerships
- Self-assessment tax return
- Business bank statements
- Evidence of trading (contracts, invoices, business premises lease)
Additional Evidence
- Evidence of a genuine vacancy (job advert, recruitment records)
- Details of your HR and recruitment processes
- Organisational structure chart
- Evidence of business premises (lease or ownership documents)
The Application Process
- Prepare your documents. Gather all required evidence before starting the application. Missing documents are a common cause of refusal.
- Apply online. Submit your application through the GOV.UK sponsor licence application page. You will need to create an account on the Sponsorship Management System.
- Nominate key personnel. You must nominate an Authorising Officer (a senior person responsible for the licence), a Key Contact (day-to-day management), and a Level 1 User (who operates the SMS).
- Pay the fee. The fee is paid online during the application.
- Upload supporting documents. Submit all required evidence through the online system within 5 working days of submitting the application.
- Wait for processing. Standard: approximately 8 weeks. Priority: approximately 10 working days.
- Possible compliance visit. The Home Office may visit your premises before or after granting the licence to verify your operations and systems.
- Decision. You will be notified by email. If approved, you can start assigning CoS to workers.
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Compliance Visits
The Home Office may visit your premises at any time, either as part of the initial application assessment or after the licence is granted. During a visit, they will check:
- That your organisation is genuine and operating as described
- That you have appropriate HR and record-keeping systems
- That you are monitoring your sponsored workers (attendance, contact details, immigration status)
- That you have reported any changes as required (e.g., workers leaving, salary changes)
- That sponsored workers are doing the job described on their CoS
Failing a compliance visit can result in your licence being downgraded, suspended, or revoked. Take compliance seriously from day one.
Ongoing Sponsor Duties
Holding a sponsor licence comes with ongoing obligations:
Reporting Duties
- Report if a sponsored worker does not start their job
- Report if a sponsored worker is absent without permission for 10 or more consecutive working days
- Report if a sponsored worker's employment ends (for any reason)
- Report any significant changes to your organisation (address, ownership, key personnel)
Record-Keeping Duties
- Keep copies of sponsored workers' passports and right to work documents
- Maintain up-to-date contact details for all sponsored workers
- Keep records of sponsored workers' attendance and work patterns
Compliance Duties
- Cooperate with Home Office compliance visits
- Ensure sponsored workers are doing the job described on their CoS
- Not allow sponsored workers to work for a third party without approval
- Conduct right to work checks on all employees, not just sponsored workers
Common Reasons for Refusal
- Insufficient evidence of genuine operations: If the Home Office is not satisfied that your organisation is genuinely trading and operating.
- Inadequate HR systems: You must demonstrate that you have systems in place to monitor workers and meet your reporting duties.
- Key personnel concerns: If your Authorising Officer or other key personnel have unspent criminal convictions or previous immigration breaches.
- Previous licence revocation: If your organisation had a licence revoked within the past 12 months.
- Missing documents: Failing to submit all required evidence within the deadline.
Renewing Your Licence
Your sponsor licence is valid for 4 years. Before it expires, you must apply to renew it. The renewal process is similar to the initial application, and you must demonstrate that you continue to meet all sponsor requirements.
If you do not renew on time, your licence will lapse. This affects all your sponsored workers, whose visas may be curtailed. Set a reminder at least 3 months before your licence expiry date.
Getting Help
The sponsor licence application is straightforward for well-organised businesses, but it can be complex for smaller organisations or those unfamiliar with immigration compliance. Consider:
- Using an immigration solicitor to guide you through the application and ensure your documents are in order.
- Reviewing the Home Office's sponsor guidance on GOV.UK before applying.
- Preparing your HR systems and record-keeping processes before submitting the application, not after.
This guide is general information, not immigration advice. Immigration rules change frequently. For advice on your specific situation, consult an OISC-registered adviser or immigration solicitor. Always check GOV.UK for the latest rules.
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