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Sponsor Licence

A Sponsor Licence is permission granted by UK Visas and Immigration (UKVI) that allows an organisation to employ overseas nationals under certain work visa routes — especially the Skilled Worker route. It enables the employer to issue Certificates of Sponsorship (CoS), assign roles, and meet their legal duties for foreign workers. Without a sponsor licence, businesses cannot legally employ most migrant workers who require visas.

Who Needs It?

  • Any employer who wishes to employ someone who is not settled (i.e. does not have indefinite leave to remain, settled status, etc.), and who requires a visa under the Skilled Worker route. GOV.UK
  • Employers already holding a sponsor licence under other routes may need to add the Skilled Worker route to their licence if they want to recruit under Skilled Worker rules. GOV.UK

Comparison Table

Without a Sponsor Licence

With a Sponsor Licence

Cannot employ most migrant workers legally

Can sponsor Skilled Workers and other routes

Limited to the local workforce

Access to a global talent pool

Risk of heavy penalties if employing without status

Compliance framework ensures legal protection

No pathway for employees to settle via work

Workers can obtain ILR and British citizenship

Requirements & Eligibility for Employers

Here are the main criteria an employer must satisfy to be granted a sponsor licence:

Requirement

What the Employer Needs to Show

Genuine Business

Must be lawfully operating in the UK — registered, trading, paying taxes, etc.

HR & Recruitment Systems

Effective systems for recruitment, right-to-work checks, record-keeping, reporting changes, etc. GOV.UK

Key Personnel

Must appoint an Authorising Officer, a Key Contact, and at least one Level 1 User. These people must be UK-based, without adverse criminal or immigration history, and able to demonstrate reliable oversight.

No History of Abuse

No previous serious immigration or compliance failures, licences revoked or duties breached.

Job/Employment Criteria

Jobs must meet the skill level and salary required for the Skilled Worker route; be genuine, full-time/part-time roles (but salaried properly); meet min wage / working hour laws, etc. GOV.UK

Documents Required

Common supporting documents include:

  • Latest business bank statements.
  • Employer’s liability insurance certificate.
  • Proof of registration with HMRC.
  • Evidence of trading presence in the UK (invoices, contracts, etc.).
  • Corporate documents (certificate of incorporation, VAT registration, etc.).

The exact documents depend on your business type (e.g., limited company, sole trader, charity).

Application Process

  1. Prepare business documents (company registration, tax records, premises lease, etc.)
  2. Appoint Key Personnel responsible for compliance
  3. Submit the online application and pay the relevant Home Office fee
  4. Provide supporting documents within 5 working days
  5. Pre-licence audit – UKVI may inspect your systems before granting approval
  6. Home Office Decision – typically within 12 weeks (priority service may reduce this to 20 working days).
  7. Licence granted – you can assign Certificates of Sponsorship (CoS) to overseas staff

Application Fees

  • Small or charitable sponsors: £536
  • Medium or large sponsors: £1,476

Additional costs apply when assigning Certificates of Sponsorship (CoS) and paying the Immigration Skills Charge.

Need Help with Sponsor Licence?

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Duties & Compliance

Once you are a licensed sponsor, certain ongoing obligations apply. Failing to meet them may lead to your licence being downgraded, suspended, or revoked. Key duties include:

  • Keep detailed records of all sponsored employees (contact, immigration status, work start date, etc.) GOV.UK
  • Report to the Home Office if a sponsored worker does not start work, is absent without permission, or other changes in employment or circumstances. GOV.UK
  • Ensure workers are paid correctly and comply with employment and wage laws.
  • Do not charge or recoup fees from workers for sponsorship or Immigration Skills Charge. GOV.UK

Common Pitfalls & How To Avoid Refusal

Problem

How to Avoid

Inadequate HR compliance systems

Build robust policies, assign key personnel clearly, and document everything

Mis-matched job titles or wrong occupation codes

Use correct SOC codes aligned with duties; avoid job titles only

Key Personnel living outside the UK or with adverse records

Ensure all named personnel are UK-based, have clean records, UK-employed where needed

FREQUENTLY ASKED QUESTIONS

What is a Sponsor Licence?
Permission from UKVI for UK employers to hire overseas workers.
Who needs it?
Any UK business hiring non-settled workers under visa routes like Skilled Worker.
What does it cost?
£536 for small/charity sponsors, £1,476 for medium/large. Extra fees apply.
Why do applications get refused?
Weak HR systems, wrong job codes, unsuitable Key Personnel.
How can ICONIQ Solicitors help with a Sponsor Licence UK application?
we provide expert legal support from start to finish. Contact us.