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
- Prepare business documents (company registration, tax records, premises lease, etc.)
- Appoint Key Personnel responsible for compliance
- Submit the online application and pay the relevant Home Office fee
- Provide supporting documents within 5 working days
- Pre-licence audit – UKVI may inspect your systems before granting approval
- Home Office Decision – typically within 12 weeks (priority service may reduce this to 20 working days).
- 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.
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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 |
What is a Sponsor Licence?
Who needs it?
What does it cost?
Why do applications get refused?
How can ICONIQ Solicitors help with a Sponsor Licence UK application?
References
- https://www.gov.uk/government/publications/workers-and-temporary-workers-sponsor-a-skilled-worker/workers-and-temporary-workers-sponsor-a-skilled-worker-accessible
- https://www.gov.uk/government/publications/workers-and-temporary-workers-guidance-for-sponsors-part-1-apply-for-a-licence/workers-and-temporary-workers-guidance-for-sponsors-part-1-apply-for-a-licence-accessible
- Workers and Temporary Workers – guidance for sponsors part 1: apply for a licence – GOV.UK
- Workers and Temporary Workers: guidance for sponsors part 3: sponsor duties and compliance – GOV.UK