UK businesses generally need a sponsor licence to employ somebody outside the UK. Read this helpful resource to learn more about getting and utilising a sponsor licence.
Under the UK’s points-based immigration system, the main routes for non-UK residents working in the UK include the following sponsored work visas:
Employers in the United Kingdom can fill open posts in the country with the help of foreign nationals by using the UK’s visa sponsorship for employers’ initiative. Employers who want to become licenced sponsors must provide evidence that they can follow programme guidelines and pay associated fees.
As a UK employer recruiting overseas workers, you will need to demonstrate to UK Visas and Immigration (UKVI) that you meet all of the sponsor licence criteria, including that you:
The sponsor licence application consists of two parts:
The online application must be submitted with the relevant fee paid when filing. All supporting documentation must be sent to the UK Visas and Immigration (UKVI) agency within five working days of the application being made online.
From submission, the standard consideration time is eight weeks.
The average processing time for a sponsor licencing application is under 8 weeks. However, a quicker decision may be made if your company needs a sponsor licence quickly.
For an additional £500, applicants can have a decision rendered within 10 business days through the UK Visas and Immigration (UKVI) agency’s pre-licensing priority service. There is a daily cap on the number of requests for this service. Quicker resolutions are given out in the order in which requests are received.
If you want to go quickly through the approval procedure, WorkerVisa UK can submit a request to the priority service on your behalf. When hiring experienced workers is an immediate priority, we suggest this service to businesses.
Before applying for a sponsor licence, four primary considerations must be made.
Companies of all sizes and sectors can apply for a sponsor licence if they meet the eligibility requirements set out by the UK Visas and Immigration (UKVI) agency. To apply for a sponsor licence, your business must have:
For businesses using the sponsor licence scheme, compliance is essential. Employers must show they have exhausted local resources for potential candidates and that they need a qualified worker.
Sponsors have responsibilities under their licence agreements and must follow all programme guidelines. Sponsor licences can be revoked, fines assessed, and other penalties levied for noncompliance with these rules.
The sponsor licence application fee varies according to the size and nature of a business. Medium or large sponsors must pay the ‘large’ fee of £1,476. However, small or charitable sponsors are charged a ‘small’ cost at the reduced rate of £536.
You are eligible to pay the small fee if you:
You must pay the same fee if you apply to renew your licence when it expires after four years.
As well as the above, there are several other fees you will need to consider, including:
Depending on who you plan to hire, different authorisations may be necessary. Licences are typically issued to newly hired skilled employees. Global Business Mobility licences are the second most common type, and international corporations use them to bring their already-established personnel to the United Kingdom.
Minister, International Athlete, and Temporary Worker permits are the other types of visa sponsor licences.
Businesses can sponsor a worker if their job:
What constitutes a suitable rate of pay and skill level for a job depends on the type of job in question. For example, a health or care worker, a seasonal worker, and a religious worker would all have different job suitability requirements to meet. For more information, read the Government’s guidance.
A company must designate individuals to handle applying for a sponsor licence. One person or multiple persons can play these parts. Some of them are:
Businesses can only appoint a single Level-1 User when applying for a licence. However, additional Level 1 Users can be assigned after permission is granted.
Generally, there must always be at least one Level-1 User who is:
After a sponsor licence has been granted, businesses can appoint Level-2 Users. A Level-2 User’s role is similar to a Level-1 User but with fewer administrative privileges (eg they cannot withdraw a certificate of sponsorship).
Businesses must ensure that staff appointed to the above roles suit them. A company may not get its sponsor licence if anyone involved in the sponsorship process has:
Staff appointed to the above roles must typically be paid members of staff or office holders (eg directors). Businesses may nominate a UK-based legal representative qualified to give immigration advice or services to any above roles except the Authorising Officer role.
Successful business applicants will be given an A-rated licence. This allows the business to issue certificates of sponsorship for jobs suitable for support. It will be listed on the register of sponsors.
Suppose a business doesn’t continue to meet its responsibilities as a sponsor. In that case, its rating will be downgraded to a B-Rating until it returns its practices to the appropriate standards.
Sponsor licences will be valid for 4 years unless a business loses its licence because it no longer meets its responsibilities as a sponsor. For more information, read the Government’s guidance.
Every foreign employee must be issued a sponsorship certificate by their employer. A worker’s electronic proof of support can be used with a visa application. Employees must apply for their visa up to three (3) months before their official start date on the certificate.
When providing certificates of sponsorship for some workers, a business will also have to pay an “immigration skills charge”.
Read the government’s guidance for more information about hiring workers from abroad.
The new points system makes it easier for company owners to qualify for the Skilled Worker visa category by removing restrictions on shareholdings for such applicants. Once upon a time, Skilled Workers could only own 10% of a company unless paid over £159,600 annually or via the Intra-Company Transfer visa path. A company must be legally registered and operating in the United Kingdom to sponsor a business owner or employee.
Appointing someone already based in the UK to handle sponsor licencing duties, even part-time, can help expedite the process.
If you are an employer and wish to employ overseas skilled workers, you will likely need a sponsor licence. You need a sponsor licence to engage in Skilled Worker Visa and Global Business Mobility Visa migrants full-time. Since after 2020 and the end of the Brexit transition period, you will likely need a sponsor licence to employ newly arriving EU migrants. Since 1 December 2020, more medium-skilled people can be sponsored under the sponsor licence scheme. Irish nationals are in the Common Travel Area and can continue working freely in the UK.
During the time that the sponsor licence is valid—typically four years—you are permitted to hire an unlimited number of employees. You must meet the Skilled Worker visa points criteria, get a Certificate of Sponsorship for each applicant, and pay the applicable Government costs to qualify for the Skilled Worker visa scheme. Compared to the requirements for a Skilled Worker visa, the primary requirements for an Intra-Company Transfer visa are slightly different. These requirements include a salary threshold of £41,500 per annum in most circumstances and a smaller number of skilled occupations that qualify for the visa. The Skilled Worker visa category will likely continue to be far more popular than the Intra-Company Transfer visa. This is because skilled workers are in higher demand. You should also make sure that you are meeting all of the requirements that come with holding a sponsor licence. If you do not comply with this requirement, you risk having your sponsor licence revoked.
This will vary enormously. However, in most cases, the sponsor licence is granted within about two months. In practice, tiny businesses with, say, one or two staff and new businesses face a more significant risk of being asked a long list of additional questions or visited by the Home Office before a sponsor licence is granted. So, processing times in these cases may be longer. There is a priority service for up to 30 weekly applicants for a government fee of £500, who will respond within ten working days.
Under the Skilled Worker Sponsor licence scheme, the business should already trade in the UK. Under the Global Business Mobility visa scheme, the firm does not need to sell in the UK. Under the Skilled Worker Visa Sponsor Licence scheme, you need to have at least one person (perhaps on a part-time basis) already resident in the UK who can be trusted completely to take on roles for the Sponsor Management System such as level 1 user, authorising officer, and critical contact. When applying initially for a sponsor licence, the level 1 user needs to be a UK permanent resident or a British citizen. Typical documents include proof of PAYE registration, employers’ liability insurance documents, bank letters or statements and rent agreements.
You should apply for a Skilled Worker Sponsor Licence if you intend to employ the visa applicant permanently and for an extended period. Most people must transition from an intra-company transfer visa to a skilled worker visa to be eligible for indefinite leave. At the end of their five years in the UK, holders of a Skilled Worker visa can apply for indefinite leave to remain in the country. You can make use of both varieties of sponsor licences at the same time if you so choose.
The good news is that there is no longer any restriction on shareholdings because the Skilled Worker visa scheme superseded the Tier 2 visa programme on December 1, 2020. This change occurred precisely one year ago. Previously, under the Tier 2 visa programme, you were only allowed a ten per cent shareholding unless the annual income of the sponsored worker was at least £159,600. This restriction was put in place to prevent people from abusing the programme. A business owner can qualify for a Skilled Worker visa rather than an Innovator visa, a Start-Up visa, or a Sole Representative visa. This is because skilled workers are in higher demand. The choices may be too challenging to implement. To hire Skilled Workers, however, employers will typically be responsible for bearing the cost of the immigration skills charge that must be paid. You need, at the very least, to have a trade firm in the United Kingdom and someone already resident in the United Kingdom to take on the responsibilities of the Sponsor Management role.
For the employer to agree to sponsor the Skilled Worker visa applicant, the applicant must have accumulated at least 70 points under the Skilled Worker points system. New requirements must be met to qualify for a visa under the Global Firm Mobility programme. This programme is intended to replace several earlier visa programmes, including the intra-company transfer visa programme and the representative of an overseas firm programme. According to the Global Business Mobility programme, an employee holding a Senior or Specialist position must earn at least £45,800 a year, or the going rate for the job, whichever is higher. The following are some examples that are typical of a Skilled Worker who satisfies the requirements:
• UK sponsor offers a job.
• Job on the Skilled Worker occupation list
• Has a degree taught in English, passed an English language test verified by UKVI or is from an English-speaking country?
• The salary for the job is at the going rate of £26,200, whichever is higher.
Salary is at the new entrant rate of seventy per cent of the going rate or £20,960, whichever is higher. In most cases, this is for students applying in the UK and those under 26 years of age. Or, someone on the Shortage Occupation List is being paid £26,200 per annum, or at least eighty per cent of the going rate, whichever is higher.
This is optional. If you do not have a separate office, it may be an idea to set aside some space at home for the business. You could also find a cheap virtual office. Since the COVID-19 pandemic, the government has been encouraging people to work from home. The business must have at least started trading, even at a very minimal level.
In practice, you will need someone in the UK responsible for the Sponsor Management System for the sponsor licence. The person could be a UK or Irish citizen or temporary or permanent resident and must be able to legally take on a sponsor management role. In most cases, you need to have one person who is a UK permanent resident or UK citizen to be the level 1 user. The person should have some position in the UK business, such as a director or employee. The person does not necessarily have to be on the payroll and does not have to work full-time for the UK business.
If they so want, business owners can hire family members. However, it would be best if you were very careful to ensure that you satisfy the conditions for sponsoring relatives to do so. If you are the Level-1 User for the sponsor licence, you cannot transfer a Certificate of Sponsorship (CoS) to a spouse or other close family member or friend. The remedy to this issue is to apply for a sponsor licence with a Level-1 User who is not related to the person you intend to sponsor or to apply for a second sponsor licence with a Level-1 User who is not a relative after you have been granted a sponsor licence. Both of these options are available to you. Only the Level-1 User and the Level-2 User can use the Sponsor Management System (SMS) in their capacity as sponsor management responsibilities. Those counted as relatives and partners come from a relatively diverse group of people and can include parents, siblings, sisters, cousins, and in-laws, among other relationships. If a different individual is the one who assigns the Certificate of Sponsorship in the Sponsor Management System, a business owner or other individual in the UK is permitted to employ relatives of their own. Suppose a member of someone's family who works for the organisation is given a Certificate of Sponsorship. In that case, a sponsor note should be added through the Sponsor Management System to certify this.
