A Sponsor Licence authorizes UK companies to employ foreign workers. It enables licensed UK businesses to issue Certificates of Sponsorship (CoS) to eligible non-UK nationals, allowing them to apply for work visas like the Skilled Worker Visa. Educational institutions, such as universities, must obtain a sponsor license from the Home Office to enroll international students.
These licenses are valid for four years and must be renewed. The application process is rigorous, and maintaining the license requires strict compliance with Home Office standards. This includes ensuring that HR processes align with these requirements.
If you have inquiries about sponsoring talent from overseas, don’t hesitate to contact our business immigration lawyers for a telephone consultation at + 44 (0) 121 572 8126 or via email at immigrations@ausuk.co.uk.
To apply for a sponsor license, you must meet the following criteria:
Legitimate Operation: Operate as a genuine, lawful entity in the UK.
UK-Based: Have a presence and be established in the United Kingdom.
Non-Threat to Immigration Control: Demonstrate that your activities do not threaten immigration control.
Key Personnel Integrity: Ensure that key personnel associated with your organization are honest and dependable.
Effective HR System: Maintain an adequate and efficient HR system to fulfill your obligations as a licensed sponsor.
For more information on sponsor license eligibility, don’t hesitate to contact our team.
Businesses applying for a sponsor license must be genuine and legally operate as a PLC, Ltd, LLP, or Sole Trader in the UK. They must have a UK presence, such as being incorporated with Companies House, and hold the appropriate planning permissions.
New start-ups can apply for a sponsor license, but those operating for under 18 months must provide evidence of a current corporate bank account with an FCA and PRA-registered UK bank.
Depending on the sponsor license type, additional business eligibility requirements may apply. For example, businesses applying for a UK Expansion Worker sponsorship license must not have an active trading presence in the UK but must have a UK ‘footprint.’
Businesses must demonstrate their integrity, reliability, and capability to fulfill the responsibilities of a sponsorship license holder. Specifically, they should:
Implement Effective HR Systems: Have robust HR systems to manage sponsor duties.
Readiness for Compliance Visits: Be prepared for UKVI compliance visits anytime.
Clear Criminal Record: Have no unspent criminal convictions related to immigration offenses or tax evasion.
Demonstrate Compliance History: Show no evidence of non-compliance with previous sponsorship licenses.
No Recent Licence Revocation: I have not had a sponsor license revoked in the last year.
These requirements highlight the importance of maintaining high compliance standards.
Businesses must demonstrate a bona fide need to hire overseas workers by passing the genuineness test for sponsorship. They must genuinely intend to sponsor individuals for eligible roles and meet the skill and salary prerequisites. The Home Office will scrutinize the roles within the business context.
Businesses should provide details about the roles they aim to fill and any prospective candidates. Although exhaustive recruitment details are not required, they can strengthen the application.
During the application process, UKVI will request the names of all key personnel, who must be British citizens with no unspent criminal convictions, on the payroll, and not related to the candidate. The key personnel roles include:
Authorising Officer: Responsible for ensuring compliance with the licence.
Key Contact: Primary point of contact with the Home Office.
Level 1 & 2 Users: Manage the day-to-day operations of the SMS system.
These key personnel are crucial for upholding the sponsorship process’s integrity.
Employers can apply for two main types of sponsor licenses: worker licenses for skilled or long-term positions and temporary worker licenses. Businesses must specify the type they need and can only recruit international staff accordingly. They can apply for various subcategories within the worker licenses.
Worker Licence: For engaging skilled international workers on a short-term, long-term, or permanent basis, covering categories like:
Temporary Worker Licence: To enlist international staff for short-term, temporary roles, including volunteers. Candidates must meet the UK points-based system requirements, including minimum salary thresholds.
The application process involves several steps:
Lists of the documents needed for a sponsor license application. At least four papers are typically required, although certain public bodies are exempted.
Documents may include:
Application fees vary based on the license type and business size:
Small or Charitable Sponsors:
Medium or Large Sponsors:
A sponsor license number is a unique identifier used on a CoS, an electronic record containing job offer details. A representative can request a CoS through the SMS system. Depending on the licence type, costs range from £25 to £239.
Defined CoS: For Skilled Worker visa applicants outside the UK.
Undefined CoS: This is for candidates switching visas within the UK and other visa categories.
Sponsoring businesses must establish systems to:
UKVI may conduct compliance visits before and after license issuance to ensure adherence to sponsorship duties. Visits assess the accuracy of records and the genuineness of the business. Non-compliance can result in license downgrades, suspension, or revocation.
Employers receive an ‘A’ rating initially. Non-compliance can result in a ‘B’ rating, restricting the issuance of new CoS until improvements are made. Failure to address issues may lead to license revocation.
Common reasons for refusal include non-compliance, delayed responses, application authenticity concerns, unspent criminal convictions, and incorrect information. After refusal, there is a cooling-off period before reapplying.
Sponsor licenses must be renewed every four years. Renewal applications can be made online through SMS. The renewal fee is £536 for small businesses or charitable sponsors and £1,476 for medium and large companies.
For more information or assistance with the application process, don’t hesitate to contact our business immigration team.
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