A UK sponsorship licence, also known as a sponsor licence, empowers UK businesses to recruit foreign workers. Licenced UK businesses can issue Certificates of Sponsorship (CoS) to eligible non-UK nationals, allowing them to apply for work visas such as the Skilled Worker Visa. Educational institutions, like universities aiming to attract international students, must also secure a sponsor licence from the Home Office.
By instructing our leading London law firm, you can enhance your chances of success in preparing and submitting your sponsorship licence applications and skilled worker visa applications.
Key Changes to Sponsorship Licence Renewals
According to the latest Home Office update, from April 2024, the necessity to renew the sponsor licence every four years is abolished. Sponsor licences expiring on or after 6 April 2024 will be automatically extended for an additional 10 years. However, licences set to expire before this date must follow the existing renewal process. Before this update, sponsor licences were valid for four years, requiring timely renewals to avoid expiration.
The Sponsor Licence Application Process
The application process for a UK sponsor licence is stringent, necessitating a robust compliance regime to maintain the licence. This involves ensuring that your HR processes align with Home Office requirements. To streamline your application and increase your chances of success, consider instructing our leading London law firm. Our expertise in preparing and submitting sponsorship licence applications and skilled worker visa applications can significantly benefit your business.
Sponsor Licence Requirements
To qualify for a sponsor licence, your business must:
- Operate genuinely and lawfully within the UK.
- Be based in the UK.
- Not pose a threat to immigration control.
- Have key personnel who are “honest and dependable.”
- Maintain an efficient HR system to meet ongoing obligations as a licenced sponsor.
Business Eligibility
Businesses must be genuine, legally operating in the UK as a PLC, Ltd, LLP, or Sole Trader. This includes having a UK presence, such as a company incorporated with Companies House, and holding appropriate planning permissions. Start-ups operating for less than 18 months must provide evidence of a corporate bank account with an FCA and PRA-registered UK bank. Depending on the sponsor licence type, additional requirements may apply.
Suitability Requirements
Applicants must demonstrate they are reliable and capable of fulfilling sponsor responsibilities. Specifically, businesses must:
– Have suitable HR systems in place.
– Be prepared for UKVI compliance visits at any time.
– Have no unspent criminal convictions for immigration offences or tax evasion.
– Show no evidence of non-compliance with previous sponsorship licences.
– Not have had a sponsor licence revoked in the past year.
Genuine Business Requirements
Businesses must prove a genuine need to hire overseas workers by meeting the genuineness test for sponsorship. This involves showing intent to sponsor workers for eligible roles, meeting skill and salary requirements, and providing details about the roles and potential candidates. Although not mandatory, detailed recruitment information can strengthen the application.
Key Personnel Requirements
The UKVI will require details of key personnel, who must be British, free of unspent criminal convictions, on the payroll, and not related to the candidate. Key personnel roles include:
- Authorising Officer: A senior person responsible for the licence and immigration issues.
- Key Contact: The main liaison with the Home Office.
- Level 1 & 2 Users: Individuals managing the SMS system daily.
Types of Sponsor Licences for Employers
Worker Licence
A “Worker” licence is for employers hiring skilled international workers for short-term, long-term, or permanent roles. This includes categories like:
- Skilled Worker
- Scale-up Worker
- Senior or Specialist Worker Visa
- Minister of Religion
- International Sportsperson
Temporary Worker Licence
A “Temporary Worker” licence allows businesses to hire international staff for short-term roles, including volunteers. Businesses must ensure roles meet the UK points-based system requirements and minimum salary thresholds, which vary by role and other factors such as qualifications and market rates.
Why Instruct Our Leading London Law Firm?
Navigating the complexities of the UK sponsorship licence application process can be daunting. By instructing our leading London law firm, you can benefit from our extensive experience and expertise. We ensure that your application is thorough, compliant, and tailored to meet the Home Office’s stringent requirements. Our services cover every aspect of the process, from initial application to ongoing compliance, giving you peace of mind and the best chance of success.
How to Apply for a Sponsor Licence
To apply for a sponsor licence, follow these steps:
1. Decide on the categories/tiers to include in your licence.
2. Assess your eligibility and suitability, making necessary HR system adjustments.
3. Designate key personnel.
4. Gather and submit appropriate documents.
5. Determine the number of CoS needed for the first year.
6. Complete and submit the online application and send hard-copy documents to the Home Office.
7. Prepare for a possible Home Office site visit.
8. Await the decision.
Sponsor Licence Number and Certificates of Sponsorship (CoS)
A sponsor licence number is included on a CoS, an electronic document for visa applications. CoS can be defined (for Skilled Worker visas from outside the UK) or undefined (for other visas). CoS costs range from £25 to £239.
Sponsor Licence Duties and Compliance
Sponsors must have systems to record, report, monitor absences, and update the SMS with any changes. Compliance involves ensuring workers meet visa criteria, conducting right-to-work checks, and reporting relevant events to the Home Office. A UKVI compliance visit may occur anytime to ensure adherence to sponsorship duties.
Steps to Apply for a Sponsorship Licence
1. Determine Categories/Tiers:
Decide which categories or tiers you want to include in your licence, such as the Skilled Worker or Temporary Worker categories.
2. Assess Eligibility and Suitability:
Evaluate your business’s eligibility and suitability for each category/tier. Ensure your HR systems comply with Home Office requirements and make any necessary adjustments.
3. Appoint Key Personnel:
Designate key personnel, including an Authorising Officer, Key Contact, and Level 1 & 2 Users of the Sponsor Management System (SMS).
4. Gather Required Documents:
Collect the necessary documents for your application. Refer to Home office Appendix A for guidance on required documents.
5. Decide on Certificates of Sponsorship (CoS):
Determine the number of CoS you will need for the first year of your licence.
6. Submit the Application:
Complete and submit the online application along with hard-copy documents to the Home Office.
7. Prepare for Compliance Visit:
Be ready for a potential Home Office site visit to verify your compliance with sponsor duties.
8. Receive the Decision:
Await the Home Office decision on your sponsorship licence application.
Sponsor Licence Fees
The fees for applying for a UK sponsor licence vary based on the size of your business:
| Type of Licence | Small or Charitable Sponsors | Medium or Large Sponsors |
| Worker Licence | £536 | £1,476 |
| Temporary Worker Licence | £536 | £536 |
| Worker and Temporary Worker Licence | £536 | £1,476 |
| Adding Worker Licence to Existing Temporary Worker Licence | No cost | £940 |
| Adding Temporary Worker Licence to Existing Worker Licence | No cost | No cost |
To qualify as a small or charitable sponsor, your business must meet at least two of the following criteria:
– Annual turnover of £10.2 million or less.
– Total assets of £5.1 million or less.
– 50 employees or fewer.
Sponsor Licence Number and Certificates of Sponsorship (CoS)
A sponsor licence number is a unique reference included on a CoS, an electronic document used by an overseas worker to apply for a work visa. A nominated person within your organisation can apply for CoS using the SMS. If approved, the CoS can be issued to the worker, proving they have a job offer and enabling them to apply for a work visa.
-Defined CoS: Issued to Skilled Worker visa applicants outside the UK.
– Undefined CoS: Issued to candidates switching to a Skilled Worker visa within the UK and for all other visas.
Sponsor Licence Duties
Your business must demonstrate the ability to carry out sponsor duties effectively. This includes:
– Recording, reporting, and monitoring worker absences.
– Ensuring sponsored workers have the required skills and meet visa criteria.
– Conducting right-to-work checks.
– Storing recruitment documents.
– Reporting significant events to the Home Office.
Monitoring and Reporting
You must monitor and keep records of sponsored workers, including contact details, passport copies, absences, biometric residence permits, employment contracts, and National Insurance numbers. Report changes in circumstances, such as changes in business ownership or sponsorship status, via the SMS.
Sponsor Licence Compliance Visit
The UKVI may conduct planned or unplanned compliance visits to ensure you are meeting your sponsorship duties. Compliance officers will check your systems for record-keeping, reporting, and monitoring. Non-compliance can result in downgrading, suspension, or revocation of your sponsor licence.
Validity and Renewal of Sponsor Licence
Sponsor licences are valid for four years, with the requirement to renew every four years being abolished from April 2024. However, businesses sponsoring UK Expansion Workers cannot renew beyond two years, and Scale-up sponsor licences cannot be renewed beyond four years. These businesses may apply for a different worker licence, such as the Skilled Worker licence.
Sponsor Licence Rating
Sponsor licences are rated ‘A’ or ‘B’. New licences are A-rated. If the Home Office has concerns, a licence can be downgraded to B, restricting the issuance of new CoS until improvements are made. Failure to address compliance issues can lead to licence revocation.
Sponsor Licence Renewal Application
To avoid interruptions in sponsorship, apply for renewal before your licence expires. Ensure you meet all sponsorship requirements and maintain necessary systems and processes. Engage our leading London law firm to assist with renewal applications, ensuring continued compliance and successful sponsorship.
Conclusion
A UK sponsorship licence is essential for businesses looking to hire international talent. The application process requires meticulous preparation and compliance with Home Office standards. By engaging our leading London law firm, you can ensure your application is comprehensive and compliant, giving you the best chance of success in acquiring and maintaining your sponsor licence. Contact us today to streamline your sponsorship licence and skilled worker visa applications.
Why Instruct DJF Solicitors?
Our immigration lawyers have extensive experience in preparing Sponsor Licence applications for businesses/employers regardless of whether the employer is a start up or large enterprise. Our immigration team can offer the following services:
- Consultation with our experienced business immigration solicitors who can advise on the eligibility criteria of a Sponsor Licence application;
- Provide the business/company with a bespoke supporting documents list which will assist in collating documents required for the Sponsor Licence application;
- Prepare the relevant application form and detailed legal representations to accompany the application; and
- If necessary liaise with the Home Office to track the progress of the application.
We are an Immigration law firm based in Middle Temple, London and our solicitors are fully authorised by the Solicitors Regulation Authority (SRA). Contact our specialist immigration team today and we can offer you a consultation in person or via telephone or Skype so we can explore your options. You can leave us a message on our Contact Form or give us a call on 02030110276.