Secure a Sponsor Licence for Start-Ups in the UK
As a start-up or growing business, expanding your workforce to include overseas talent can offer substantial benefits. However, before you can begin recruiting internationally, you must secure a sponsor licence from UK Visas and Immigration (UKVI). This licence is essential for any UK business seeking to hire skilled workers from abroad by issuing Certificates of Sponsorship (CoS). Obtaining a sponsor licence, however, is a detailed and regulated process, and it is crucial to ensure you meet all the requirements set out by the Home Office.
Eligibility Criteria for a Sponsor Licence
The majority of UK businesses are eligible to apply for a sponsor licence, though certain restrictions apply. To qualify, your business must:
- Not have any unspent criminal convictions for immigration offences, fraud, or similar crimes such as money laundering;
- Not have had a sponsor licence revoked within the last 12 months.
In addition to these basic criteria, you will need to demonstrate that you have robust systems in place to manage the sponsorship of overseas workers. This includes being able to monitor your sponsored employees and ensuring compliance with UKVI’s requirements.
Your business must also meet the minimum wage and visa requirements for the roles you are looking to sponsor. These requirements will vary depending on the visa category you are using to recruit, such as the Skilled Worker visa or the Global Business Mobility visa.
If you plan to sponsor religious, creative workers or international sportspeople, additional requirements will apply. We strongly recommend seeking advice from a specialist immigration solicitor to ensure you fully understand the specific criteria relevant to your circumstances.
Types of Sponsor Licences
There are two primary types of sponsor licences available, and it is crucial to apply for the correct licence to meet your recruitment needs. The two categories are:
- Worker Licences – for long-term, skilled roles, including the Skilled Worker visa and the Senior or Specialist Worker visa (Global Business Mobility).
- Temporary Worker Licences – for short-term or temporary employment, such as the Scale-up Worker visa or Seasonal Worker visa.
The full range of visa categories includes:
- Skilled Worker
- Minister of Religion
- International Sportsperson
- Creative Worker
- Charity Worker
- Government Authorised Exchange
- Seasonal Worker
- And several others under the Global Business Mobility category.
It is important to note that possessing a sponsor licence does not permit you to sponsor workers for any role; the role must be eligible under the specific visa category you hold. Failure to align the job role with the correct visa type can result in your licence being downgraded, suspended, or revoked.
If you are uncertain which licence best suits your needs, our expert solicitors at Axis Solicitors can provide tailored advice based on your business’s recruitment strategy, ensuring you are applying for the correct licence.
Key Roles in Sponsorship Management
Once you have obtained your sponsor licence, you will be required to manage your sponsorship duties via UKVI’s Sponsorship Management System (SMS). Certain key roles must be filled within your organisation to ensure compliance with UKVI requirements:
- Authorising Officer – a senior and competent individual responsible for the oversight of the sponsor licence and the actions of those using the SMS.
- Key Contact – the main point of contact between your business and UKVI.
- Level 1 User – responsible for the day-to-day management of the licence, including assigning CoS to sponsored workers.
- Level 2 User – manages specific administrative tasks with fewer permissions than a Level 1 User.
These roles must be filled by individuals who are based in the UK and pass a series of suitability checks, including having no unspent criminal convictions and no prior involvement with a sponsor licence that has been revoked within the last 12 months.
Sponsorship Duties and Compliance Obligations
Holding a sponsor licence carries a significant responsibility. UKVI requires that all sponsors comply with a range of duties, which include:
- Maintaining up-to-date and accurate records for all sponsored workers;
- Reporting changes, such as changes to employment or contact details, to UKVI;
- Ensuring that sponsored workers have valid visas and remain compliant with their visa conditions;
- Adhering to UK immigration laws;
- Not engaging in any actions that could be deemed as not conducive to the public good.
Failure to comply with these duties can lead to severe consequences, including the downgrading, suspension, or revocation of your sponsor licence. This could ultimately impact your ability to sponsor future workers and may lead to the curtailment of existing sponsored workers’ visas.
At Axis Solicitors, we can assist you in setting up the necessary systems and processes to ensure ongoing compliance with your sponsorship duties.As well as provide ongoing support to help you maintain your licence and avoid potential breaches of compliance.
How to Apply for a Sponsor Licence
Once you have established that your business meets the eligibility criteria and you are confident in your ability to meet your sponsorship duties, you can begin the application process. The steps are as follows:
- Complete the online sponsor licence application form via the UKVI portal.
- Pay the appropriate application fee: £536 for small or charitable sponsors, or £1,476 for medium or large sponsors.
- Submit supporting documentation as required.
- Send the submission sheet (generated at the end of the application) to UKVI by post.
After submission, UKVI will typically make a decision within 8 weeks. For businesses requiring a faster decision, there is an option to pay an additional £500 for a decision within 10 working days.
What if Your Application is Refused?
In the event that your sponsor licence application is refused, all is not lost. There are several steps that can be taken to address the refusal, including requesting a review of the decision or submitting a fresh application. Our experienced solicitors at Axis Solicitors can guide you through this process, liaising with UKVI on your behalf and advising on the best course of action to ensure a successful outcome.
Legal Services
Securing a sponsor licence is a vital step in enabling your business to recruit skilled overseas talent. However, this process involves a range of legal obligations and duties that cannot be overlooked. At Axis Solicitors, we specialise in business immigration law and are committed to providing tailored advice and assistance to ensure your business can secure and maintain a sponsor licence. From helping you through the application process to supporting your ongoing compliance, our expert solicitors are here to help you succeed.
Contact Axis Solicitors today for professional, reliable legal advice on securing your sponsor licence and expanding your workforce.
