Self-Sponsorship Skilled Worker Visa

What is the Self Sponsorship Visa?

Self-sponsorship is an immigration strategy that enables non-UK citizens to relocate to Britain by establishing or acquiring a business through which they can sponsor their own work visa.

Whilst not an official visa category, ‘self-sponsorship’ describes the process where foreign nationals can sponsor themselves to work through their own business, rather than requiring sponsorship from an existing UK employer.

This is achieved by establishing or acquiring a UK-based company, which then applies for a sponsor licence from the UK Home Office. Once approved as a licensed sponsor, the company can issue a Certificate of Sponsorship (CoS) to the business owner, who then applies for a Skilled Worker visa.

The process involves three key stages:

1. Establishing a Legitimate UK Business The individual must set up and register a compliant business in the UK, ensuring it meets all legal requirements.
2. Obtaining a Sponsor Licence The business applies to the UK Home Office for authorisation to sponsor employees through a sponsor licence application.
3. Business Owner Sponsorship Following licence approval, the business owner can be sponsored by their own company as an employee, enabling them to apply for a Skilled Worker visa.

Self-sponsorship is particularly suited to entrepreneurs, business owners and skilled professionals who wish to establish or expand their enterprise in the UK. It offers the unique advantage of being both employer and sponsored employee, providing greater autonomy over one’s professional development.

Is There a Self Sponsorship Visa?

Whilst there is no dedicated self-sponsorship visa category in the UK, you may establish or invest in a UK-based business and, after obtaining Home Office approval for a sponsor licence, arrange for your business to sponsor you under the Skilled Worker route.

If you already own or co-own a UK business, this could provide an ideal solution, provided your company meets the requirements to become a licensed sponsor and you satisfy the Skilled Worker visa criteria.

The process involves four key stages:

1. Establishing Your UK Business 

You must either acquire an existing UK company or establish a new business, which involves registering with Companies House, selecting an appropriate business structure (such as a limited company), and fulfilling all legal and tax obligations. Your business must demonstrate viability and meet the prerequisites for sponsor licence approval.

2. Obtaining Your Sponsor Licence 

Your company must apply to UK Visas and Immigration (UKVI) for a sponsor licence. This authorises your business to issue Certificates of Sponsorship (CoS) to migrant workers under the Skilled Worker route. You’ll need to provide documentation proving legitimate business operations, genuine employment opportunities, and appropriate systems for monitoring sponsored employees. Standard processing typically takes eight weeks, assuming no compliance inspection is required.

3. Securing Your Skilled Worker Visa 

Once licensed, your business can issue you a Certificate of Sponsorship, enabling your Skilled Worker visa application. You must demonstrate that you have a genuine job role meeting the route-specific requirements. The application requires submission of your CoS, proof of financial means, and evidence of English language proficiency. Processing times vary depending on whether you choose standard or priority service.

4. Maintaining Compliance 

Following licence and visa approval, your business must maintain ongoing compliance with Home Office regulations. This includes:

• Ensuring sponsored employees meet visa conditions, including salary thresholds
• Monitoring visa expiry dates
• Maintaining accurate records
• Reporting significant changes in employment circumstances

Failure to maintain compliance could result in licence revocation, affecting your visa status and potentially leading to consequences for your business.

Setting Up Your UK Business for Self-Sponsorship

Establishing a UK company is the first crucial step in the self-sponsorship process. Here’s what you need to know:

Choosing Your Business Structure

For self-sponsorship, a Private Limited Company (Ltd) is typically most suitable. This structure provides limited liability protection and is more likely to meet sponsor licence requirements. Your company must have at least one director and one shareholder.

Essential Registration Steps

1. Companies House Registration You’ll need to register your company with Companies House, providing your unique company name, UK registered office address, details of directors (at least one UK-based for sponsorship purposes), shareholders, and your SIC code identifying your business activity. Registration typically takes 1-3 working days.
2. Legal Documentation You must prepare your Memorandum and Articles of Association – the legal documents governing your company’s operations and stakeholder rights. Whilst standard templates are available, professional legal advice is recommended.
3. Financial Setup Opening a UK business bank account is essential for demonstrating your company’s financial viability during the sponsor licence application. You’ll need to provide proof of company registration and director identification.
4. Tax Registration Your company must register for:
   
   • Corporation Tax within three months of starting business activities
   • VAT if your turnover will exceed £90,000 annually
   • PAYE (Pay As You Earn) for managing employee tax and National Insurance

Business Planning

A comprehensive business plan is vital for your sponsor licence application. This should detail:

• Clear business objectives
• Market analysis
• Financial forecasts
• Staffing plans, including projected hires and roles

Regulatory Compliance

Your business must comply with all UK regulations covering:

• Employment law
• Health and safety
• Insurance requirements
• Data protection

Applying for Your UK Sponsor Licence

Once your company is registered and operational, you’ll need to obtain a sponsor licence from the UK Home Office to sponsor employees, including yourself, for a Skilled Worker visa. Your business must demonstrate legitimacy, financial stability, and capability to fulfil sponsorship duties.

The Application Process

Your UK business must first register with UK Visas and Immigration (UKVI) before submitting the online application via GOV.UK. You’ll need to appoint key personnel:

• Authorising Officer (AO): The most senior person responsible for migrant worker recruitment
• Key Contact (KC): Main point of contact with UKVI
• Level 1 User: Manages the Sponsorship Management System (SMS) and assigns Certificates of Sponsorship

These roles may be filled by the same person or different individuals, but they must be UK-based paid staff or office-holders. Additional Level 1 and Level 2 users can be appointed once your licence is granted.

Documentation Requirements

You must submit several supporting documents within five working days of your application, including:

• Application submission sheet (signed and dated by the AO)
• Documents specified in Sponsor Guidance Appendix A
• Evidence of genuine employment opportunities

It’s crucial to demonstrate that any sponsored role is genuine and not created solely for visa purposes, as this would result in licence refusal.

Costs

Licence application fees vary by business size:

• Small or charitable organisations (annual turnover below £10.2 million and fewer than 50 employees): £536
• Medium or large organisations: £1,476

Additional costs include:

• Certificate of Sponsorship fees
• Immigration Skills Charge (ISC):
  
  • Small/charitable organisations: £364 for first year, £182 per additional six months
  • Medium/large organisations: £1,000 for first year, £500 per additional six months

Processing and Approval

Standard processing takes up to eight weeks, though this may extend if UKVI conducts a compliance visit. Successful applications result in an A-rated sponsor licence and access to the Sponsorship Management System.

Applying for Your Skilled Worker Visa Through Self-Sponsorship

Once your company has obtained its sponsor licence and issued your Certificate of Sponsorship (CoS), you can apply for your Skilled Worker visa. This visa allows you to live and work in the UK for up to 5 years, with options for unlimited renewals and a path to permanent residence.

Key Visa Requirements 

To qualify, you must:

• Have a genuine job offer from your UK company
• Work in an eligible occupation
• Meet the minimum salary threshold (typically £38,700 or the ‘going rate’ for your role, whichever is higher)
• Demonstrate English language proficiency at CEFR Level B1
• Have £1,270 in savings (unless your company certifies maintenance)

The Genuine Vacancy Requirement 

This is particularly crucial for self-sponsorship. Your company must demonstrate that:

• The role is genuine and exists within the business
• The position wasn’t created solely to facilitate your visa
• There’s a legitimate business need for the role
• You have the necessary qualifications and experience

Application Process

1. Online Application Submit your application through UK Visas and Immigration (UKVI), including:
   
   • Personal information
   • CoS details
   • Supporting documentation
2. Identity Verification Either use the ‘UK Immigration: ID Check’ app or attend a Visa Application Centre (VAC) for biometric collection.
3. Supporting Documents
   
   • Valid passport
   • Proof of funds (if required)
   • English language evidence
   • Other role-specific certificates

Costs

• Application fee: £719-£1,420 (outside UK) or £827-£1,636 (inside UK)
• Immigration Health Surcharge: £1,035 per year
• CoS fee: £239 (paid by sponsor)
• Optional priority services available

Processing Times 

Standard processing takes:

• Outside UK: 3 weeks
• Inside UK: 8 weeks

Priority services available for faster decisions (additional fees apply).

Family Members 

Your spouse/partner and dependent children can join you in the UK. They’ll need to:

• Pay separate application fees and health surcharge
• Meet financial requirements (£285 for partner, £315 first child, £200 each additional child)
• Apply either with you or later

Visa Extension and Settlement

• Can apply to extend your visa before expiry
• Eligible for Indefinite Leave to Remain after 5 years
• Must maintain eligible employment and meet salary requirements
• Need to pass the Knowledge of Language and Life in the UK test

Maintaining Compliance:  Sponsorship Duties

As both a sponsor licence holder and Skilled Worker visa holder, you must maintain strict compliance with UK Home Office requirements. Here’s what you need to know:

Business Responsibilities

Your company must actively monitor and maintain records for all sponsored employees, including:

1. Employee Monitoring
   
   • Track visa expiration dates
   • Ensure work conditions match CoS details
   • Monitor working hours and locations
2. Record Keeping
   
   • Maintain copies of identity documents and visas
   • Store employment contracts and salary records
   • Keep qualification certificates
   • Document attendance and absences
3. Home Office Reporting Report within 10 working days:
   
   • Changes in employment conditions
   • Business structure changes
   • Compliance issues or breaches
4. Compliance Audits Be prepared for Home Office inspections of:
   
   • Employee records
   • Financial documentation
   • Sponsorship compliance systems

Personal Visa Obligations

As a self-sponsored Skilled Worker, you must:

1. Work Requirements
   
   • Maintain the role specified in your CoS
   • Meet minimum salary thresholds
   • Work only in approved positions
2. Status Management
   
   • Keep your visa valid
   • Apply for extensions before expiry
   • Maintain current passport
3. Personal Updates Report changes to:
   
   • Address and contact details
   • Marital status
   • Immigration status

Compliance Implications Failure to meet these obligations could result in:

• Sponsor licence suspension or revocation
• Visa cancellation
• Impact on your ability to remain in the UK

Note: Given the dual responsibilities of self-sponsorship, maintaining robust compliance systems is crucial. We recommend regular internal audits and seeking professional guidance for significant changes to either your business or visa status.

Alternative Route: The Innovator Founder Visa

Whilst self-sponsorship provides business owners with considerable control, its strict requirements may not suit everyone. The Innovator Founder visa offers an alternative pathway for entrepreneurs looking to establish businesses in the UK.

Understanding the Innovator Founder Visa

This visa category is specifically designed for overseas entrepreneurs establishing innovative businesses in the UK. Unlike self-sponsorship, it doesn’t require a sponsor licence, effectively allowing entrepreneurs to “self-sponsor” by meeting specific criteria.

Recent changes have made this route more accessible by removing the previous £50,000 minimum investment requirement. However, you must secure endorsement from an authorised body before applying.

The Endorsement Process

Your business idea must demonstrate three key qualities:

1. Innovation
   
   • Meets new market needs
   • Creates competitive advantage
2. Viability
   
   • Realistic and achievable plans
   • Matched to your skills and experience
3. Scalability
   
   • Potential for job creation
   • Growth prospects nationally and internationally

Comparing Routes

Innovator Founder Visa

• Focus on innovative business concepts
• Three-year initial grant
• Path to settlement based on business growth
• Requires endorsement but no sponsor licence
• Suited to groundbreaking ventures

Self-Sponsored Skilled Worker Visa

• Focus on employment and business operations
• Five-year maximum initial grant
• Path to settlement through continuous employment
• Requires sponsor licence and ongoing compliance
• Suited to traditional business models

Choosing Your Route

Your choice should depend on:

• Whether your business is innovation-focused or traditionally structured
• Your preference for endorsement versus sponsorship requirements
• Your long-term settlement plans
• Your business’s alignment with UK market needs

Note: Both routes offer paths to permanent residence, but their requirements and focuses differ significantly. Professional guidance can help determine which better suits your circumstances and business plans.

UK Self-Sponsorship Services

At Axis Solicitors, we guide entrepreneurs and skilled professionals through the complexities of UK self-sponsorship. This strategic immigration route enables you to establish or acquire a UK business and sponsor your own work visa.

Our Services

We assist you through each stage:

1. Business Establishment
   
   • Company registration and structure
   • Legal and tax compliance
   • Business plan development
2. Sponsor Licence Application
   
   • Documentation preparation
   • Compliance systems setup
   • Home Office submissions
3. Skilled Worker Visa
   
   • Certificate of Sponsorship issuance
   • Visa application support
   • Financial and English language requirements
4. Ongoing Compliance
   
   • Licence management
   • Record-keeping systems
   • Home Office reporting

Why Choose Axis Solicitors?

Our experienced immigration team understands the intricacies of self-sponsorship. We ensure your business meets all regulatory requirements while protecting your immigration status. From initial setup to ongoing compliance, we provide the expertise needed to make your UK business aspirations a reality.

Take the Next Step

Contact us today to discuss your self-sponsorship plans. Our specialists will assess your circumstances and guide you through the most appropriate route for your UK business journey.