Hiring skilled overseas workers allows UK businesses to grow, innovate, and fill critical skill gaps. However, to legally employ most non-UK nationals, employers must obtain a UK Sponsor Licence from the Home Office.
This complete guide explains everything employers need to know about the UK Sponsor Licence, including eligibility, requirements, costs, processing time, compliance duties, and how to avoid refusal.
What Is a UK Sponsor Licence?
A UK Sponsor Licence is formal permission issued by the UK Home Office that allows an organisation to sponsor overseas workers under approved work visa routes.
By holding a Sponsor Licence, an employer confirms that they are a genuine UK business and that they can meet strict immigration compliance responsibilities. Without a valid Sponsor Licence, most UK employers cannot legally hire foreign workers.
Sponsor Licence vs Certificate of Sponsorship (CoS)
A Sponsor Licence and a Certificate of Sponsorship are not the same.
The Sponsor Licence authorises the employer to sponsor workers.
A Certificate of Sponsorship (CoS) is a digital reference number assigned to an individual worker, allowing them to apply for a work visa.
An employer must have a Sponsor Licence before issuing a CoS.
Types of UK Sponsor Licences
Worker Sponsor Licence
This licence is used for long-term employment and includes routes such as the Skilled Worker visa and the Senior or Specialist Worker route under Global Business Mobility.
Temporary Worker Sponsor Licence
This licence is suitable for short-term or specific work categories, including Seasonal Worker, Charity Worker, Creative Worker, and Government Authorised Exchange.
Employers can apply for one or both licence types depending on their hiring needs.
Who Needs a Sponsor Licence?
A Sponsor Licence is required if you are a UK-based employer and wish to hire non-UK nationals for roles that are not exempt from immigration control.
This applies to small businesses, startups, medium and large companies, recruitment agencies, and educational institutions.
Sponsor Licence Eligibility Requirements
To qualify for a Sponsor Licence, your organisation must meet several criteria.
You must be a genuine business legally operating in the UK.
You must have proper HR and record-keeping systems in place.
You must be capable of monitoring sponsored workers and reporting changes to the Home Office.
You must not have a history of serious immigration breaches or unspent criminal convictions.
Documents Required for a Sponsor Licence Application
Supporting documents play a crucial role in the approval process. Commonly required documents include proof of business registration, HMRC and PAYE registration, corporate bank statements, employer’s liability insurance, and evidence of business premises.
Submitting incorrect or incomplete documents is one of the most common reasons for Sponsor Licence refusal.
How to Apply for a UK Sponsor Licence
The application process begins with completing the online Sponsor Licence application form on the Home Office website.
Once the form is submitted, the relevant application fee must be paid.
Supporting documents must then be sent to the Home Office within five working days.
The Home Office may request further information or conduct a compliance visit to assess your HR systems.
Sponsor Licence Application Fees
The application fee depends on the size and type of the business. Smaller or charitable organisations pay a lower fee, while medium and large businesses pay a higher fee.
Additional costs may apply later, such as the Immigration Skills Charge and Certificate of Sponsorship fees.
Sponsor Licence Processing Time
In most cases, Sponsor Licence applications are processed within eight weeks.
A priority service may be available for faster decisions, but availability is limited. Delays often occur due to documentation issues or concerns about compliance systems.
Sponsor Duties and Compliance Responsibilities
Holding a Sponsor Licence comes with ongoing responsibilities.
Employers must keep accurate records of sponsored workers, including right-to-work checks and contact details.
They must report changes such as non-attendance, job role changes, or early termination through the Sponsor Management System.
They must also cooperate with Home Office audits and inspections.
Failure to meet these duties can result in licence suspension or revocation.
Certificate of Sponsorship (CoS) Explained
A Certificate of Sponsorship contains key details about the job role, salary, and employment duration.
There are two types of CoS. A Defined CoS is used for workers applying from outside the UK, while an Undefined CoS is used for workers applying from inside the UK.
Assigning the wrong type of CoS can lead to visa refusal.
Common Reasons for Sponsor Licence Refusal
Sponsor Licence applications may be refused due to poor HR systems, missing documents, non-genuine job roles, failure during a compliance visit, or previous immigration non-compliance.
How to Avoid Sponsor Licence Refusal
Employers can reduce refusal risk by conducting a pre-application compliance audit, ensuring job roles are genuine and correctly described, training staff on sponsor duties, and seeking professional immigration advice.
Sponsor Licence Renewal and Suspension
A Sponsor Licence is valid for four years and must be renewed before it expires.
The Home Office can suspend or revoke a licence if an employer fails to meet compliance requirements. A revoked licence can seriously disrupt business operations and sponsored workers’ visas.
Benefits of Holding a UK Sponsor Licence
A Sponsor Licence allows businesses to access a global talent pool, fill skill shortages, support long-term growth, and strengthen workforce stability.
It also enhances an organisation’s credibility and competitiveness in the UK market.
How Immigration Experts Can Help
Immigration specialists can assist with eligibility checks, document preparation, application submission, compliance audits, and ongoing sponsor management.
Professional support helps reduce delays, refusals, and compliance risks.
Frequently Asked Questions
How long does a UK Sponsor Licence last?
A Sponsor Licence is valid for four years.
Can a small business apply for a Sponsor Licence?
Yes, small businesses and startups can apply if they meet the requirements.
Can I sponsor workers from outside the UK?
Yes, employers can sponsor overseas workers using a Defined Certificate of Sponsorship.
What happens if a Sponsor Licence is revoked?
Sponsored workers’ visas may be curtailed, and the employer may face restrictions on reapplying.
Is a Sponsor Licence transferable?
No, a Sponsor Licence is linked to one legal entity and cannot be transferred.
Conclusion
A UK Sponsor Licence is essential for employers who want to legally hire overseas workers. While the process requires careful preparation and ongoing compliance, the benefits for business growth and workforce development are significant.
With the right guidance and planning, employers can secure and maintain their Sponsor Licence successfully.