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An employer’s guide to applying for a sponsor licence

Our immigration experts outline the essentials of a sponsor licence for businesses wishing to hire non-UK nationals.

What is a sponsor licence?

A sponsor licence is a legal requirement if your business wants to sponsor non-UK nationals under certain work visa routes, those who are based overseas or within the UK (those “switching” into the Skilled Worker visa from most other visa types, for example, Student visa). This includes citizens of the EU, Iceland, Liechtenstein, Norway and Switzerland who arrived in the UK after 31 December 2020. Being able to hire overseas skilled talent may be vital to the successful operation and growth of many businesses due to the skills shortages in the UK labour market.

How do we get a sponsor licence?

  1. Check if your business is eligible.
  2. Check if the job is suitable for sponsorship.
  3. Choose the type of licence you want to apply for — this will depend on what type of worker you want to sponsor (the most common type are: Skilled Worker and Senior or Specialist Worker visa (Global Business Mobility)
  4. Decide who will manage the sponsor licence within your business.
  5. Apply online and pay the fee.

What are the most common licence categories?

Skilled Worker (formerly Tier 2 General)

A Skilled Worker visa allows you to come to or stay in the UK to do an eligible job with an approved (UK) employer.

Senior or Specialist Worker Visa — Global Business Mobility (GBM) (formerly Tier 2 Intra-company Transfer)

If you are an international business that needs to send workers to the UK for a specific purpose, you may apply for a Global Business Mobility (GBM) sponsor licence.

Other licence types

There are other types of licence:

  • Worker Routes: international sportsperson, Minister of Religion.
  • Temporary Worker Routes: Creative Worker, Charity Worker, Religious Worker, Seasonal Worker, Scale-up Worker, Government Authorised Exchange, Graduate Trainee (Global Business Mobility), Service Supplier (Global Business Mobility), UK Expansion Worker (Global Business Mobility), Secondment Worker (Global Business Mobility),

Key personnel

You will need to appoint people within the business to manage the sponsor licence:

  • Authorising Officer — a senior and competent person responsible for the actions of staff and representatives who use the SMS
  • Key contact — the main point of contact with UK Visas and Immigration (UKVI)
  • Level 1 Users — responsible for the day-to-day management of the licence using the Sponsor Management System (SMS). Note that you should have more than one level 1 user, to cover any absences and ensure reporting responsibilities are complied with. Your legal representative can be added to also act as key contact and level 1 user and can then assist with managing your sponsor licence.

Eligibility criteria and application process

When applying, you must follow the sponsor licence guidance and meet certain eligibility criteria.

The business must:

  • Have a physical presence in the UK
  • Have suitable HR systems in place to meet their sponsor duties
  • Be ready in the event of a UKVI compliance visit, whether announced or unannounced
  • Have no unspent criminal convictions for previous immigration offences or tax evasion
  • Have no evidence of non-compliance with previous sponsorship licences
  • Not have had a sponsor licence revoked in the last year

If you have multiple UK branches, you may apply for one licence to cover all your linked UK entities – alternatively, you might apply for a separate licence for each branch, depending on your circumstances.

The exact documents required can vary depending on the age and nature of the business. The process requires necessary evidence to be provided. You must provide at least four supporting documents. This will be an combination of documents in Appendix A, e.g.

  1. VAT registration certificate.
  2. The company’s latest audited financial statements with the name of the accountant clearly shown, together with the most recently filed accounts (possible available on Companies House online.
  3. The company’s business bank statement.
  4. Evidence of employers’ liability insurance cover for no less than £5 million from an authorised insurer
  5. Evidence of registration as an employer to pay PAYE and NI
  6. Proof of ownership or lease of your business premises

The failure to comply with the requirement to provide evidence would raise doubts as to the ability of the company to comply with their duties as a sponsor.

Licence fee

The fee depends on the type of licence the business is applying for and what type of organisation it is:

Type of licence Fee for small or charitable sponsors Fee for medium or large sponsors
Worker £536 £1,476
Temporary Worker £536 £536

These fees are payable to UKVI directly.

How long does the licence decision take?

Most applications are dealt with within eight weeks. 

Your business may be able to pay an extra £500 to get a decision within 10 working days. This service is limited to a small number of applications every working day.

Renewal

The licence usually stays valid for as long as you continue to meet the eligibility requirements.

However, you may lose the licence if you do not meet the responsibilities as a sponsor.

Licence rating

Your business will get an A-rated licence if your application is approved. Your business will be listed in the register of sponsors.

The A-rated licence may be downgraded to a B-rating at a later stage if you do not continue to meet your sponsor responsibilities. If this happens, you will need to follow an ‘action plan’ provided by UK Visas and Immigration and will not be able to hire any new migrant workers.

Summary

Sponsor licences are an important part of the UK’s immigration system, designed to regulate and facilitate the employment of skilled workers from overseas.

Having a sponsor licence facilitates access to a global talent pool, providing a competitive edge in the marketplace. It enables employers to plug skills gaps and encourage a diverse and innovative work environment.

At Weightmans, we understand that navigating the immigration rules and understanding your duties as a sponsor can be complex. Any errors can result in delays or refusals. We can walk you through the application process to obtain the outcome your business needs. We can provide you with practical and tailored solutions that meet your specific needs and circumstances.

For advice and help with immigration queries, contact carolyn.bowie@weightmans.com in the first instance.

For more information or support on applying for a sponsor licence, contact our immigration solicitors.

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