FAQ on UK Sponsor Licence: 2025 Updates

A Sponsor Licence is a legal requirement for UK employers who wish to hire skilled workers from outside the UK. It allows businesses to sponsor migrants under various visa routes, such as the Skilled Worker Visa, Global Business Mobility, and Scale-Up Visa. Without a valid Sponsor Licence, you cannot legally employ non-UK residents who require a visa to work in the UK.

Any UK-based employer planning to hire non-UK nationals who require a work visa must obtain a Sponsor Licence. This includes:

• Skilled Worker Visa sponsors
   
• Global Business Mobility sponsors
   
• Scale-Up Visa sponsors
   
• Temporary Worker sponsors
   

Private individuals cannot apply for a Sponsor Licence unless they are sole traders sponsoring someone to work in their business.

To be eligible for a Sponsor Licence, your business must:

• Be a genuine organisation operating lawfully in the UK
   
• Have a lawful trading presence in the UK
   
• Demonstrate the ability to meet sponsor duties and responsibilities

• Not take part in any actions that are conducive to the public good

• Provide supporting documents, such as:

  • Recent business bank statement or a letter from the UK bank detailing your business transactions

  • Proof of employer’s liability insurance coverage up to £5million

  • Proof of ownership or lease agreement for the business premises

  • Certificate of VAT registration

  • Evidence of registration as an employer with HM Revenue and Custom

  • Latest annual accounts

The ‘Worker’ (formerly Tier 2) routes are for skilled, long-term workers. When applying for a Sponsor Licence, you must choose from five specific ‘Worker’ routes:

Skilled Worker (formerly Tier 2 General) – allows employers to recruit migrants for specific jobs in the UK.
 

Global Business Mobility – suitable for international businesses. 
 

Senior or Specialist Worker – for overseas workers undertaking temporary work assignments in the UK, where the worker is a senior manager or specialist employee assigned to a UK business linked to their employer overseas.
 

Graduate Trainee – for overseas workers on a graduate training programme leading to a senior management or specialist position, who are required to complete a work placement in the UK.
 

International Sportsperson – for elite sportspersons or qualified sports coaches who are internationally established and can make a significant contribution to the development of their sport at its highest level in the UK.T2 Minister of Religion – for the recruitment of a person who has a key leading role within their faith-based organisation or religious order in the UK.
 

You can apply for multiple licence types using the same application form.

The application process involves the following steps:

1. Check Eligibility: Ensure your business meets the Home Office’s requirements.
    
2. Appoint Key Personnel: Nominate an Authorising Officer, Key Contact, and Level 1 User to manage the licence.
    
3. Prepare Supporting Documents: Gather documents such as bank statements, VAT registration, and proof of business premises, cover letter, etc.
    
4. Submit the Online Application: Complete the application form on the Home Office website and pay the fee (£536 for small companies, £1,476 for medium/large companies).

      A company is considered ‘small’ if it meets two or more of the following criteria for the past year:

• Annual turnover is less than £10.2 million

• Total assets are less than £5.1 million

• Fewer than 50 employees
   

v. Await Decision: The Home Office typically processes applications within 7-8 weeks, but you can opt for the Priority Service for a decision within 10 working days (additional £500 fee).

As a licensed sponsor, you must:

• Ensure all sponsored workers meet the eligibility criteria for their visa.
   
• Monitor their attendance and report any changes (e.g., absences, job changes) to the Home Office.
   
• Keep accurate records of sponsored workers’ immigration status and employment details.
   
• Comply with Home Office regulations to avoid penalties, such as licence suspension or revocation.
   

Read more about sponsorship responsibilities and ensuring compliance in our detailed guide. 

The Sponsorship Management System (SMS) is an online portal where sponsors manage their duties. Key functions include:

• Assigning Certificates of Sponsorship (CoS) to migrant workers.
   
• Reporting changes in workers’ employment status.
   
• Updating company details (e.g., address, key personnel, etc).
   
• Reporting workers' activities 
   
• Staying updated on Home Office rule changes

Only Level 1 Users have full access to the SMS, but they can grant access to Level 2 Users for specific tasks.

The costs include:

• Application Fee: £536 for small companies/charities, £1,476 for medium/large companies.
   
• Priority Service Fee: £500 (optional, for faster processing). 
   

• Immigration Skills Charge: When assigning a Certificate of Sponsorship for a Skilled Worker or Senior or Specialist Worker visa, you may need to cover an extra fee known as the immigration skills charge.
   

  This charge applies if the applicant is:

  • Applying from outside the UK for a role lasting six months or more
  • Applying from within the UK, regardless of the duration

       The fee depends on the size of your organisation and on how long the worker will work for you:
 

Starting 6 April 2024, sponsor licence holders will no longer be required to renew their licence.
 

From this date, sponsor licences will remain valid permanently unless the Home Office revokes or places them on hold, or if the licence holder decides to surrender it.

If your licence is revoked, you:

• Cannot sponsor new workers.
   
• Must stop employing existing sponsored workers (unless they switch to another visa).
   
• May face a cooling-off period of 6 months before reapplying.

Common reasons for revocation include:

• Failure to meet sponsor duties.
   
• Providing false or misleading information.
   
• Non-compliance with Home Office regulations.

Learn about maintaining compliance duties in our guide.