Guide to Self-Sponsorship in the UK 2025: How to Sponsor Yourself as a Business Owner

For many entrepreneurs and skilled professionals, the desire to move to the UK and work can be complicated by visa requirements. While there is no dedicated "self-sponsorship visa" in the UK, individuals can take advantage of existing routes – like the Skilled Worker visa – by sponsoring themselves through their own UK business. Additionally, the Innovator Founder Visa can be considered as an alternative route for those looking to start an innovative business in the UK.

In this comprehensive guide, we’ll explore the ins and outs of self-sponsorship, covering key details like visa options, eligibility requirements, application steps, fees, and ongoing compliance.

What is Self-Sponsorship?

Self-sponsorship is a strategy that allows foreign nationals to move to the UK by setting up or buying into a business that can sponsor their own work visa. Unlike traditional sponsorship, where a UK employer sponsors the visa, the individual sponsors themselves through their own business.

This process is ideal for entrepreneurs, business owners, and skilled professionals who want control over their work and business in the UK. The self-sponsorship process typically involves the following steps:

1. Establish a UK Business : Set up a legitimate company in the UK or buy into an existing one.
    
2. Obtain a Sponsor Licence : Apply for a Sponsor Licence from the UK Home Office.
    
3. Assign a Certificate of Sponsorship (CoS) : The business (owned by you) assigns a CoS to yourself as an employee.
    
4. Apply for a Skilled Worker Visa : Using the CoS, you apply for a Skilled Worker visa, enabling you to work in your business.

It's important to note that while there is no specific self-sponsorship visa, following this route via the Skilled Worker Visa allows you to essentially sponsor yourself.

Is There a UK Self-Sponsorship Visa?

Technically, the UK doesn’t offer a dedicated “self-sponsorship visa”. However, by following the self-sponsorship process through a Skilled Worker visa , entrepreneurs and business owners can effectively sponsor themselves.

Other visa routes, such as the Innovator Founder visa , may also be relevant for those who meet certain requirements for innovation and scalability in their business. The choice of route depends on your business's nature and whether it involves an innovative idea or a traditional business structure.

Stage 1: Establish a UK Business

The first step to self-sponsorship is establishing or acquiring a UK-based business. This involves several crucial steps to ensure legal compliance: 

 

1. Register the Company : Choose a business structure (e.g., Private Limited Company) and register with Companies House. 
   
    
2. Ensure Legal Compliance : Ensure the business meets all tax and legal obligations, including registering for Corporation Tax and, if necessary, VAT (If your company’s turnover exceeds £90,000 per year). If you intend to hire staff, including sponsoring yourself as an employee of your own business, you'll need to sign up for PAYE (Pay as You Earn) with HMRC. PAYE is the system used to handle income tax and National Insurance contributions for employees. 
   
    
3. Apply for Liability Insurance : You must obtain Employers' Liability (EL) insurance as soon as you become an employer – it will help cover compensation costs if an employee is injured or becomes ill due to their work. The policy must cover at least £5 million and be provided by an authorised insurer. Failure to have proper insurance can result in fines of £2,500 per day. 
   
    
4. Open a Business Bank Account : A UK bank account is essential for managing company finances and is required to demonstrate financial credibility when applying for a Sponsor Licence. Note that if the company has been incorporated within the past 18 months, the bank must be regulated by FCA and PRA for the Sponsor Licence application purposes. 
   
    
5. Prepare a Business Plan : A comprehensive business plan will demonstrate the viability of your business, outlining objectives, market research, financial forecasts, and staffing plans. 
   
    

Your business must be legally compliant and financially viable to secure a Sponsor Licence. If you are not based in the UK, you may still establish a UK company and even open a bank account with the help of professional services, but it may require additional documentation​.

It is possible to register a UK company from abroad. There is no requirement for a company director to be a UK resident or a British citizen. However, all directors, including those who reside outside the UK, must still adhere to specific legal responsibilities and obligations.

If a non-UK resident director is unable to carry out certain duties, such as attending board meetings or signing official documents in person, they have the option to appoint a UK-based representative to act on their behalf.

Stage 2: Apply for a Sponsor Licence

Once your business is established, the next step is to apply for a Sponsor Licence from the UK Home Office. This is required to sponsor yourself or other employees to work in the UK under the Skilled Worker route.

Key aspects of the Sponsor Licence application include: 
 

1. Sponsor Licence Application : The application is submitted to UK Visas and Immigration (UKVI), and the business must prove it can meet the sponsorship obligations, including offering genuine skilled employment. The application typically takes up to 8 weeks. 
   
    
2. Key Personnel : You’ll need to nominate personnel such as an Authorising Officer, Key Contact, and Level 1 User who will manage the sponsorship process. These individuals must be based in the UK and directly involved with the business. 
   
    
3. Supporting Documents : Submit at least four supporting documents from the list:
    

• Latest Company Tax Return CT600 or CT603
   
• Corporate or Business Bank Statements for the last 3 months (mandatory for new companies)
   
• Lease agreement (if any)
   
• Certificate of VAT registration (if any)
   
• PAYE and National Insurance registration letter from HMRC
   
• Certificate of Employers Liability Insurance (mandatory for new companies)
   
• Audited annual accounts (if any)
   
• Governing or Regulatory body registration (if any) 
  
   

Learn more about Sponsor Licence in our blog .

Stage 3: Assign a Certificate of Sponsorship (CoS)

Once the Sponsor Licence is approved, the next step is to assign a Certificate of Sponsorship (CoS) – it must be done by a Level 1 user; you can’t assign a CoS to yourself. This digital document is key for the Skilled Worker visa application.
 

The CoS must include:

• Job Details : Role, salary, and start date (no more than three months after the CoS is issued).
   
• Salary and Skill Requirements : Your role must meet the minimum salary threshold, which is usually at least £38,700 per year or the "going rate" for your specific job​.
   

Read our guide on Certificate of Sponsorship to learn more.

Stage 4: Apply for a Skilled Worker Visa

Once you have a valid CoS, you can apply for a Skilled Worker visa. To sponsor yourself for a Skilled Worker visa, you must meet several key requirements set by UK Visas and Immigration (UKVI). These include:
 

• You must be at least 18 years old
   
• Your UK-based company must be established, active, and legitimate
   
• The company must have successfully obtained a Skilled Worker Sponsor Licence
   
• A valid Certificate of Sponsorship must be assigned to you by your company for the role you intend to fill
   
• Your salary must meet or exceed both the general salary threshold and the going rate for your role as per the SOC 2020 occupation code
   
• The job offer must be for a genuine vacancy at the appropriate skill level – you should have evidence of job experience in the field where you intend to work
   
• You as a sponsor have paid the Immigration Skills Charge
   
• You must demonstrate proficiency in English, with a CEFR Level B1 (equivalent to IELTS 4.0) or higher
   
• You need to show that you have sufficient funds to support yourself without relying on public resources
   
• If applicable, you must provide a criminal record certificate

• If required, you must also provide a valid tuberculosis (TB) certificate

   

Submitting the Application : Provide your CoS, evidence of meeting the English language requirement (CEFR Level B1), and financial stability (at least £1,270 in savings unless certified by your sponsor).

Visa Fees : The cost of the visa varies depending on your job and its duration. For example, a visa for three years or less costs £719 if applying from outside the UK.

Processing Time : Expect a decision within 3 weeks for overseas applications or up to 8 weeks if applying within the UK​.

A Skilled Worker visa allows individuals to move to or remain in the UK for up to five years, provided they are employed in an eligible role with an approved employer. As long as the necessary conditions are met, the visa can be renewed indefinitely. After residing in the UK for five continuous years, you may apply for indefinite leave to remain (ILR), also known as settlement. To qualify, you must still be required for your job, meet the salary requirements, and satisfy the language and life in the UK criteria (KOLL requirement). Once granted ILR, you can live and work in the UK without a time limit.
 

As a long-term visa, the Skilled Worker route also allows dependants – spouse, partner, and children – to join you in the UK.*  They can apply at the same time as you or at a later date, with their visas typically matching the length of your stay. Dependants can also extend their visas and eventually apply for permanent settlement.
 

* Dependants of Health and Care Worker visa holders (e.g., SOC code 6135 – Carers) can not apply for a Skilled Worker Dependant visa unless the Skilled Worker was employed as a care worker or senior care worker in the UK and on a Health and Care Worker visa before 11 March 2024 and one of the following is true: 
 

• The worker is still on a Health and Care Worker visa;
   
• The worker is extending their Health and Care Worker visa with the same employer; 
   
• The worker is switching to a new role within the same occupation code while on their current visa​. 
   

Read our article on Skilled Worker Visa application process, document checklist, and timelines to learn more.

Fees Associated with Self-Sponsorship in the UK

When applying for self-sponsorship in the UK, there are several fees involved in both the Sponsor Licence application and the Skilled Worker visa process. Below is a breakdown of the key costs associated with each stage of the process:

Ongoing Compliance: Responsibilities for a Self-Sponsored Employee

Once you have successfully obtained both your Sponsor Licence and Skilled Worker visa, your responsibilities don’t end there. Both your business and you, as a sponsored worker, must comply with the UK Home Office regulations. Failing to meet these obligations could result in your Sponsor Licence being revoked and your visa being cancelled. 

 

1. Sponsor Licence Compliance 
 

As a Sponsor Licence holder, your business takes on several responsibilities to ensure that both you (as the self-sponsored employee) and any other sponsored employees adhere to UK immigration rules. These include:
 

• Monitoring Sponsored Employees : Your business must track the visa statuses of any sponsored employees, including yourself. This involves regularly monitoring your visa expiration date and ensuring that you (or other sponsored employees) are working in the role specified on the Certificate of Sponsorship (CoS). 
  
   
• Record-Keeping : You are required to maintain accurate and updated records for all sponsored employees, including yourself. These records must include: 
  
   
  • Copies of passports and visa documentation
     
  • Right to work checks
     
  • Employment contracts, salary details, and job descriptions
     
  • Evidence of qualifications and previous employment, where applicable
     
  • Details of any professional registrations, where relevant
    
     
• Reporting to the Home Office : You must notify the UK Home Office within 10 working days of any significant changes. These changes may include: 
  
   
  • A change in job role, salary, or work location
     
  • If the employee leaves the business or if there is any significant change in their employment status
     
  • Any changes to your business structure, such as a new owner, business relocation, or changes in the key personnel managing the Sponsor Licence
    
     
• Home Office Audits : The Home Office can conduct compliance checks at any time. During these audits, they will review your employee records, check your financial standing, and ensure that your business is fulfilling its sponsor duties. You must ensure that all required records are properly maintained and available for inspection.
   

More information on Sponsor Licence compliance – in our blog . 

 

2. Skilled Worker Visa Compliance 
 

As a Skilled Worker visa holder, you also have obligations to remain compliant with the UK’s immigration laws. Failure to comply could lead to the cancellation of your visa and may impact your ability to remain in the UK.
 

• Job Role : You must continue working in the job role specified in your CoS. If your job role changes or you take on a new role, you will need to apply for a new CoS or update your Sponsor Licence accordingly. 
  
   
• Salary Requirements : You must ensure that your salary continues to meet the minimum threshold specified in your visa conditions. This typically means your salary should be at least £38,700 per year or the "going rate" for your job, whichever is higher. Any reduction in salary below this level would breach your visa conditions. 
  
   
• Maintaining Valid Visa Status : It is your responsibility to ensure that your visa remains valid by renewing it before expiration and keeping your passport up to date. 
  
   
• Reporting Changes in Personal Circumstances : You must report any changes in your personal circumstances to the Home Office. These could include: 
   
  • A change of address or contact details
     
  • A change in marital status or dependents
     
  • If you apply for Indefinite Leave to Remain (ILR) or decide to switch to another visa route

Alternative Option: The Innovator Founder Visa

For those with innovative business ideas, the Innovator Founder visa can be an alternative to self-sponsorship. This visa is designed for entrepreneurs who want to establish a new, scalable business in the UK, but it comes with different requirements from the Skilled Worker visa.
 

• Endorsement Requirement : Unlike the Skilled Worker visa, the Innovator Founder visa requires endorsement from an authorised body. These endorsing bodies assess whether your business idea is innovative, viable, and scalable, meeting market needs or offering something unique.
   
• No Sponsor Licence Required : One key difference is that the Innovator Founder visa does not require a Sponsor Licence, as the visa is linked to your business endorsement rather than a traditional employer.
   
• Business Requirements : The business you plan to establish must be new and innovative, with the potential for growth and job creation in the UK. You must also demonstrate that your business can meet the needs of the UK market, contributing positively to the economy.
   

The Innovator Founder visa is initially granted for three years, with the possibility of extending it or applying for ILR if the business continues to grow and remains sustainable.

The decision between self-sponsorship and the Innovator Founder visa depends on your business goals and the type of company you intend to run. The Innovator Founder visa is ideal for entrepreneurs with groundbreaking ideas who are looking to disrupt the market, whereas the Skilled Worker route through self-sponsorship is more suitable for traditional business owners who prefer control over their employment and operations without needing external endorsement.

How Can Nation.better Assist You?

Securing a Sponsor Licence, obtaining a Skilled Worker visa, and maintaining compliance doesn’t have to be complicated. Nation.better streamlines these processes, ensuring you meet every Home Office requirement with ease.
 

We handle the details so you don’t have to and  provide expert support along they way.
 

Fill out this form , and our team will provide a tailored solution just for you and your business.