If your business aims to hire international talent through the Skilled Worker visa, understanding the sponsorship process is essential. Before you apply for a sponsor licence, it's crucial to familiarise yourself with the updated sponsorship licence rules, costs, compliance duties, and how to navigate the Sponsor Management System (SMS). This guide, updated for March 2025, covers the basics you need to know, including sponsor licence guidance, sponsor licence fees, and how to avoid being listed on the revoked sponsor licence list.
For a more detailed step-by-step guide on how to apply for sponsor licence UK – read our blog.
Why Do You Need a Sponsorship Licence?
To legally employ workers from outside the UK, your organisation must hold a valid Skilled Worker sponsor licence. Without a sponsorship licence, you cannot issue a Certificate of Sponsorship (CoS), which is required for every work visa UK application, including roles on the Immigration Salary List UK and jobs meeting the Skilled Worker salary threshold.
When issuing a Certificate of Sponsorship, you must understand CoS meaning, (un)defined Certificate of Sponsorship (DCOS) procedures, and know how to get a Certificate of Sponsorship in the UK – read a detailed guide in our blog.
Types of Sponsor Licence UK
There are two main types of sponsor licences available to sponsor talent:
- Worker licence
- Skilled Worker licence
- Intra-company Transfer licence
- International Sportsperson licence
- Minister of Religion licence
- Temporary Worker licence
How to Apply for a Sponsor Licence
The process to apply for a sponsor licence involves completing an online form via the Home Office website, submitting supporting documents, and paying the appropriate sponsor licence fees.
Before applying for a sponsor licence, you must appoint three key personnel, including:
- An Authorising Officer
- A Key Contact
- A Level 1 User
Previously, sponsors could nominate multiple Level 1 Users – allowing one to be a settled worker (for example, a legal representative) and another to fulfill the role of an employee, director, or partner. However, for all new sponsor licence applications submitted after 31 December 2024, at least one Level 1 User must simultaneously be an employee, director, or partner and be a settled worker (as defined in Part 2 of the guidance, meaning a British citizen, someone with an Indefinite Leave to Remain, or someone with settled status). More on the recent changes to the UK immigration sponsorship guidance – in our blog.
Required documents for sponsor licence appliaction typically include:
- Proof of trading status: such as a bank statement or VAT registration
- Insurance: employer’s liability insurance certificate
- Financial statements: latest unaudited / audited accounts
- HMRC registration: Proof of registration as a PAYE and National Insurance-paying employer
- Lease or ownership documents: for your business premises
For companies considering self-sponsorship visa UK options, the process requires you to apply for a sponsor licence and comply with sponsor licence guidance.
More details on sponsorship licence application – in our full guide.
Meeting Suitability and Eligibility Criteria
One of the first prerequisites to becoming a sponsor is that you should operate a business in the UK. Private individuals are not allowed to become sponsors unless they’re sole traders.
Criteria for eligibility:
- You must operate a genuine business with a lawful trading presence in the UK
- You must not have taken part in any activities that aren’t conducive to the public good
- You must prove that you can perform due diligence across your sponsor duties
Criteria for suitability:
- You must have HR systems in place to meet sponsor duties
- You must ensure that the Home Office can visit your business premises
- You must offer a genuine employment opportunity with an appropriate level of pay
- You must appoint key personnel to manage your sponsorship requirements
- You must not have previous records of sponsorship non-compliance
Home Office Fees 2025 for a Sponsorship Licence
Understanding how much it costs to sponsor a work visa in the UK is crucial for budgeting in international recruitment. The cost of applying for a sponsor licence depends on the size and type of your organisation:
- Small or charitable sponsors: £536
- Medium or large sponsors: £1,476
Processing times usually take up to 8 weeks, but you can use a priority service for an additional £500 to get a decision within 10 working days. If the Home Office requires further documents or a site visit, processing could take longer.
Compliance and Licence Revocation
Non-compliance with your sponsor duties may result in your sponsor licence being suspended or revoked after Home Office audits. These duties are split into three main categories:
- Reporting Duties
- Record-Keeping Duties
- Compliance with Immigration Laws
To protect your sponsorship licence, adhere strictly to the sponsor guidance and ensure your Sponsor Management System is regularly updated. Read the full guide on compliance management in our blog.
How Nation.better Can Help You
Applying for a sponsor licence is not as straightforward as it seems. It is a long and delicate process that needs careful planning to adhere to all the Home Office requirements.
By using Nation.better’s sponsor licence service , you can rely on our immigration experts to handle the entire process for you. Our mission is to make the experience stress-free while increasing your chances of obtaining Home Office approval.
If you feel that you are in need of assistance, fill in this form – our team will contact you with detailed information on how we can support your business in attracting top international talent.
FAQ Section
1. What is a UK Sponsor Licence and why do I need one?
A UK Sponsor Licence is mandatory if your business wants to legally employ workers from outside the UK through the Skilled Worker visa route. Without a valid sponsorship licence, you cannot issue a Certificate of Sponsorship (CoS), which is required for any work visa UK application. This applies to roles on the Immigration Salary List UK and jobs meeting the Skilled Worker salary threshold.
2. How do I apply for a Sponsor Licence in the UK?
To apply for a sponsorship licence UK, submit an online application through the Home Office portal, provide the required sponsor licence documents, and pay the relevant sponsor licence fees. You must also appoint key personnel, including an Authorising Officer, a Key Contact, and a Level 1 User, who must be a settled worker.
3. How much does a Sponsor Licence cost in 2025?
As of 2025, sponsorship licence fees depend on your business size: £536 for small businesses or charities; £1,476 for medium and large organisations. Optional priority processing is available for £500, providing a decision within 10 working days. Budgeting these work visa UK costs is essential for successful international recruitment.
4. What are the UK Sponsor Licence compliance duties?
To maintain your Skilled Worker sponsor licence, your business must follow strict compliance duties. These include keeping accurate records for sponsored workers, reporting important changes through the Sponsor Management System (SMS), and fully complying with UK immigration laws. Failure to meet these duties can result in your licence being suspended or your business being added to the revoked sponsor licence list, which is why following the latest sponsor guidance is so important.
5. What documents are required for a Sponsor Licence application?
When applying for a sponsorship licence UK, your business will need to provide specific documents to prove you are trading legally and meet the eligibility requirements. These typically include proof of trading status, evidence of employer’s liability insurance, recent financial statements, confirmation of HMRC registration as an employer, and documents showing ownership or lease of your business premises. Providing the correct sponsor licence documents is vital to avoid delays or refusals from the Home Office.