Hiring foreign workers > Sponsor Licence

Sponsor Licence Application: Requirements, Cost and Process (2026)

Get Home Office permission to hire skilled overseas workers.
Visa type

What is a Sponsor Licence?

The official Home Office permission allowing a UK employer to hire skilled workers from outside the UK is called a Sponsor Licence. Once your Sponsor Licence is granted, your business can issue Certificates of Sponsorship (CoS) to eligible overseas candidates, who then use them to apply for visas (e.g. the Skilled Worker visa). The Sponsor Licence replaced the old “Tier 2 Sponsor Licence” in 2020.
  • You must be a genuine UK business with a trading presence here to apply.
  • Your business will need a robust HR system and one key staff member accountable for immigration compliance.
Sponsor Licences last for 10 years and automatically renew as long as your business stays compliant with record-keeping duties and maintains its rating.
Check your eligibility
Eligibility criteria

Can my business get a Sponsor Licence?

To be eligible for a Sponsor Licence, your business must be a genuine UK trading entity with real vacancies at RQF level 3+ (A-Level or equivalent or above). You’ll have to prove capacity to pay the minimum salary, and keep proper HR/recruitment records.

You're likely eligible if:

  • Your business is a genuine UK trading entity registered with Companies House
  • You have a real vacancy(ies) at RQF Level 3 or above that can't be filled locally.
  • You can prove you have the finances to pay the going rate/minimum salary threshold for the role(s).
  • You have (or can set up) HR systems and named key personnel to manage sponsorship duties.

This route may not be right for you if:

  • You're a sole trader or self-employed (only registered businesses can apply).
  • You can't demonstrate a real vacancy or ongoing recruitment need.
  • You've had a recent unspent conviction for immigration or serious financial crime.
Requirements

What you’ll need to apply for a Sponsor Licence

Proof of legitimate UK business

You will need to prove you are an actively trading business in the UK. Typically a Certificate of Incorporation and a VAT registration certificate. Then you’ll want to evidence recent trading - we’d suggest sharing your latest audited annual accounts, recent corporate bank statement(s) and evidence of trading activity (invoices, contracts, etc).

Employer records

To show you already employ people in the UK, you should provide HMRC registration details (PAYE number, accounts office reference) and your Employer's liability insurance certificate. It’s also useful to show Proof of premises (like a lease agreement or property ownership documents).

Personnel information

The Home Office will want to know the size and shape of your current team. An Organisational Chart covering owners, directors, board and a full Employee list (if your company has 50 staff or fewer) will do the job here. You’ll also need to share an Email access roster, Landline contact number and details of who will be Authorising Officer, Key Contact, and Level 1 User of the Home Office’s Sponsorship Management System (SMS).

Business context

The Home Office will need to understand how your business runs and why employees from overseas are required. You’ll need to explain the business sector you are in, what your business offers and when and where you trade. This will help them understand the skills your employees need.

Role-specific info (per vacancy)

For each hire you are making, you need to  provide the job description (with correct SOC code), role description and duties, required skills, experience, and qualifications. You’ll also need to outline the offered salary (which must meet the minimum threshold). Finally, you’ll need to indicate the position on your Organisational Chart confirming it's a genuine vacancy.

Application Process

Application Process and Timeline.

Step 1: Preparation (2-3 weeks)

We will help make sure you meet all the eligibility criteria and have assembled a pack of documents and evidence to support your application.

Step 2: Online application (1-2 days)

We will guide you through using the Home Office Sponsorship Management System (SMS) to submit your application  and pay your application fee(s).

Step 3: Email supporting documents (same day)

You will need to send all your supporting documents to the Home Office within 5 days. We recommend doing this the same day as your application.

Step 4: Await decision (8 weeks / 10 days)

The Home Office usually takes 8 weeks to decide, but you can pay an additional £750 to guarantee a decision in 10 days.

Step 5: Compliance visit (if required)

The Home Office may choose to visit your business / workplace, or conduct a virtual check. We’ll help you prepare for it.

Receive your licence!

Once approved, your Company will join the Register of Licenced Sponsors. You can then legally recruit international workers with your new sponsor licence number.

Fees

Cost Breakdown

Here's a full breakdown of the professional fees and government costs involved in a Sponsor Licence application (current as of 2026). Our fees are in the 1st row - the rest all goes direct to the Home Office.
| COMPONENT | FEE | |---|---| | Professional Legal Fees with AYJ | Starting from £4,000 | | Sponsor Licence Application | Small business/charity: £574 - £611
Medium/large business: £1,579 - £1,682 | | Priority Service (optional) | £750 | | Certificate of Sponsorship (CoS) | £525 each, or £55 for temporary workers/students | | Immigration Skills Charge | Small business/charity: £480 per worker per year
Medium/large business: £1,320 per worker per year | | Premium Sponsor Service
Includes dedicated account manager and enhanced support | Small business: £8,000
Medium/large business: £25,000 |
Why AY&J

Why work with AY&J?

Learn More About us
We have proven success rates for helping businesses get their Sponsor Licence and can guide you through the entire process.
Successful Sponsor Licence applications
Years of UK immigration experience
Average rating from Trustpilot & Google
Testimonials

In our clients' own words.

Here's what UK employers have to say about their Sponsor Licence Application process with AY&J solicitors

“After our ILR rejection, AY&J pursued our case through Administrative Review and Judicial Review. The team was open, honest, knowledgeable and attentive to every detail. They kept us informed at every stage, supported us throughout an extremely difficult journey and helped us regain confidence in our case.”

Suman and Jimi
ILR refusal client

“I had just set up  a new company called Calibrant. I had a particular person that I wanted to hire and he was already in the UK but he needed a new sponsorship from an employer. AY&J Solicitors took me through two parts of the process. The first part was how to achieve a sponsor license. We were able to do that successfully within record time. The service was personal, personable, and very helpful. I wouldn't hesitate to recommend them and I'll use them again for the next time.

Simon Pollack
Director at Calibrant Ltd
FAQ

Frequently Asked Questions

You'll find some answers to commonly asked questions here but if you still have questions, don't hesitate to reach out to the AY&J team.
Check your eligibility

Application process

Will the Home Office visit my business before granting a Sponsor Licence?

It might. The Home Office can carry out a compliance visit before deciding your application, particularly for newer or smaller businesses, and may also visit after the licence is granted. Officers check that your HR systems work in practice and that your key personnel understand their duties. We prepare your team so they can answer with confidence.

Application process

What documents do I need for a Sponsor Licence application?

You'll need evidence that your business is genuine and trading lawfully in the UK, such as a business bank account, proof of premises and employer's liability insurance, plus details of your Authorising Officer, Key Contact and Level 1 User. These Appendix A documents must reach the Home Office within 5 working days of applying. We build and check the full bundle for you before anything is submitted.

Renewal and refusal

Do I need to renew my Sponsor Licence?

Not if your licence was granted from April 2024 onwards. These licences no longer need renewing every four years, so there's no renewal application or fee. You must still keep meeting your sponsor duties, including right-to-work checks, record keeping and reporting, for as long as you hold the licence.

Renewal and refusal

What happens if my Sponsor Licence application is refused?

Most refusals come down to missing documents, weak HR systems or a vacancy the Home Office doesn't accept as genuine. A refusal normally means waiting 6 months before you can reapply, so getting it right first time matters. If you've already been refused, we identify the root cause and address it directly in your new application.

Application process

How long does a Sponsor Licence application take?

A standard Home Office decision takes around 8 weeks from submission. Priority service (£750) aims for a decision within 10 working days, but places are limited each day. You can't assign a Certificate of Sponsorship until your licence is granted, so it pays to apply early.

Who can apply

Can I apply for a Sponsor Licence if I am not a British citizen and do not have settled status?

Yes. The company applies, not you personally. Your Authorising Officer, Key Contact and Level 1 User must be based in the UK most of the time, and are usually paid staff or office holders. None of these roles has to be held by a British citizen.

Who can apply

Can I sponsor a worker if my registered office is a home address or a virtual office?

A virtual office on its own is one of the most common refusal triggers, so you'll need evidence of a real operating address such as a lease, business rates or utility bills.

Who can apply

Can I get a Sponsor Licence if my company was only incorporated last year?

Yes, there's no minimum trading period, though younger companies attract closer scrutiny and a higher chance of a pre-licence compliance visit.

Who can apply

How much turnover does a business need before the Home Office will grant a Sponsor Licence?

There's no published minimum, but your business must show it can cover the salary and its sponsor duties, so turnover is judged against the number and cost of the roles you want to fill.

Who can apply

Can I apply for a Sponsor Licence if my company is not trading yet?

Yes, but a business that isn't trading yet has to work harder to prove it's real, so you'll need a UK business bank account, genuine premises, a credible plan and a vacancy you can evidence.

Contact

How can we help?

If you need a Sponsor Licence for your business and have any questions, get in touch and we’ll let you know how we can help.
Apply for Sponsor Licence
Office
Holborn Gate, 330 High Holborn, London, WC1V 7QT
Phone & WhatsApp
+44 20 7404 7933
Email
contact@ayjsolicitors.com