A Sponsorship Licence (also known as a Sponsor Licence or a UK Sponsor Licence) (was formerly known as Tier 2 Sponsor Licence) is official permission granted by the UK Home Office to employers who want to hire skilled workers from outside the UK, including from the EU. With this licence, a business becomes an approved sponsor and can issue Certificates of Sponsorship (CoS) to eligible foreign workers. These workers can then apply for a Skilled Worker Visa or other work routes.
It's essential for any UK business looking to access global talent legally and compliantly.
There are two principal categories of UK sponsor licence, each permitting different types of migrant employment
To hire anyone who doesn't already have settled status or a valid right to work in the UK, your organisation must apply for a sponsor licence. This rule applies to all employers, big or small, no matter how many overseas staff you bring on.
Multinational companies hiring skilled global talent
Small and medium businesses seeking niche expertise
Universities and colleges sponsoring academic staff and researchers
NGOS employing specialists from abroad
Your choice of sponsor licence hinges on the nature of the role you're offering and your organisation's ability to satisfy the route's criteria. For instance, if you wish to hire under the Skilled Worker route, you must hold a Skilled Worker sponsor licence. That means you need to provide genuine employment that meets the route's prescribed skill level and minimum salary thresholds. Once you assign a valid Certificate of Sponsorship, the candidate becomes eligible to apply for a Skilled Worker visa. This route serves as the main avenue for UK employers to recruit skilled talent from overseas.
Many sectors rely on recruiting skilled professionals from overseas, so obtaining a sponsor licence is essential to power their recruitment programmes.
Companies hiring software developers and IT professionals
Demand for foreign toctors, nurses, and medical staff
Institutions attracting global financial talent
Hotels and restaurants hiring skilled staff
Institutions attracting global financial talent
Universities employing international academics
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To apply for a UK sponsor licence in 2025, organisations must demonstrate they meet the Home Office's eligibility criteria and maintain robust compliance systems.
Your organisation must be a genuine UK trading entity, backed by Companies House registration and evidence of commercial activity (for example, invoices, contracts or bank statements). An important exception applies to the UK Expansion Worker (GBM) route: sponsors under that scheme must not already maintain an active trading presence in the UK.
The role must be a real vacancy at RQF level 3 or above (or the relevant threshold for other licences) that cannot be filled from the resident labour market.
You must pay the sponsored worker at least the published "going rate" or general salary threshold and show capacity to meet payroll (e.g. payslips, audited accounts).
Maintain clear records of recruitment efforts and job adverts to demonstrate that suitable settled workers were considered before sponsoring.
Use the Home Office's Sponsorship Management System (SMS) and appoint an Authorising Officer, Key Contact and Level 1 Users to manage Certificates of Sponsorship and compliance.
Maintain comprehensive records of sponsored workers for at least six years and notify the Home Office of any key changes-start dates, absences, salary adjustments or terminations-within the required deadlines to remain audit‑ready. Sponsors must also have no unspent convictions for immigration offences or serious crimes such as fraud or money laundering.
Here's a concise, at‑a‑glance overview of Section D in a visual table:
Our sponsor licence solicitors can guide you through every part of the sponsorship licence requirements UK
Check that your business meets all UK sponsor licence rules. You need valid registration in the UK, HR systems to track sponsored workers, and key staff assigned to manage the process.
Collect proof of your company’s legitimacy and finances. Typical items include your Certificate of Incorporation, audited accounts, employer’s liability insurance, VAT registration, bank statements, HMRC evidence and premises proof.
Log into the Home Office Sponsorship Management System. Choose the right licence type, fill in your company details, name your Authorising Officer, Key Contact and Level 1 User, and list the documents you’ll submit
In the SMS you’ll see the fee for small sponsors ( £574 ) or large sponsors ( £1,579 ). Make your payment there to move forward with your Sponsorship licence application.
Only your Authorising Officer can click submit. Download the submission sheet it generates and keep it safe with your other UK sponsor licence records.
Send all your PDFs to the Home Office within five days of submission. Preparing your pack in advance helps you meet this deadline without last-minute rush.
Decisions usually take up to eight weeks, and you’ll receive a confirmation notice to keep on file. For an additional £500, the Sponsor Licence Priority Service guarantees a decision within ten working days.
The Home Office may come on site or carry out a virtual check. They’ll review your systems and paperwork to make sure you can manage sponsored workers properly.
Once approved, you’ll join the Register of Licensed Sponsors. You can then legally employ international staff under your new licence.
Enjoy a hassle-free process and avoid delays. Focus on growing your business.
Here are the timings and requirements for a UK sponsor licence application and related visa steps.
| Stage / Factor | Standard Timeline | Expedited Option & Notes |
| Licence application processing | Up to 8 weeks (gov.uk) | - |
| Pre-licence priority service | Decision within 10 working days (gov.uk) | £500 fee; limited daily slots |
| Pre-licence compliance visit | UKVI may visit your premises (no set timeframe) (gov.uk) | Visits are more common for higher-risk sectors; timeline varies by case |
| Supporting documents submission | Priority: within 5 working days of fee payment (gov.uk) Standard: send promptly after application | Late or missing documents risk outright rejection |
| Skilled Worker visa (overseas) | Decision within 3 weeks (gov.uk) | Priority service: 5 working days Super priority: next working day (gov.uk,) |
| Skilled Worker visa (in-country) | Decision within 8 weeks (gov.uk) | Priority service: 5 working days Super priority: next working day (gov.uk) |
| Fee Type | Eligibility / Description | Fee (from 9 April 2025) |
| Small sponsor licence application | Charitable status or small companies regime (meets at least two of: turnover ≤ £10.2 m; balance sheet ≤ £5.1 m; ≤ 50 employees) | £574 |
| Large sponsor licence application | Organisations that do not meet the small companies criteria | £1,579 |
| Premium Sponsor Service (12 months)- Worker & Temporary Worker (large sponsors) | Fast‐track licence processing | £25,000 |
| Premium Sponsor Service (12 months)- Worker & Temporary Worker (small sponsors) | Fast‐track licence processing | £8,000 |
| Premium Sponsor Service (12 months)- Student sponsors | Fast‐track licence processing | £8,000 |
| Expedited sponsorship management request | For Worker or Temporary Worker sponsors | £200 |
| Priority service for sponsor licence applications | Decision within ten working days | £500 |
| Student sponsor licence | £574 | |
| Temporary Worker sponsor licence | £574 | |
| Worker & Temporary Worker sponsor licence- large sponsor | £1,579 | |
| Worker & Student sponsor licence- large sponsor | £1,579 | |
| Worker, Temporary Worker & Student sponsor licence- large sponsor | £1,579 | |
| Temporary Worker & Student sponsor licence | £574 | |
| Worker sponsor licence- large sponsor (already holds Temporary Worker/Student licence) | Reduced rate where you already hold a Temporary Worker or Student sponsor licence | £1,005 |
| Student sponsor basic compliance assessment | Optional compliance check prior to licence grant | £574 |
| Sponsor action plan | Plan outlining steps to remedy compliance issues | £1,579 |
| Immigration Skills Charge (Skilled Worker) | Per worker, per year; standard £1,000 / reduced £364 for small sponsors & charities | £1,000 / £364 |
| Certificate of Sponsorship (Skilled Worker, T2 Minister of Religion, GBL Senior/Specialist) | Assigning a CoS under the Skilled Worker, Minister of Religion, or Global Business Mobility senior/specialist routes | £525 |
| Certificate of Sponsorship (Temporary Worker & similar routes) | Assigning a CoS for Temporary Worker, Graduate Trainee, UK Expansion Worker, Service Supplier, Secondment Worker, and Scale-up routes | £55 |
| Certificate of Sponsorship (International Sportsperson - over 12 months) | Assigning a CoS for International Sportsperson roles longer than 12 months | £525 |
| Certificate of Sponsorship (International Sportsperson - up to 12 months) | Assigning a CoS for International Sportsperson roles of 12 months or less | £55 |
| Confirmation of Acceptance for Studies (CAS) | Issue of CAS for Student and Child Student routes | £55 |
When a UK business is granted a Sponsor Licence, the Home Office assigns a rating that shows how well it meets its duties under UK immigration law. There are two main ratings:
| Aspect | A-Rating | B-Rating |
| Ability to Sponsor New Workers | Yes | No |
| Monitoring by Home Office | Standard checks | Increased scrutiny and an Action Plan |
| Action Plan Required | No | Yes |
| Consequences of Non-Compliance | Warning or downgrade | Possible suspension or revocation |
| Licence Privileges | Full sponsorship rights | Limited until improvements are made |
An A-Rating shows your business meets all Home Office requirements. You can assign Certificates of Sponsorship, manage your sponsored workers and face only standard compliance checks.
Keep accurate records, report changes quickly and maintain strong HR systems to stay on top of your duties.
A B-Rating means the Home Office has concerns about your compliance. You must follow an Action Plan and fix issues before you can sponsor new workers.
Complete the plan on time to regain an A-Rating. Missing deadlines could lead to suspension or loss of your licence.
When you submit your sponsor licence application, you agree to follow a set of duties designed to prevent illegal working. These rules ensure you keep accurate, up-to-date records that the Home Office can review at any time. Meeting these obligations is a core part of any successful sponsorship licence application.
Maintain complete files for each sponsored worker. This includes right-to-work checks, passport and immigration status documents, NI (National Insurance) number, employment contracts and contact details. Keep past and current records so you can demonstrate compliance at any inspection.
Applying for a UK Sponsor Licence can be complex without a robust HRMS. However, we make it simple. You can maximise compliance and efficiency with our cutting-edge HRMS. You get yours absolutely free when you hire us for your sponsor licence application. Now, let us take a look at what our powerful HRMS offers:
In Appendix Skilled Worker, find the re- levant SOC code for your job role.
Search by job title to identify potential SOC codes.
Compare the code with Home Office Appendix to confirm Check that the accuracy.
Check that the role is at the required minimum level.
Use the ONS coding tool for unsure matches
Avoid copying example job tasks verbatim
You must assign a Certificate of Sponsorship (CoS) to every foreign worker you employ. It's an electronic record, not a paper document, and each CoS has its own reference number that the worker uses when they apply for their visa. Once you assign a CoS, the worker must use it to apply for their visa within three months and no more than three months before the job's start date (gov.uk).
Failing to fully complete all fields or submitting mismatched information causes immediate refusals.
Omitting key proofs (e.g., business registration, financial records) leads to delays or outright rejections.
Sponsoring roles below RQF level 3 or paying below the published "going rate" breaches Home Office requirements.
Not keeping clear records of job adverts and candidate assessments undermines claims of a genuine vacancy.
Missing deadlines for additional information requests can result in your application being withdrawn.
Lacking up-to-date HR policies, SMS logs and document retention exposes you to compliance visit failures.
A UK sponsor licence (formerly known as Tier 2 licence) is an authorisation issued by the Home Office that lets a UK business recruit and sponsor overseas workers under routes such as the Skilled Worker and Global Business Mobility categories. With a sponsor licence, you can assign a Certificate of Sponsorship (CoS) to skilled migrants so they can apply for their visa.
A Y & J solicitors specialises in guiding organisations through the sponsor licence process, from application to ongoing compliance.
At A Y & J Solicitors, we specialise in UK immigration law and have guided over 5,000 business owners and professionals worldwide through the British system. We pride ourselves on fast, clear communication, responding to all queries within 24 working hours. Our close working relationship with the Home Office means we can spot and resolve potential issues before they affect your sponsor licence application or compliance. From skilled worker visas under the points-based system to Indefinite Leave to Remain, spouse visas, nationality applications and more, we manage every aspect of UK immigration. We also take on complex appeals, administrative and judicial reviews, and cases involving EU law and human rights.
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