Disclaimer: The information in this blog is accurate as of its publication date. Any updates after that date are not reflected here.
If your international business has plans to send a senior member of staff to the UK to open a branch or subsidiary here, you may need to apply for a UK Expansion Worker sponsor licence. With a UK Expansion Worker sponsor licence, your overseas business can issue a Certificate of Sponsorships, allowing senior representatives to travel to and remain in the UK for up to 12 months to establish your new branch. It is important to bear in mind that if your UK branch is already operating, your representative should apply for a Senior or Specialist Worker visa instead. Before applying for a UK Expansion Worker sponsor licence, it is imperative that you understand the duties and obligations of a sponsor under this immigration route. In this guide, we will explain all you need to know about the responsibilities and requirements that you will need to meet as a UK Expansion Worker Sponsor Licence holder.
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What is a UK Expansion Worker sponsor licence?
A UK Expansion Worker sponsor licence is a type of sponsor licence issued under the ‘temporary worker’ immigration category by the Home Office. It enables overseas businesses not currently operating in the UK to sponsor senior members of staff to come to the UK to set up a new branch or subsidiary. There are several other types of sponsor licences in the UK, but you must hold a UK Expansion Worker sponsor licence specifically if you want to send a senior member of staff to set up your presence in the UK.
The Expansion Worker route replaced the Sole Representative of an Overseas Business route on 11th April 2022. If granted, your Expansion Worker sponsor licence will be valid for 4 years and cannot be further extended.
What are the eligibility requirements for a UK Expansion Worker sponsor licence?
To make a successful UK Expansion Worker sponsor licence application, your overseas business must:
- Have a ‘credible plan’ for expansion into the UK (see below for more details)
- Have plans for UK expansion in the same type of business that you conduct overseas – i.e. you must not intend to establish a completely new business venture by the company in the UK
- Plan to establish a branch or subsidiary that is either wholly owned by the overseas business or part of the same legal entity
- Be able to demonstrate that your business is actively trading outside the UK in the 12 months immediately before your application
- Not have an existing active trading presence in the UK but must have a UK ‘footprint’ (see below for more details)
- Be able to meet the duties and obligations of a licenced sponsor (see below for more details)
- Nominate Key Personnel to manage the Home Office’s Sponsorship Management System (SMS) on behalf of your business (see below)
- Meet the UK’s minimum wage and working time regulations
- Ensure that the visa requirements for your sponsored workers are met. You must pay your representative at least £48,500 per year or the ‘going rate’ for their job – whichever is higher. They must have worked for your business for at least 12 months unless they receive a salary of £73,900 or more.
In addition, you will need to meet the suitability requirements to apply for a UK Expansion Worker sponsor licence. This means that you must not have:
- Any unspent criminal convictions for immigration offences or other specific crimes, including fraud or money laundering, or
- Had a sponsor licence revoked in the last 12 months (of any type).
What is meant by a ‘credible’ plan for expansion?
You must be able to demonstrate to the Home Office that you genuinely intend and are able to establish a UK trading presence within two years. It is important to provide evidence that demonstrates your credible plan, taking into account financial projections, business size, previous activity, and the business’s potential. Our business immigration lawyers can help you to prepare a credible plan for expansion into the UK that will satisfy the requirements of the Home Office and help to ensure that your plans are a success.
What does it mean to have a UK ‘footprint’?
While your business must not be actively trading in the UK, you must have a UK ‘footprint’ before you can apply for a UK Expansion Worker sponsor licence. This can be demonstrated in different ways, for example, by providing a lease agreement or documents showing you have purchased premises in the UK. You can also prove this by providing evidence of registration with Companies House, either as an overseas company branch or a new company that is a subsidiary of the overseas linked business.
What are the Key Personnel requirements for a UK Expansion Worker sponsor licence?
You will need to nominate an Authorising Officer, a Key Contact and at least one Level 1 User who will manage your SMS when you apply for your licence.
Your Authorising Officer (AO) can be either a member of staff already in the UK and will be overseeing your expansion to the UK or a senior employee of the overseas business who will be assigned to the UK to oversee the expansion. It is important to ensure that they are the most senior person in your organisation who is responsible for the recruitment of overseas-sponsored workers and that your business is fulfilling its sponsor duties.
If your AO is based in the UK, you must also have a Level 1 User and a Key Contact based in the UK. The Level 1 User must also be a settled worker. Likewise, if your AO is an employee of your overseas business, they must also be your Level 1 User.
What are the duties and obligations of a UK Expansion Worker sponsor licence holder?
As a UK Expansion Worker sponsor licence holder, you must fulfil the following duties:
- Maintain accurate records (e.g. contact and visa details of your sponsored workers )
- Report certain changes to UK Visas and Immigration (UKVI)
- Check the immigration status of sponsored employees and ensure that sponsored workers have valid visas and are compliant with the terms of their
- Comply with immigration laws and
- Not engage in behaviour or actions that are not conducive to the public good.
These duties and obligations must be met through the time you hold your sponsor licence. Failure to do so may result in your licence being downgraded, revoked, or suspended. If this happens, you may be unable to sponsor more overseas workers and those you already sponsor may have their visas curtailed.
Before you apply for your sponsor licence, it is important to put in place systems that will enable you to meet these requirements. For advice on how to put in place the necessary sponsor management systems and processes for your business, please speak to a member of our immigration law team who can guide you through what you will need to do. We will also advise on how you can maintain your compliance with these duties and obligations over time.
How to apply for a UK Expansion Worker Sponsor licence
To apply for a UK Expansion Worker sponsor licence, you will need to:
- Complete the online sponsor licence application form
- Pay the required application fee
- Post the submission sheet provided at the end of the application
- Provide any supporting documents requested by the Home Office
Once submitted, you can expect to receive a decision from UK Visas and Immigration (UKVI) within 8 weeks. You may have the option to receive a decision within 10 days (for an additional £500).
CoS allocation for a UK Expansion Worker sponsor licence
If your UK Expansion Worker sponsor licence is granted and your nominated AO is based in the UK, you will be issued with an A-rating and your full Certificate of Sponsorship allocation of 5. If your AO is based outside the UK, you will have an initial CoS allocation of one and a provisional licence rating. As such, it is important to nominate an AO based in the UK as soon as possible.
Final words
A UK Expansion Worker sponsor licence will enable you to send members of your leadership team to the UK to set up a wholly-owned branch or subsidiary of your overseas business here. As we have shown in this guide, being a sponsor comes with a host of legal duties and obligations. For help with any aspect of overseas talent recruitment, please speak to one of our expert business immigration lawyers. They will guide you through the licence application process, apply on your behalf, and help you maintain compliance throughout your sponsorship journey.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with all types of visa applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us on +44 20 7404 7933 or contact us today. We’re here to help!
