Hiring skilled workers from overseas is an important way for many UK businesses to fill skills shortages and get the best international talent to join their teams. However, to employ foreign workers legally, any UK company must apply for a sponsor licence from the Home Office. A sponsor licence is a legal permit granted by the Home Office to UK businesses. It allows them to hire foreign skilled workers through sponsorship. Specifically, through the licence, UK businesses can issue Certificates of Sponsorship (CoS) to eligible non-UK nationals. These certificates enable them to apply for a work visa like a Skilled Worker visa or a Temporary Worker visa. More importantly, UK Sponsor Licence guidance makes clear that applying for and maintaining the licence is not easy.
In this Sponsor Licence guidance for employers, we will provide absolute clarity for everyone who is applying for a Sponsor Licence to the Home Office. The article will explore the eligibility requirements, the application process, and the ongoing compliance to maintain your licence.
What is a Sponsor Licence?
To employ workers from overseas, every UK employer must possess a Sponsor Licence. This licence is a Home Office approval that lets a UK organisation sponsor and hire skilled overseas workers to work in the UK. Basically, a Sponsor Licence will allow the UK-based company to assign Certificates of Sponsorship (CoS) to overseas individuals they want to hire. In fact, those individuals can use the CoS documentation to apply for a UK visa. The licence lets migrant workers enter the UK and work legally. For example, employers sponsor engineers and IT specialists through the Skilled Worker visa or bring in senior team members via the Expansion Worker route.
A sponsor licence enables UK organisations to fill skill gaps and meet specific labour needs that cannot be satisfied by the local workforce. But first, you need to decide what kind of job you are hiring for. This depends on what type of recruitment the company will undergo, i.e., skilled, global mobility, or charity. Typically, sponsor licences fall under two categories: Worker Licence and Temporary Worker Licence. The employer can choose to apply for one or even both licences. It depends on their business recruitment needs.
Eligibility for a Sponsor Licence
According to the UK Sponsor Licence guidance, the Employers must meet specific eligibility requirements to obtain a sponsor licence to hire skilled foreign workers.
- Operating a business in the UK
- Must be a genuine and lawful business, operating and trading in the UK
- Have an appropriate HR and recruitment system. This system should be efficient and managed by senior ‘dependable’ members of the company
- Your company or any of its key personnel must have no history of non-compliance with UK immigration laws
- Show capability of fulfilling the sponsor duties in line with the Home Office guidelines, and have no history of failing these sponsorship duties
- Demonstrate a genuine vacancy that meets the requirements for a Skilled Worker visa or other related visa categories.
As a result, many corporate companies prefer to apply for sponsor licence guidance from solicitors to manage their Sponsor Licence eligibility.
The Application Process for a Sponsor Licence
The process to apply and obtain a sponsor licence is detailed and meticulous. Here are the 8 application process steps of the UK Sponsor Licence guidance.
Step 1: Prepare Your Organisation
Before beginning your application, ensure your business meets the Home Office eligibility criteria for a sponsor licence. First, your company must be a genuine and registered legal entity and, more importantly, should be able to demonstrate its ability to comply with sponsor duties. Additionally, the business needs to show that it is capable of offering a real job to an overseas resident.
Step 2: Choose the Type of Licence
Again, before the application, you need to decide on the type of licence that suits your company’s needs. You need to choose between a Worker Licence (including Skilled Worker) and a Temporary Worker Licence based on your business needs and the type of roles you want to fill.
Step 3: Appoint Key Personnel
You will need to assign key personnel for managing your UK sponsor licence. The 3 key roles are:
- Authorising Officer: A senior member of your company who is responsible for the recruitment of employees.
- Key Contact: The direct point of contact with the Home Office.
- Level 1 User: To oversee your online sponsor management system.
When assigning individuals to perform at these positions, it is important to ensure they have zero history of immigration-related or other criminal offences. For new companies, this step is a bit complicated to manage, which is why we recommend that you apply for sponsor licence guidance from A Y & J Solicitors.
Step 4: Apply Online
The application must be submitted online. Once done, you will need to email all the required supporting documents. Moreover, these details must prove that your business is genuine and capable of fulfilling sponsor licence duties. Check the required documents below.
Step 5: Provide Supporting Documents
The supporting documents prove your organisation’s existence and operation. Applicants for a sponsor licence must provide a minimum of 4 of the following documents:
- VAT registration certificate to show proof of trading status
- Employer liability insurance
- Financial statements from the recently audited annual accounts
- Proof of HMRC registration as a PAYE and National Insurance-paying employer
- Ownership or commercial lease documents for your business premises
- Details about the HR system and the key personnel and their duties.
It is important that the applicants should follow this UK Sponsor Licence guidance on all the mandatory required documents. Also, you must submit your documents within 5 working days of the application in the correct format (PDF, JPEG, PNG) because the Home Office accepts them in a specific format.
Step 6: Pay the Application Fee
At the end of the application procedure, pay the appropriate application fee. Moreover, this application cost depends on the size of the organisation, as set out in the table below.
| Licence | Small or charitable sponsor fee | Medium or large sponsor fee |
| Worker | £574 | £1,579 |
| Temporary Worker | £574 | £574 |
| Worker and Temporary Worker | £574 | £1,579 |
Step 7: Potential Home Office Compliance Visit
As a part of the sponsor licence application, the Home Office may decide to visit your organisation. This is a compliance visit to check the information provided in the application. Additionally, it assesses whether your organisation meets the requirements to obtain a sponsor licence. Be prepared for a Home Office compliance visit by maintaining proper documents.
Step 8: The Processing Time and Decision From the Home Office
Typically, the Home Office will review your application, may even inspect your business premises, and send their decision within eight weeks. Although the sponsor licence application usually takes up to 8 weeks, you can reduce the waiting time. In fact, by using the ‘pre-licence priority service’ for an additional £500, you can receive a decision within 10 working days. If your application is successful, you will obtain your sponsor licence rating (A or B). This licence will allow you to issue Certificates of Sponsorship to overseas workers. If the Home Office requests further documents or a compliance site visit, application processing could take longer.
Ongoing Compliance For a Sponsor Licence Holder
To ensure that licensed businesses are not misusing their sponsor licence, the UK Sponsor Licence guidance sets clear expectations. Therefore, businesses need to stay consistently compliant with the Home Office. To do this, they have to take responsibility for the following sponsor licence duties:
- Monitor and report relevant changes concerning employees and the organisation via the Sponsor Management System (SMS).
- Provide training for HR teams involved in the sponsorship process. Additionally, cover immigration rules and record-keeping responsibilities to ensure full compliance
- Keep comprehensive and accurate records of sponsored employees, such as job roles, employment contracts, salary details, copies of passports, and right-to-work check records
- Conduct regular internal audits of existing systems and practices to verify compliance with sponsorship duties and address any potential compliance issues
- Assign a key contact role to one of the staff members and maintain clear communication channels with UK Visas and Immigration (UKVI)
- Invest in Digital tools and software for tracking sponsored employees’ visa statuses, visa renewals, CoS allocations, monthly compliance checks and provide alerts for any compliance issues.
Do You Need Assistance with Your Sponsor Licence Application?
To conclude, this is the end of our Sponsor Licence guidance for employers 2025. Before you start your application, keep in mind that the UK government is committed to minimising abuse of the immigration system by unethical employers. Therefore, it is now more important than ever for UK businesses to get it right when applying for a sponsor licence. Our UK immigration lawyers at A Y & J Solicitors offer a comprehensive service for guiding Sponsor licence applications. We also provide continued legal support on maintaining ongoing compliance with the Home Office.
Our skilled team of business immigration solicitors will guide you through the sponsor licence application from start to end. Our firm has a 95% success rate in providing UK Sponsor Licence guidance and getting approvals from the Home Office. A Y & J Solicitors won’t just be your form-filler — we actively assist with the eligibility check and application process. Moreover, we ensure your business remains compliant with ever-changing immigration requirements, advise on understanding compliance duties, and help establish the necessary internal HR and recruitment infrastructure to comply with UK rules. So, book a call with our immigration specialists to get started on your Sponsor Licence process.
At A Y & J Solicitors, we have handled over 100s of successful Sponsor Licence applications. With a 95% success rate, we have achieved an overall track record of 5,000+ successful immigration and visa cases through our result-driven approach to every application. We take on each client with the genuine intention to provide our undivided care and attention to their case. We guide you through every step of your Sponsor Licence process, so you can trust the experts to manage your application and work toward your success.
Why A Y & J Solicitors?
With over thousands of successful immigration cases to our name, A Y & J Solicitors has built its reputation on trust, care, and real results. Over the 15+ years of working in UK immigration law, we’ve helped individuals and businesses confidently navigate sponsor licences, visas, and ILR applications. We’re proud to be recognised by The Legal 500, but it’s our clients’ peace of mind that matters most. When you work with us, you get clear advice, honest support, and a team that’s truly on your side.
