The UK job market is highly competitive, and many businesses are looking to hire international talent to meet their workforce needs. However, employing foreign nationals in the UK requires businesses to obtain a UK Sponsorship Licence. This licence ensures that employers comply with immigration laws and are authorized to sponsor skilled workers from outside the UK.
What Is a UK Sponsorship Licence?
A UK Sponsorship Licence is an official authorization granted by UK Visas and Immigration (UKVI), a division of the Home Office, allowing businesses to hire non-UK residents. Without this licence, companies cannot legally employ foreign workers under skilled work visa routes.
With a sponsorship licence, businesses can issue Certificates of Sponsorship (CoS), which are required for foreign employees to apply for visas under categories such as:
- Skilled Worker Visa
- Health and Care Worker Visa
- Global Business Mobility Visas
- International Agreement Visa
Why Do Businesses Need a Sponsorship Licence?
Since January 1, 2021, EEA and Swiss nationals are also required to be sponsored for employment in the UK, making the sponsorship licence an essential requirement for companies looking to hire talent from abroad. The Home Office uses this system to ensure legal compliance and that foreign employees receive fair treatment.
Employers must adhere to immigration rules, such as paying the required salary threshold and maintaining proper records. Failure to meet these requirements could result in fines or even revocation of the licence, impacting both the business and its sponsored employees.
Requirements for Obtaining a Sponsorship Licence
To apply for a sponsorship licence, businesses must meet the following criteria:
- Be a legally operating entity in the UK – This means being registered with Companies House or holding the appropriate permits.
- Have a HR system in place – Companies must demonstrate the ability to manage sponsorship responsibilities, including monitoring foreign employees.
- Prove the need for foreign talent – The Home Office will assess whether the job roles meet the criteria for hiring non-UK workers.
- Pass the genuineness test – Employers must justify the necessity of hiring a foreign worker instead of a local candidate.
- Demonstrate compliance with UK immigration laws – The company, its owners, and directors should have a clean record, free of immigration or fraud violations.
Sponsorship Management System (SMS)
Once a business obtains a sponsorship licence, it must manage its responsibilities through the Sponsorship Management System (SMS). This includes designating key personnel such as:
- Authorising Officer – Responsible for overall compliance.
- Key Contact – The main liaison between the business and the Home Office.
- Level 1 User – Manages day-to-day sponsorship duties, such as issuing CoS.
Employers must also keep accurate records, monitor employee absences, and report significant changes to the Home Office.
Types of Sponsorship Licences
There are two main categories of sponsorship licences:
- Worker Licence – For long-term employment of skilled workers, including intra-company transfers.
- Temporary Worker Licence – For short-term employment, such as seasonal work, charity work, or creative sector jobs.
Employers can apply for one or both types, depending on their business needs.
The Application Process
The application process involves submitting an online form and providing supporting documentation, such as:
- Proof of business registration (e.g., Companies House documents)
- Evidence of a UK business address and operations
- Details of HR processes to monitor sponsored employees
- Financial statements to prove the business’s ability to pay employees
The Home Office typically processes applications within 8 weeks, but businesses can pay for priority processing to get a decision within 10 working days.
Compliance and Responsibilities
Once granted a sponsorship licence, businesses must comply with regulations to avoid penalties. These include:
- Ensuring fair pay – Sponsored workers must receive at least the minimum salary threshold as per immigration rules.
- Reporting duties – Employers must report any significant changes (e.g., termination of a foreign worker, change of company address) to the Home Office.
- Record keeping – Businesses must maintain detailed records of all sponsored employees, including their visa status and employment history.
Need Assistance with Your Sponsorship Licence Application?
Navigating UK immigration laws and the sponsorship process can be complex. That’s why many businesses seek expert guidance from immigration specialists. If you want to learn how to get sponsorship license in UK, Imperial & Legal offers comprehensive support to ensure compliance and a smooth application process.
With the right legal guidance, your business can successfully sponsor skilled foreign workers and benefit from a diverse, talented workforce.
