A sponsor licence allows UK businesses to employ foreign workers. Licensed employers can issue Certificates of Sponsorship (CoS) to eligible non-UK nationals, whether based inside or outside the UK, enabling them to apply for a work visa such as the Skilled Worker visa. Educational institutions, including universities recruiting international students, also need a sponsor licence from the Home Office.
Since April 2024, sponsor licences no longer need renewing every four years — in most cases, they now remain valid indefinitely, provided the sponsor continues to meet its compliance obligations. The main exceptions are the UK Expansion Worker and Scale-up Worker licences, which remain limited to four years.
From 1 January 2025, a licence will be revoked if the sponsoring business recovers, or attempts to recover, sponsorship-related fees it is legally responsible for paying. This includes the sponsor licence fee and associated administrative costs, the Certificate of Sponsorship fee for Skilled Workers, and the Immigration Skills Charge for Skilled Worker or Senior/Specialist Worker sponsorship.
Applying for, and holding, a sponsor licence is a demanding process — maintaining one requires an ongoing, rigorous compliance regime, with HR processes and procedures that consistently meet Home Office standards. Migratia's business immigration team can advise employers through every stage of this process.
Eligibility Requirements
To be eligible to apply for a sponsor licence, a business must:
- Be genuine, operating, and trading lawfully in the UK
- Be based in the UK
- Not pose a threat to immigration control
- Have key personnel considered honest and dependable
- Have adequate HR systems in place to meet its ongoing duties as a licensed sponsor
Business Eligibility
Applicant businesses must be genuinely and lawfully operating in the UK — whether as a PLC, Ltd, LLP, or sole trader — with a real UK presence. This generally means being established and based in the UK, with a limited company or LLP incorporated at Companies House, and holding any necessary planning permission or Local Planning Authority consent for the business type at its trading address.
New start-ups are eligible to apply. However, businesses trading for less than 18 months must provide evidence of a current corporate bank account with a UK bank regulated by the FCA and PRA.
Additional eligibility criteria can apply depending on the licence category — for example, businesses applying for a UK Expansion Worker licence must not have an active UK trading presence, but do need to demonstrate a UK "footprint."
Suitability Requirements
Applicants must also demonstrate they are honest, dependable, and capable of fulfilling their duties as a sponsor. Specifically, the business must:
- Have suitable HR systems in place to meet sponsor duties
- Be ready for a UKVI compliance visit — announced or unannounced — at any time
- Have no unspent criminal convictions relating to immigration offences or tax evasion
- Have no history of non-compliance under a previous sponsor licence
- Not have had a sponsor licence revoked within the last year
Genuine Business Need
Applicants must also show a genuine need to hire overseas workers, satisfying the Home Office's "genuineness test." This means demonstrating a real intention to sponsor workers for eligible roles, and the ability to meet the relevant skill and salary requirements for each role. The Home Office will also check that the intended roles are consistent with the nature and size of the business. Crucially, this test must be met not just at application, but throughout the life of the licence.
Applicants must provide details of the roles they intend to fill through sponsorship, along with information on any candidates already under consideration, where relevant. While full recruitment details aren't strictly required, Migratia advises that including them can help strengthen an application.
Key Personnel
UKVI will require the names of all key personnel involved in managing the licence. These individuals must generally be British, have no unspent criminal convictions, be on the company payroll, and have no relation to any sponsored candidate. The main roles are:
- Authorising Officer — the senior individual ultimately responsible for the licence and ensuring sponsor duties are met
- Key Contact — the main point of contact with the Home Office
- Level 1 and Level 2 Users — those responsible for day-to-day management of the Sponsorship Management System (SMS)
Types of Sponsor Licence
There are two main licence categories, and businesses must specify which they need — and only recruit under that category — when applying. Multiple worker licence subcategories can be applied for depending on need and eligibility.
Worker licence. For employing skilled international workers on a short-term, long-term, or permanent basis. This covers several visa categories, including:
- Skilled Worker
- Scale-up Worker
- Senior or Specialist Worker (which replaced the Intra-Company Transfer visa)
- Minister of Religion
- International Sportsperson
Temporary Worker licence. For hiring international staff on a short-term or temporary basis, including volunteers. Migratia's separate guide on temporary work visas covers the specific visa types this licence can sponsor.
Not every role qualifies for sponsorship. Under the Skilled Worker route, for example, candidates must meet the UK's points-based system requirements, and sponsors must pay at least the minimum salary for the role — a figure that depends on the specific job, its going rate, and factors such as the candidate's qualifications, age, and whether they're a new entrant to the job market. Migratia recommends reviewing the requirements of the specific visa route before proceeding with sponsorship.
How to Apply
The general process for becoming a licensed sponsor involves:
- Deciding which licence categories to apply for
- Assessing eligibility and suitability for each category, and adjusting HR systems where needed
- Deciding who will act as Key Personnel (Authorising Officer, Key Contact, and SMS Level 1 and Level 2 users)
- Gathering the required supporting documents
- Deciding how many Certificates of Sponsorship to request for the first year
- Completing and submitting the online application, along with any required hard-copy documents
- Preparing for, and attending, a Home Office site visit, where applicable
- Awaiting the decision
Required Documents (Appendix A)
Appendix A sets out the full range of documents a sponsor licence applicant may be asked to provide. Most applicants need to submit at least four documents, though this may not apply to recognised public bodies, such as local authorities or companies listed on the London Stock Exchange Main Market.
Depending on the business and licence type, applicants may be asked for some or all of the following (this is a sample, not an exhaustive list):
- Evidence the business is genuine and active, such as recent annual accounts
- Copies of contracts for goods or services covering the 12 months before the application
- Evidence of a current corporate bank account with an FCA- and PRA-regulated bank
- A VAT registration certificate
- A franchise agreement
- Evidence of registration
- Endorsement from a relevant governing body
- For religious worker sponsorship: details of any parent organisation and the connection to it, a hierarchy chart where relevant, the size of the adult congregation, number of clergy employed, addresses of regular meeting places, and scheduled days and hours of worship
- Proof of connection to a qualifying overseas business through common ownership, control, or a joint venture agreement
- Evidence of a graduate training programme
- Proof of a UK "footprint"
- Evidence of an overseas trading presence
- Evidence of planned UK expansion
Additional supporting documents may also be requested, such as:
- An organisation hierarchy chart
- An employer's liability insurance certificate (covering at least £5 million, from an FCA-authorised insurer)
- Evidence of a listing on the London Stock Exchange AIM market, as an overseas company on the London Stock Exchange International Companies list, or on another FCA-approved international exchange
- A self-assessment tax return (SA300 or SA302)
- A Company Tax Return (CT620 or CT600)
- A premises licence to serve alcohol, issued by the relevant local authority or court
This list isn't exhaustive — Migratia's detailed guidance on sponsor licence supporting documents covers this further.
Fees
| Licence type | Small or charitable sponsor | Medium or large sponsor |
|---|---|---|
| Worker licence | £611 | £1,682 |
| Temporary Worker licence | £611 | £611 |
| Worker and Temporary Worker licence | £611 | £1,682 |
| Adding a Worker licence to an existing Temporary Worker licence | No cost | £1,071 |
| Adding a Temporary Worker licence to an existing Worker licence | No cost | No cost |
A business qualifies as small or charitable if it meets at least two of the following:
- Annual turnover of £15 million or less
- Total assets of £7.5 million or less
- 50 employees or fewer
Migratia's separate article on UK work visa sponsorship costs for employers covers the wider cost picture in more detail.
Sponsor Licence Number and CoS
A sponsor licence number is a unique reference included on each Certificate of Sponsorship (CoS), used by an overseas worker when applying for a work visa. A CoS is an electronic record containing key details of the job offer, including the role and duration of employment.
A nominated person within the sponsoring organisation applies for a CoS through the Sponsorship Management System (SMS). Once approved — typically within a day — the CoS can be issued to the worker, who uses it to support their visa application. CoS fees range from £55 to £525, depending on the licence type.
Defined CoS. Issued only to Skilled Worker applicants applying from outside the UK. Businesses must apply for, and be granted, a defined CoS before assigning it to a worker.
Undefined CoS. Issued for candidates switching to a Skilled Worker visa from within the UK, and for all other visa types regardless of where the application is made. Businesses estimate how many they'll need for the first year of sponsorship, and can then assign these without submitting a fresh application each time.
Compliance Duties
Sponsor licence compliance means continuing to meet Home Office duties throughout the life of the licence, from the date it's granted until it expires, is surrendered, or is revoked. In practice, this involves five core duties:
- Reporting duties — such as reporting worker-related changes within 10 working days, organisation-related changes within 20 working days, and any suspected breaches or criminal activity immediately
- Record-keeping duties — including retaining right-to-work checks, recruitment evidence, salary and payment records, and skill-level evidence
- Compliance with immigration law
- Compliance with wider UK law
- Avoiding behaviour not conducive to the public good
Failing to meet these duties can lead to Home Office compliance action, ranging from a downgraded rating to suspension while further checks are carried out, or full revocation of the licence. Migratia's detailed guidance on sponsor licence compliance and Appendix D record-keeping duties covers this in more depth.
Compliance Visits
A UKVI compliance officer may carry out a planned or unannounced visit at any point — either before a licence is granted (a pre-compliance visit) or after.
During a pre-compliance visit, UKVI checks that the necessary systems and processes are in place for record-keeping, reporting, and staff monitoring, and confirms the business is genuine and actively trading. Compliance officers can refuse an application outright if they're not satisfied these requirements are met.
Once a licence is granted, compliance officers periodically check that the business continues to meet its monitoring, reporting, and record-keeping duties. Where they're not satisfied, they have the power to downgrade, suspend, or revoke the licence.
How Long Is a Sponsor Licence Valid For?
A UK sponsor licence is now valid indefinitely, provided the sponsor continues to meet Home Office requirements. Since 6 April 2024, the previous four-year renewal requirement no longer applies, and existing licences that would have expired were automatically extended.
Even without a renewal requirement, Migratia recommends that sponsors regularly review their compliance procedures to ensure ongoing alignment with Home Office standards.
Change of Ownership or Merger
A sponsor licence cannot be transferred. Where a business undergoes a significant change in ownership or structure, the implications for the licence depend on the nature of the change and what happens to any sponsored workers.
Sponsors are generally required to report such changes to the Home Office through the SMS within 20 working days. The action needed depends on whether the licensed sponsor remains the same legal entity after the change — for instance, where ownership changes hands, the new owner will usually need to apply for its own sponsor licence if it wishes to continue employing sponsored workers. Migratia's dedicated article on sponsor licences after a change of ownership or merger explores this further.
Sponsor Licence Ratings
Sponsor licences carry either an A or B rating. New licences are granted an A-rating. Where the Home Office has concerns about a sponsor's compliance, it may downgrade the licence to a B-rating — at which point the sponsor cannot issue new Certificates of Sponsorship until it demonstrates the required improvements and regains its A-rating.
If a B-rated sponsor fails to resolve outstanding compliance issues, its licence may be revoked entirely, which can result in sponsored workers having their leave curtailed. Migratia strongly recommends seeking specialist advice promptly in this situation to help restore a licence wherever possible.
If Your Application Is Refused
There's no right of appeal against a refused sponsor licence application. Depending on the circumstances, however, a business may still have options, including:
- Submitting a new application (typically after a cooling-off period, depending on the reason for refusal)
- Requesting an Error Correction Request, where the refusal is believed to stem from a Home Office error
- Applying for a Judicial Review, where the decision is believed to be unlawful
It's important to understand whether an application was rejected as invalid or refused outright, as the consequences differ. An application may be deemed invalid — for example, due to missing or incorrect mandatory information — in which case it's rejected without full consideration, and a corrected application can usually be resubmitted straight away. A refusal, by contrast — for example, where the Home Office isn't satisfied the business has suitable HR systems, or doesn't meet the eligibility requirements — may come with a cooling-off period before reapplying, depending on the reason. Migratia's detailed article on what to do if a sponsor licence application is refused covers the options in more depth.