How to Get a UK Sponsor Licence: A Step-by-Step Guide for Employers

If your company wants to hire foreign talent in the United Kingdom, you’ll likely need a UK sponsor licence.

Without it, you cannot sponsor most skilled workers for a visa. With it, you can issue Certificates of Sponsorship that allow eligible candidates to apply for UK work visas.

Here’s what employers need to know, and how to prepare.

Planning to sponsor talent in the UK? Boundless can help you secure your sponsor licence and build a compliant hiring strategy from day one. Get started today.

What Is a UK Sponsor Licence?

A UK sponsor licence is formal authorization from the UK Home Office that allows your company to sponsor overseas workers under routes such as the Skilled Worker visa.

Once approved, your company can:

• Assign a Certificate of Sponsorship (CoS) to eligible candidates
• Enable workers to apply for a Skilled Worker visa
• Legally employ sponsored foreign nationals in the UK

You must have a sponsor licence before the worker can apply for their visa.

Who Needs a Sponsor Licence?

You’ll need one if:

• You want to hire a non-UK, non-Irish national who does not already have the right to work in the UK
• You’re expanding into the UK and plan to relocate employees
• You’re building a UK entity and want to sponsor new hires from abroad

If you’re setting up a UK presence for the first time, the sponsor licence is often one of the most time-sensitive steps in your expansion timeline.

Core Requirements

To qualify, your company must demonstrate the following:

1. Legitimate UK Presence

You must show that your business is genuine and operating lawfully in the UK. That typically means:

• A registered UK entity
• A UK trading or office address
• A UK corporate bank account
• Registration with HM Revenue & Customs (HMRC) as an employer (PAYE and National Insurance numbers)

If you are still in the process of establishing your UK operations, these foundations must be in place before you apply.

2. Trustworthy Key Personnel

You must appoint three required roles:

• Authorizing Officer (senior person responsible for compliance)
• Key Contact (main liaison with the Home Office)
• Level 1 User (manages the online sponsorship system)

At least one Level 1 User must be a British citizen or hold settled status in the UK (including Indefinite Leave to Remain), and must be an employee, director, or partner of the organization.

The Home Office conducts background checks on key personnel. Any history of immigration non-compliance, fraud, or criminal activity can result in refusal.

3. HR Systems and Compliance Capability

You must prove that your company can:

• Monitor sponsored workers
• Track attendance and work locations
• Maintain up-to-date contact details
• Report changes (such as job duties, salary adjustments, or early termination) to the Home Office
• Keep detailed right-to-work documentation

The Home Office may conduct a compliance visit before or after approval.

4. Genuine Job Roles

Office for National Statistics

The roles you plan to sponsor must be real jobs that:

• Meet RQF Level 6 (degree level), although some roles on the Immigration Salary List may qualify at lower skill levels.
• Align with an eligible Standard Occupational Classification (SOC) code
• Meet salary thresholds

As of 2024 reforms, most Skilled Worker roles must pay at least £41,700 or the “going rate” for the occupation, whichever is higher. Salary rules are complex and can vary depending on occupation, worker characteristics, and tradeable points.

Applying for a sponsor licen e requires both paperwork and operational readiness. Boundless helps employers assess eligibility, strengthen documentation, and prepare for Home Office scrutiny before submitting an application. Talk to our team today.

Required Documentation

You must submit supporting documents within five working days of your online application.

Business Documentation

• Organizational chart (include names and titles if under 50 employees)
• Detailed sponsorship letter explaining:
  • Why you are applying
  • Your business sector
  • Each role you intend to sponsor
  • SOC code and job duties
  • Salary
  • Required qualifications and experience
  • Whether the position is vacant or already filled
  • If filled, how the candidate was selected

Financial and Legal Documents

• UK corporate bank statement (or bank letter)
• VAT registration certificate (if applicable)
• HMRC employer registration confirmation
• Any required industry regulatory registration

Premises and Insurance

• Lease or proof of property ownership
• Employer’s liability insurance with at least £5 million coverage from an authorized insurer

Incomplete or inconsistent documentation is one of the most common reasons applications are refused.

Timeline and Costs

Application fees:

• £574 for small or charitable sponsors
• £1,579 for medium or large sponsors

Note: Fees are subject to change.

Processing time:

• 8 weeks standard
• 10 working days with priority service (additional £750, limited availability)

Per-worker costs after approval:

• £525 per Certificate of Sponsorship
• Immigration Skills Charge of £1,000 per year (reduced rate for small sponsors)

Important: Employers are prohibited from passing sponsor licence or Certificate of Sponsorship fees on to sponsored workers. Doing so can result in compliance action and potential licence revocation.

As of April 2024, sponsor licences no longer require periodic renewal. However, they remain valid only as long as the organization continues to meet compliance obligations. The Home Office can suspend or revoke a licence at any time.

Approval Rates and Risk

Sponsor licence refusals are not uncommon. If your application is rejected:

• You lose the application fee
• You may face a six-month cooling-off period before reapplying

The Home Office reviews applications carefully and can refuse them if documentation is weak, roles appear inflated, or compliance systems seem insufficient.

What Employers Should Do Now

If you’re planning to hire or relocate talent to the UK, preparation matters.

1. Build Your UK Foundation First

Before applying:

• Open your UK corporate bank account
• Secure office premises
• Register with HMRC as an employer
• Purchase employer’s liability insurance

Without these, your application is unlikely to succeed.

2. Audit Your HR Systems

Prepare documentation showing:

• How you track employee attendance
• Where employee data is stored
• Who is responsible for reporting changes
• Your right-to-work verification process

Create written compliance procedures if they do not already exist.

3. Validate Job Roles and Salaries

For each planned sponsored role:

• Confirm the correct SOC code
• Check the current “going rate” salary
• Draft detailed job descriptions aligned with actual duties
• Avoid inflating titles or misclassifying roles

Misalignment between job duties and salary thresholds can lead to refusal.

4. Assign the Right Internal Team

Choose key personnel carefully. The Authorizing Officer should be senior enough to understand immigration risk and company operations.

Make sure your Level 1 User understands the Sponsorship Management System and ongoing reporting obligations.

5. Build Realistic Timelines Into Hiring Plans

Because approval can take 8 weeks or longer, companies should:

• Start the licence process before recruiting overseas
• Avoid promising UK start dates until licence approval is secured
• Factor Immigration Skills Charge and visa fees into hiring budgets

Sponsor licensing is not an overnight solution.

If you’re expanding into the UK or preparing to sponsor your first employee, our team can guide you through sponsor licensing, compliance setup, and long-term workforce planning. Get started today.

The Bottom Line

A UK sponsor licence is both an opportunity and a compliance commitment.

For companies expanding into the UK, it’s often a necessary step to access global talent. But the Home Office expects detailed preparation, credible job roles, and strong internal systems.

The strongest applications are thorough, consistent, and in stepwith real business needs.

If you’re planning to hire in the UK, start preparing now, before you've identified the candidate you want to sponsor.

{{cta-component-horizontal-aligned}}

‍

‍