Understand More About The Sponsor License Process
The Home Office has released updated guidance for sponsor license applications, aligning with amendments to UK immigration rules in December 2020. The Tier 2 (General) visa route has been replaced by the Skilled Worker visa route. Since January 1, 2021, companies must have a valid sponsor license to employ skilled workers from the EEA and Switzerland who haven’t obtained pre-settled or settled status under the EU Settlement Scheme.
What is a Sponsor License?
A sponsor license allows UK-based companies to hire skilled workers from overseas or within the UK. Applicants can transition into the Skilled Worker visa from other visa categories, including Tier 4 Student and Youth Mobility Scheme visas. The license is valid for four years and can be renewed.
Eligibility Criteria for a Sponsor License
To qualify for a sponsor license, an organization must:
- Have a presence in the UK and conduct lawful operations or trade.
- Provide evidence of compliance with any required statutory body registrations or planning permissions.
- Ensure genuine employment opportunities in skilled occupations with prescribed salary rates.
- Typically, only organizations can be sponsors, but sole traders may qualify in some cases.
Cost of a Sponsor License Application
The sponsor license fee varies by organization size:
- Medium and Large Organizations: £1,476
- Small Sponsors and Registered Charities: £536
Sponsor License Ratings
Sponsor licenses are assigned two ratings:
- A-rating: Indicates compliance with sponsor duties.
- B-rating: Requires fulfillment of a time-bound action plan to regain A-rating status. Failure to meet the action plan can lead to license revocation.
Application Procedure and Requirements
To apply for a sponsor license, companies must:
- Submit an online form.
- Provide a minimum of four supporting documents validating their UK trading presence.
- Include a cover letter with organizational background information.
The Home Office may request additional documents and conduct compliance visits, which can be done online if necessary.
Document Requirements
Applicants typically need to submit:
- Latest business bank statement
- Employer’s liability insurance of at least £5 million
- Certificate of VAT registration
- Proof of employer registration with HMRC
- Proof of business premises ownership or lease
- Latest audited or unaudited accounts
- Evidence of regulatory registration if required
Types of Sponsor Licenses
Primary ‘Worker’ license categories:
- Skilled Worker (formerly Tier 2 General)
- Senior or Specialist Worker Visa – Global Business Mobility (GBM) (formerly Tier 2 Intra-company Transfer)
- Sportsperson
- Ministers of Religion
Certificates of Sponsorship (CoS)
- Defined CoS: For individuals outside the UK applying for entry clearance as Skilled Workers.
- Undefined CoS: For those already in the UK or requiring a visa switch. Sponsors can request additional CoS as needed.
Immigration Skills Charge
An additional charge applies when assigning a CoS:
- Small Sponsors: £364 per 12 months
- Large Sponsors: £1,000 per 12 months
- Exemptions apply for certain professions and circumstances.
Application Refusal and Cooling-Off Period
If an application is refused, a six-month cooling-off period typically applies, preventing reapplication until the period ends. Errors in the Home Office’s assessment can be challenged through pre-licence error correction or judicial review.
Compliance and Responsibilities
Sponsors must ensure compliance with immigration rules and UK law, maintain appropriate HR systems, and monitor migrant workers. Non-compliance can lead to license suspension or revocation.
Steps to Obtain a Sponsor License
- Confirm business eligibility.
- Select the required license type.
- Determine key personnel roles (Authorising Officer, Key Contact, Level 1 User).
- Apply online and pay the fee.
Validity and Renewal
A sponsor license is valid for four years and can be renewed. The standard processing time for applications is eight weeks, with a priority service available for expedited processing.
Key Responsibilities of a Sponsor
Sponsors must:
- Monitor and report changes in migrant employment.
- Ensure compliance with sponsorship duties.
Failure to comply can result in penalties, including license suspension or revocation.
Disclaimer
The information above is not legal advice, and any reference to legal solutions or information regarding UK Immigration is sourced from Gov.uk (the official UK immigration website). ImmigrationHUB.co.uk does not provide legal advice or counsel. Any legal matters are dealt with directly by our partnered firms, which are registered by the governing societies in their area of operations.
