Overview
A Sponsorship Licence is required for any UK business that wishes to hire non-UK nationals under work visa routes such as the Skilled Worker Visa or the Global Business Mobility routes.
Holding a licence allows an organisation to sponsor overseas workers by assigning Certificates of Sponsorship (CoS) to eligible employees.
The licence demonstrates that the employer is a genuine and compliant organisation capable of meeting the Home Office’s duties relating to immigration control, record-keeping, and reporting.
There are two main types of sponsorship licences:
Worker Licence – for skilled or long-term employment routes.
Temporary Worker Licence – for short-term or specific work schemes.
Licence Duration and Renewal
A Sponsorship Licence is valid for 4 years.
Employers must:
Renew the licence before it expires to continue sponsoring workers.
Maintain full compliance throughout the 4-year period.
Keep accurate records of sponsored workers and report any significant changes (e.g. job title, salary, or early termination).
Failure to meet Home Office compliance duties can result in the licence being suspended, downgraded, or revoked.
Eligibility Requirements
To qualify for a Sponsorship Licence, a business must:
Be a legally operating entity in the UK (e.g. registered with Companies House or an equivalent authority).
Have appropriate HR and recruitment systems to manage sponsorship duties effectively.
Be able to prove that offered job roles are genuine and meet the skill and salary thresholds for the relevant visa route.
Not have a history of immigration offences, fraud, or non-compliance.
Appoint key personnel to manage the licence via the Sponsorship Management System (SMS), including:
Authorising Officer – responsible for overall compliance.
Key Contact – main point of contact with the Home Office.
Level 1 and Level 2 Users – manage day-to-day sponsorship activities.
The Home Office may conduct pre- or post-licence compliance checks to ensure the organisation meets all requirements.
Documents Required
Businesses must provide evidence that they are genuine and established in the UK. Commonly required documents include:
Certificate of incorporation or Companies House registration.
Business bank statements.
VAT registration certificate.
Employer’s liability insurance (minimum £5 million).
Lease or ownership documents for business premises.
Audited accounts or financial statements.
HMRC registration documents (PAYE, NI, etc.).
The exact combination of documents depends on the business’s size, structure, and sector.
What You Can and Cannot Do
You can:
Sponsor eligible workers under approved visa categories (e.g. Skilled Worker, Senior or Specialist Worker).
Assign Certificates of Sponsorship (CoS) to qualified employees.
Apply to add new job roles or visa types to your licence.
Continue employing existing sponsored workers for the duration of their visas.
You cannot:
Sponsor workers for roles that do not meet skill or salary requirements.
Assign a CoS to individuals not genuinely employed by your business.
Transfer or sell your licence to another company.
Processing Times and Priority Service
Standard processing time: around 8 weeks from submission.
Priority processing (10-working-day service) is available for an additional fee, subject to limited availability.
Delays may occur if:
The Home Office requests additional information.
A pre-licence compliance visit is required.
Home Office Fees
Small or charitable sponsors: £536
Medium or large sponsors: £1,476
Priority processing (optional): £500
Additional costs may include:
Immigration Skills Charge (ISC): £364 – £1,000 per sponsored worker per year
Certificate of Sponsorship (CoS): £239 per certificate
Fees are accurate as of October 2025 and may change without notice.
Sponsorship Certificate
Contact Us
For inquiries about how we can help you, please reach out to us. We're here to help you understand the UK visa and tax process better.
Novadom Advisory is a trading name of Expat Limited, a company registered in England and Wales.
