Any UK business or organisation looking to employ foreign workers must apply for a sponsor licence first. Once they obtain a sponsor licence then only, they can employ overseas workers. A licenced sponsor must assign a CoS (certificate of sponsorship) to the workers they want to sponsor. Only after receiving a CoS foreign workers can apply for UK work visas. Foreign workers include citizens of the EU, Iceland, Liechtenstein, Norway, and Switzerland who arrived in the UK after 31 December 2020.
Education providers such as universities, colleges, and other educational institutes in the UK looking to sponsor international students under the student or child student route also need to apply for and obtain a sponsor licence.
The scope of this article is limited to sponsor licence applications for hiring foreign workers also known as Skilled Worker Licence
A sponsor licence application is the first step any business or organisation looking to employ overseas workers must take. If a sponsor licence applicant meets the eligibility criteria, the Home Office may issue them a sponsor licence.
For a sponsor licence application, you must prove to the Home Office that your organisation has HR systems in place to comply with the sponsor's duties. You must also prove that there are genuine vacancies in your organisation and the workers you want to sponsor meet the necessary eligibility requirements.
UK businesses and organisations make their sponsor licence application to the Home Office to prove their eligibility and demonstrate they meet the immigration compliance requirements. If you obtain a sponsor licence you will usually not be required to renew your licence.
Your business must meet the following eligibility criteria to apply for a sponsor licence application:
Your business must be legally trading or operating in the UK. This includes your business being registered with the appropriate regulatory bodies. It should also have the necessary permissions to conduct business in your sector.
Your company and its key personnel must not have unspent criminal convictions for immigration offenses such as breach of UK immigration law or other serious crimes, such as fraud or money laundering.
Your business must have the appropriate HR systems in place. These HR systems are required to monitor the immigration status of your employees, register and retain accurate records, and report any issues within the required time to the Home Office.
Apart from the eligibility requirements mentioned above your business must also meet the suitability requirements for a sponsor licence application. This includes demonstrating that there is a genuine vacancy in your organisation that cannot be filled by the local labour market. You must also meet the salary and skill threshold for the job.
You need to get your business ready for the application, gather the necessary documents, apply online, pay the application fee, submit the application, submit the documents, and then wait for a decision from the Home Office.
Here are the steps you need to follow to apply for a sponsor licence.
Before you begin the sponsor licence application process, you must ensure that your business meets the eligibility requirements set by the Home Office. This includes ensuring your business is legally operating in the UK, having the necessary HR systems in your organisation, and appointing key personnel (an authorising officer, a key contact and at least one Level 1 user) to manage the SMS (Sponsorship Management System) and compliance with the sponsorship duties.
Ensure your business is capable of managing the sponsorship duties and job roles you intend to sponsor.
Collect all necessary documents for a sponsor licence application that prove your business is legitimate, financially stable, and able to comply with sponsorship duties and obligations.
While you are required to submit at least four documents, you can submit more documents particularly if potentially the Home Office may have concerns about any of those intended to be submitted. These documents include but are not limited to your company’s Certificate of Incorporation, proof of business premises, business financial statements, and evidence of HR systems.
You will need to submit the sponsor licence application online through the UK Home Office's official website gov.uk. To access the sponsor licence application form you will need to create an account on the SMS (Sponsorship Management System). For this, you will need to provide your organisation details, the job vacancies you intend to sponsor, and the key personnel who will be responsible for managing the licence.
Importantly, the SMS is an old system, and therefore you are advised to save your work regularly to avoid losing any of your information.
The sponsor licence application form will require the following:
Ensure all documents you are submitting are up-to-date and in the correct format. This includes ensuring that proper checks for any required professional accreditations, insurance certificates, and DBS for key personnel are in place. While you can complete the form with the guidance of a legal representative, as per the rules only a relevant person (authorising officer) from your organisation must ’press the button’ and submit the application to the Home Office.
Depending on the size of your business (small, medium, or large), you will need to pay the appropriate application fee which is £574 for smaller businesses is £574, and £1,579 for larger employers. Once you have paid the fee, a submission sheet will be generated.
The online sponsor licence application form should only be submitted by the Authorising Officer. Authorising officers should submit the application only after they are satisfied that the business has all of the necessary systems in place to comply with its sponsor duties and that they have all of the supporting documents in order and ready to be submitted.
You should retain a copy of the completed and submitted an online sponsor licence application for the UK organisation’s sponsor records.
You should submit the supporting documents in PDF format within five days of submitting the sponsor licence application on the SMS. You will submit the documents to SponsorshipValidations@homeoffice.gov.uk
You will get a confirmation notice (keep this for your records) from the Home Office after you have submitted your application and documents.
You should usually get a decision from the Home Office within 8 to 12 weeks of submission of your application and documents. During this period the Home Office may conduct further checks or request additional information. If you opt for priority then you can receive a decision earlier than that normal processing timings, however the priority costs you an additional £500.
The Home Office may take longer if there is a pre-licence compliance visit, unavailability of authorising officer, and other factors.
You will be notified by the Home Office of their decision after it has reviewed your sponsor licence application. If your application is successful, the Home Office will grant a sponsor licence. Your business will also be added to the Register of Licenced Sponsors.
You will receive 2 emails, first with a decision letter with will contain your user id for sponsor management system and second email with the password.
In some cases, the Home Office can conduct a compliance visit to an applicant's business premises or a digital audit before deciding on their sponsor licence application to verify the information the applicant has provided in their application. The objective of this visit or digital audit is to assess the applicant's ability to manage sponsored workers and comply with the sponsor’s duties and obligations.
We are an expert immigration service provider to businesses in the UK. We are also a sponsor licence application service provider. Applying for and obtaining a sponsor licence is a crucial step for any UK business looking to sponsor international workers. And we make the job easier for you by helping you understand the requirements for it, prepare thoroughly, and maintain compliance. We ensure a smooth sponsor licence application process for your business so that you can focus on securing the skilled workers in your business.
We have helped several businesses obtain their sponsor licence and stay compliant with constant government changes. You can reach out to our team at +44 (0) 20 3411 1261 to learn more.
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