If you are a UK employer who wants to hire skilled workers from outside the UK, a Sponsor Licence is not optional — it is the gateway. Without one, you cannot legally sponsor overseas nationals, assign Certificates of Sponsorship, or participate in most of the UK’s sponsored work visa routes.
This guide provides a practical overview of obtaining a Sponsor Licence, maintaining compliance, and protecting your licence if UKVI raises concerns. For tailored advice, see our dedicated UK Sponsor Licence service.
What Is a Sponsor Licence?
A Sponsor Licence is a formal authorisation granted by UK Visas and Immigration (UKVI) — part of the Home Office — that permits a UK organisation to sponsor workers from outside the UK under the Points-Based Immigration System.
The licence is route-specific. There are separate licences for:
- Worker routes (covering Skilled Worker, Senior or Specialist Worker, Graduate Trainee, etc.)
- Temporary Worker routes (covering Creative Worker, Charity Worker, Seasonal Worker, etc.)
Most employers seeking to hire skilled international staff will need a Worker Licence.
Who Can Apply?
Any UK-based organisation that is genuinely operating can apply, including:
- Limited companies
- Partnerships
- Sole traders
- Charities and non-profit organisations
- NHS trusts and other public sector bodies
- Schools, universities, and educational institutions
Who cannot apply:
- Organisations that have had a licence revoked in the past year (with some exceptions)
- Organisations where key personnel have unspent criminal convictions for immigration offences or certain other serious crimes
- Organisations that UKVI deems are not genuinely operating or have set up primarily for visa purposes
The Application Process
If you would like a solicitor to handle this for you, see our sponsor licence application service.
Step 1: Assess Eligibility
Before applying, confirm that:
- Your business is genuine and actively operating
- You have a genuine need for the role(s) you want to sponsor
- Your HR systems are capable of meeting UKVI’s ongoing compliance duties
- Your proposed Key Personnel (Authorising Officer, Key Contact, Level 1 Users) will pass UKVI’s checks
Step 2: Prepare Documentation
UKVI requires documentary evidence of your organisation. The exact list depends on your organisation type and whether you have been trading for over 18 months, but typically includes:
- Latest accounts or bank statements
- VAT registration certificate (if VAT-registered)
- Employer’s liability insurance certificate
- HMRC registration documents
- Evidence of premises (lease, title deeds, utility bills)
- For regulated professions: evidence of registration with the relevant regulatory body
Step 3: Submit the Application
The application is made online via the Sponsor Management System (SMS). The fee is paid at this stage: The fee depends on the licence category and whether the sponsor qualifies as small or charitable. Consult the current Home Office licence fee table before budgeting. Sponsorship costs also include certificates and, where applicable, the Immigration Skills Charge. Employers must not recover prohibited sponsorship costs from workers.
Step 4: UKVI Assessment
UKVI may:
- Grant the licence without further contact (A-rating granted immediately)
- Conduct a compliance visit before making a decision
- Request additional information
Step 5: Decision
If granted, you will receive an A-rated licence — the full rating allowing you to assign unlimited CoS (subject to your allocation) and sponsor workers immediately.
Key Personnel Roles
Every licensed sponsor must appoint individuals to specific roles:
| Role | Responsibility |
|---|---|
| Authorising Officer (AO) | Senior person responsible for the licence; accountable to UKVI |
| Key Contact (KC) | Primary point of contact for UKVI; can be the same as AO |
| Level 1 User | Day-to-day management of the SMS; assigning CoS |
| Level 2 User | More limited SMS access (optional) |
All key personnel must:
- Be paid (not unpaid volunteers, typically)
- Be resident in the UK (for AO)
- Pass UKVI’s background checks (no relevant criminal convictions, no previous adverse immigration history with UKVI)
Compliance Duties After Licensing
This is where many sponsors underestimate the ongoing burden. Once licensed, you must:
Record-Keeping
- Keep copies of each sponsored worker’s passport and right-to-work documents
- Maintain up-to-date contact details for each sponsored worker
- Record their National Insurance number and UK residential address
- Track their start date, absences, and any changes to their role or salary
Reporting Duties (via SMS)
You must report within 10 working days if a sponsored worker:
- Does not arrive for their first day of work
- Is absent from work without permission for more than 10 consecutive working days
- Changes their job role significantly
- Stops working for you
- Has a significant change in their salary
- Changes their work location (in some cases)
You must report within 20 working days:
- Any significant changes to your organisation (change of name, address, ownership, cessation of trading)
Right-to-Work Checks
You must conduct right-to-work checks before employment commences. For sponsored workers, this means verifying their visa conditions permit the role.
Compliance Visits
UKVI may conduct announced or unannounced compliance visits. During a visit, an officer will review your records, interview key personnel, and assess whether you are meeting your duties. Being unprepared for a compliance visit is a common cause of licence downgrades and suspensions.
A-Rating vs B-Rating
Licences are either A-rated or B-rated:
- A-rating: Full licence — you can assign CoS and sponsor new workers without restriction
- B-rating: Restricted licence — assigned when UKVI identifies compliance concerns; you cannot assign new CoS until you move back to A-rating via an Action Plan
A B-rating is serious. It requires immediate attention, an agreed Action Plan with UKVI, and a fee to return to A-rating. It often precedes more serious action if the issues are not resolved.
Suspension and Revocation
Suspension
UKVI can suspend your licence if it suspects a breach of duties. Suspension is urgent — you typically have 20 working days to respond with a detailed written submission addressing UKVI’s concerns.
During suspension:
- You cannot assign new CoS
- Your existing sponsored workers’ visas are not immediately affected, but they may be at risk if revocation follows
A strong, prompt response to a suspension notice is critical. Legal advice at this stage is strongly recommended — our sponsor licence suspension and revocation service is designed for exactly these situations.
Revocation
Revocation is the withdrawal of your licence. It means:
- You can no longer sponsor workers
- Your currently sponsored workers’ visas will typically be curtailed (they have 60 days to find a new sponsor or leave the UK)
- A cooling-off period normally applies before a fresh licence application; check the decision and current sponsor guidance for the applicable period
Revocation can arise from serious or repeated compliance failures, misuse of the sponsorship system, or sponsoring workers who are not eligible.
Common Mistakes Made by Employers
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Treating the licence as a one-time task: The compliance obligations are ongoing and demanding. The licence is not granted and forgotten — it requires active management.
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Inadequate HR systems: UKVI will expect formal HR policies and record-keeping. Employers who rely on informal processes often fail compliance visits.
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Assigning CoS incorrectly: CoS must accurately reflect the job role (SOC code), salary, and conditions. Errors are common and can lead to Skilled Worker visa refusals and compliance action.
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Not reporting changes in time: The 10-working-day reporting deadlines are strict. Late or missed reports are a significant compliance risk.
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Changing a sponsored worker’s role without advice: Moving a sponsored worker to a different role — even within the same company — may require a new CoS and, in some cases, a new visa application.
Conclusion
A Sponsor Licence is a powerful business tool — it opens access to a global talent pool that UK-only recruiting simply cannot provide. But it comes with significant legal obligations. Managed well, it is a genuine competitive advantage. Managed poorly, it can result in licence revocation, business disruption, and staff losing their right to work.
If you are considering applying for a Sponsor Licence, are an existing sponsor with compliance concerns, or have received a letter from UKVI, we can help.