Sponsor Licence for Employers

Before applying for a sponsor licence, you must be confident that your organisation meets the eligibility criteria and has the systems in place to meet its ongoing sponsorship duties. The key steps are:

• Check your organisation is eligible — Your organisation must be a genuine UK-based business operating lawfully, must have a genuine need to hire overseas workers, and must not have had a licence refused or revoked in the past year.
• Appoint key personnel — You must nominate an Authorising Officer (senior person responsible for the licence), a Key Contact, and Level 1 Users who will administer the Sponsor Management System (SMS). These roles can overlap.
• Prepare supporting documents — UKVI requires evidence that your business is genuine. Depending on your organisation type, this typically includes a VAT registration certificate, employer's liability insurance, evidence of premises, latest accounts, and PAYE/UTR registration. The full list is in the sponsor guidance.
• Apply online — Submit your application through the Sponsor Management System. Pay the application fee (£536 for small or charitable sponsors, £1,476 for medium/large sponsors).
• Await decision — Standard processing is around 8 weeks. If UKVI wants to conduct a pre-licence compliance visit, this will extend the timeframe. Priority processing (£500 additional fee) gives a decision within 10 working days.

Holding a sponsor licence is a significant ongoing commitment. Sponsors must:

• Conduct right to work checks — Before employing anyone (not just sponsored workers), you must check they have the right to work in the UK and keep records of the evidence seen.
• Maintain accurate records — Keep copies of sponsored workers' passports, visas, BRPs or eVisas, contact details, and employment contracts. Records must be easily retrievable for a UKVI compliance visit.
• Monitor and report — Report to UKVI within 10 working days if a sponsored worker does not turn up to work, stops working for you, takes unauthorised absence, or if their circumstances change significantly.
• Manage the Sponsor Management System — Assign Certificates of Sponsorship, track workers' visa expiry dates, and keep the SMS up to date.
• Cooperate with UKVI compliance visits — UKVI inspectors can visit unannounced. You must cooperate and provide access to records.
• Renew the licence — Sponsor licences are issued for four years and must be renewed. Begin the renewal process well before the expiry date.

A Certificate of Sponsorship (CoS) is a virtual document — a reference number allocated in the Sponsor Management System — that confirms you are sponsoring a specific worker for a specific role. There are two types:

• Undefined CoS — Used for workers applying from outside the UK. These are allocated from a pool that UKVI assigns to each sponsor. You may need to apply for additional allocations if you need more than your initial allocation.
• Defined CoS — Used for workers applying to extend their visa or switch from within the UK, or for those earning above the senior or specialist worker threshold. These do not require a pool allocation and can be issued freely.

Each CoS must include accurate details about the job role, salary, start date, and duration of sponsorship. Errors in the CoS can lead to visa refusals and must be carefully checked before assigning. Once you assign a CoS, the worker has three months to use it in a visa application.

UKVI takes sponsorship compliance seriously. Common compliance failures that lead to licence suspension or revocation include:

• Failing to conduct or retain evidence of right to work checks
• Not reporting changes in workers' circumstances or employment
• Paying sponsored workers below the required salary threshold
• Sponsoring workers in roles they are not actually performing
• Failing to keep the SMS updated with current worker and business information
• Employing illegal workers alongside licensed sponsored workers

Consequences of non-compliance range from a formal warning to downgrade to a B-rating (which restricts your ability to issue new CoS while you correct the problem), suspension, or full revocation. Revocation means all sponsored workers must find a new sponsor or leave the UK within 60 days. For many businesses, loss of a sponsor licence would be catastrophic. Investing in robust HR systems and regular internal audits is essential.