Eligibility and Requirements
Eligibility and Requirements for a Company Applying for a Sponsor License
A company that’s looking to apply for a sponsor licence must demonstrate to the Home Office that it is a genuine company and legally operates in the UK. The company must be compliant with any local authority requirements that apply to the industry the business operates in.
Essential Requirements for a Sponsor Licence
During the sponsor licence application process, the business will need to demonstrate to the Home Office that they are trustworthy and capable of meeting their responsibilities as an approved sponsor licence holder. These requirements include:
Having a suitable monitoring system in place to record workers’ immigration status, track attendance and report to UKVI if there is a problem of a change in circumstances
Ensure the business is ready for any UKVI compliance visit and records are always complete and accessible
Having key personnel in place such as:
Authorising officer - a senior and competent person responsible for the actions of staff and representatives.
Key Contact – your main point of contact with UKVI
Level 1 user – responsible for all day-to-day management of your licence and use of the Sponsor Management System
Having no evidence of non-compliance or having a previous sponsor licence revoked in the last 12 months.
Important: You’ll need to check your business is eligible before you apply.
Documents Needed for a Sponsor License
All possible documentation needed for a Sponsor Licence application is outlined in Appendix A, which is a Home Office guidance document. The document states what would be required from your business based upon your business activity.
Documentation required can include the following:
Companies House Registration
VAT Registration
HMRC Registration
Business Bank Account
Organisational Chart
Employers’ Liability Insurance
Proof of Premises
Local Authority/Council Licences
Tip: Be prepared. You only have 5 working days to send your documents after you apply.
How much does a Sponsor Licence cost?
Application fees for a sponsor licence depend on the size of the business. Businesses are classed as either small or charitable sponsors or medium or large sponsors. Which one your business is classed as is determined by the following.
To be classed as a small or charitable sponsor, the business must meet two of the following criteria:
your annual turnover is £15 million or less
your total assets are worth £7.5 million or less
you have 50 employees or fewer
a registered charity within the UK
The Home Office application fee for a small or charitable sponsor is £574. The application fee for a medium or large sponsor is £1,579.
Step 1
Eligibility check and tailored advice
Step 2
Document preparation
Step 3
Application completion and submission
Step 4
Payment of Home Office Fees
Step 5
Outcome and next steps
How the Application Process Works
How UK Immigration Pathways Can Help You
Applying for a Sponsor Licence can be complex, we’re here to make it simple. We can assess your business eligibility, prepare and review all supporting documentation and then submit your application and liaise with the Home Office. Our expert immigration specialists can also train your staff on compliance and reporting duties as well as support you with ongoing sponsorship management.
Frequently Asked Questions
Standard processing usually takes 8–12 weeks, but you can request the priority service for an additional £500, which aims to provide a decision within 10 working days.
The timeline can vary depending on whether the Home Office decides to conduct a pre-licence compliance visit.
How long does it take to get a Sponsor Licence approved?
Once the sponsor licence has been approved the business will then be able to set up their Sponsor Management System (SMS). SMS is the Home Office’s online portal that allows licensed sponsors to manage their sponsored workers.
Through the SMS, employers can assign Certificates of Sponsorship (CoS), report changes in circumstances, update company details, and maintain compliance with sponsorship duties.
What happens once I have my licence?
There are two types of CoS defined and undefined. Which one is used depends on the location of the worker who will be sponsored:
Defined CoS – A defined CoS is issued to skilled workers who are applying for their visa from outside of the UK. The defined CoS must be applied for and be granted before it can be assigned to the skilled worker.
Undefined CoS – An undefined CoS is issued to a skilled worker who is applying from within the UK. The undefined CoS can be assigned to the skilled worker without the need to submit an application each time.
What are the two types of Certificates of Sponsorship (CoS)?
The cost to assign a CoS in the UK is £525 per skilled worker, and there is also an Immigration Skills Surcharge (ISC) which is an annual fee paid by the employer to sponsor a skilled worker.
Small or charitable sponsor application fee is £364 per year
Medium or large sponsor application fee is £1,000 per year
This is set to increase mid December 2025.
How much does it cost to assign a CoS in the UK?
To verify if a role qualifies for a Skilled Worker Visa the business can check the Home Office’s list of eligible occupations and SOC (Standard Occupational Classification) codes. Each code outlines the skill level and minimum salary required for sponsorship. By matching the job title and duties to the appropriate SOC code, employers can confirm whether the role meets the eligibility criteria for sponsorship under the Skilled Worker route.
How do I know the role I am recruiting qualifies for sponsorship as a skilled worker?
When a sponsored employee leaves their role, the business must report the change on the Sponsor Management System (SMS) within 10 working days. This includes recording the employee’s last working day and the reason for their departure. Prompt reporting ensures the sponsor remains compliant with their Home Office duties and avoids potential action against their licence.
What happens if the employee leaves?
The Authorising Officer (AO) is the senior person responsible for the organisation’s overall compliance with its sponsor duties and management of the Sponsor Management System (SMS).
Level 1 users handle the day-to-day activity on the SMS, such as:
assigning Certificates of Sponsorship
updating company or employee details
reporting changes to the Home Office.
Both roles are accountable for ensuring information is accurate, up to date, and fully compliant with sponsor licence requirements.
What are my duties and responsibilities?
During a Home Office Compliance Visit, officials assess whether the business is meeting their immigration and record-keeping duties. They may review HR systems, interview staff, and examine documents related to sponsored workers. The visit determines whether the business remains compliant, outcomes can include maintaining, downgrading, suspending, or revoking the sponsor licence depending on the findings.
What happens during a Home Office Compliance Visit?
If your sponsor licence is suspended, it means the Home Office has identified potential non-compliance with your sponsorship duties. During the suspension, you cannot assign new Certificates of Sponsorship (CoS), although existing sponsored employees can usually continue working.
You’ll be given the opportunity to respond to the Home Office’s concerns, and depending on your reply and any corrective actions taken, the licence may be reinstated, downgraded, or revoked.
What happens if my licence is suspended?
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Director, UK Immigration Pathways
What is a Sponsor Licence?
A Sponsor Licence is permission granted by the UK Home Office that allows a business to legally employ workers from outside the UK who need a visa to work in the UK. Without a licence, your company cannot issue the necessary Certificate of Sponsorship (CoS) required for a Skilled Worker or Temporary Worker visa.
In short, it’s the first essential step for any UK employer who wants to hire international talent.
