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Sponsor License

Sponsor License Application Guidance (2023)

What is a Sponsor License?

A sponsor license is an authorization granted by the UK Home Office to eligible employers, allowing them to employ non-EEA (European Economic Area) or Swiss skilled workers. With a sponsor license, you can issue Certificates of Sponsorship (CoS) to prospective employees, enabling them to apply for a UK work visa. This license is a prerequisite for sponsoring skilled workers, enabling employers to extend job opportunities to non-resident individuals.

*For questions on any aspect of your sponsor license, please contact our business immigration lawyers for telephone consultation at 98158-53254 or by email at global.solicitors@yahoo.in

Benefits of Sponsor Licensing

Obtaining a sponsor license offers numerous advantages for organizations looking to expand their talent pool and enhance their global presence. Let’s explore some key benefits that come with being a licensed sponsor.

Streamlined Recruitment Process

Obtaining a sponsor license allows you to streamline your recruitment process by accessing the UK’s Sponsorship Management System (SMS). This system provides a user-friendly interface for managing sponsorship applications, certificates of sponsorship, and compliance responsibilities, making it easier to attract and hire international talent.

Access to Global Talent

Sponsor licensing enables you to tap into a global pool of talent and attract highly skilled individuals from around the world. This allows your organization to bring in individuals with specialized expertise, knowledge, and diverse perspectives, which can contribute to innovation and growth.

Compliance with Immigration Regulations

Holding a sponsor license ensures that your organization remains compliant with immigration regulations and avoids legal issues. It provides you with the necessary framework to follow the rules and regulations set by the government, reducing the risk of penalties or reputational damage.

Retention of Highly Skilled Employees

By sponsoring employees through the visa process, you demonstrate your commitment to their professional development and long-term career growth. This can increase employee loyalty and retention rates, as sponsored individuals are more likely to feel valued and invested in your organization.

Building a Global Network

Being a licensed sponsor allows you to establish connections and collaborations with international partners, universities, and research institutions. This fosters a global network of talent and opens doors to potential business opportunities, knowledge exchange, and research collaborations, enhancing your organization’s overall competitiveness and reputation.

Sponsor License Eligibility Requirements

To obtain a sponsor license in the UK, organizations must meet specific eligibility requirements set by the Home Office. These requirements ensure that businesses are committed to complying with immigration regulations and maintaining a responsible sponsorship system. To qualify for a sponsorship licensee, an organization must meet the following requirements:
  • Demonstrating a legitimate business or organization operating in the UK.
  • Upholding specific HR practices and systems to ensure compliance with immigration rules.
  • Providing evidence of a genuine need for employing sponsored migrants.
  • Adhering to legal and ethical standards within your industry.
  • Complying with the UK's Sponsor Guidance and the Immigration Rules.
  • Must have a physical office space and a UK bank account with the latest corporate bank account statement.
The applicant must be a genuine and legally operating PLC, LTD, LLP, or Sole Trader in the UK to qualify for a sponsored licensee. Moreover, they must hold the necessary planning permission or consent from the Local Planning Authority to operate the particular type of business at the trading location.

Types of Sponsor License

In UK, there are two main types of sponsor licenses that organizations can apply for, The Tier 2 Sponsor License and the Tier 5 Sponsor License. Each license type is associated with different immigration routes and categories. Here’s a brief overview of these sponsor license types:

Tier 2 Sponsor License

The Tier 2 Sponsor License allows UK businesses to sponsor skilled workers from outside the European Economic Area (EEA) and Switzerland. This license is suitable for organizations looking to hire skilled professionals on long-term employment contracts. The Tier 2 license includes several categories, such as Tier 2 (General) for skilled workers, Tier 2 (Intra-Company Transfer) for multinational companies transferring employees to the UK, and Tier 2 (Minister of Religion) for religious workers.

Tier 5 Sponsor License

The Tier 5 Sponsor License permits organizations to sponsor temporary workers from outside the EEA and Switzerland. This license is designed for short-term employment opportunities, including various categories such as Tier 5 (Temporary Worker – Creative and Sporting), Tier 5 (Temporary Worker – Charity Worker), Tier 5 (Temporary Worker – Religious Worker), and more. Each category has specific requirements and conditions depending on the nature of the work.

Sponsor License Application Process

It is necessary for a business to complete a number of steps in order to become a sponsor, including:
  • Determine which categories and tiers it would like to include in the license.
  • Assess its eligibility and suitability for each category/tier, and update its HR systems accordingly.
  • Decide who will be "Key Personnel" (Authorizing officer, Key contact, Level 1 user, and Level 2 user)
  • Assemble the necessary documents for submission with the application.
  • Select the number of Certificates of Sponsorship (CoS) that you would like to request during the first year of the license.
  • Send the online application and hardcopy documents to the Home Office.
  • Where relevant, prepare for and attend the Home Office site visit to the organization’s offices.
  • Obtain the decision

List of Documents required for the UK Visa Sponsorship

The Home Office provides detailed guidance for UK sponsor licensee applicants, which outlines the necessary documents to be submitted. Typically, a minimum of four documents is required, although certain public bodies recognized by the UK Government may be exempt from this requirement. It’s important to note that the following list is not exhaustive but provides a glimpse of the documents that may be requested:
  • Proof of genuine and active business, such as recent financial year accounts.
  • Copies of contracts for goods or services spanning at least 12 months prior to the application date.
  • Evidence of a current corporate bank account with a UK bank registered by the Financial Conduct Authority and the Prudential Regulation Authority.
  • VAT registration certificate.
  • Franchise agreement (if applicable).
  • Proof of registration.
  • Endorsement from a governing body.
  • For religious worker sponsorship, information about the parent organization, hierarchy chart, adult congregation size, clergy employment details, meeting place addresses, and worship schedule.
  • Evidence of connection to a qualifying overseas business through common ownership, control, or a joint venture agreement.
  • Proof of a graduate training program.
  • Verification of your UK "footprint" (e.g., establishment of operations, office, or premises).
  • Evidence of your overseas trading presence.
  • Documentation showcasing your planned expansion into the UK.
It is crucial to consult the official sponsor license guidance for the most up-to-date and comprehensive information specific to your situation, as these requirements may evolve over time.

How much does a sponsor license application cost?

The cost of a sponsor license is determined by the size and kind of the company. This application cost is due every four years when the sponsor renews their license. The Home Office reviews fees on an annual basis and publishes the changes.
Sponsor license fees of £1,476 are required for “medium” and “large” organizations. This charge would be levied on any organizations that do not fulfill the definition of a “small” sponsor.

Normally, an organization qualifies as a minor sponsor if two of the following conditions are met:

  • Your annual turnover is £10.2 million or less
  • Your total assets are worth £5.1 million or less,
  • You have 50 or fewer workers
Registered charities are also considered “small” sponsors.

Sponsor license fees of £536 are needed for organizations categorized as “small” sponsors.

There is no price if you currently have a ‘Skilled Worker’ sponsor license (previously known as a Tier 2 sponsor license) and opt to add a subcategory. For example, if you have a Skilled Worker license (formerly Tier 2 General) and want to start sponsoring migrants under the Senior or Specialist Worker Visa (formerly Tier 2 Intra-Company Transfer), all you have to do is submit an application through the Sponsor Management System to add a subcategory – no Home Office fee would apply.

How long will the sponsor license be valid?

The sponsor license for businesses in the UK is typically valid for a period of 4 years. This applies to both Tier 2 Sponsor Licenses and Tier 5 Sponsor Licenses. However, it’s important to note that the sponsor license needs to be renewed before it expires if the organization wishes to continue sponsoring and employing non-EEA/Swiss workers.

Renewal applications should be submitted well in advance of the license expiration date to ensure continuity in sponsoring workers. It’s crucial for organizations to maintain compliance with the sponsorship duties and responsibilities throughout the validity of their sponsor license to avoid any disruptions in their ability to hire and retain non-EEA/Swiss employees.

What is the processing time for a sponsor license application?

As a rule, applications are processed within eight weeks of receipt, with the Home Office conducting a compliance inspection at your office to ensure you are meeting your sponsorship obligations during the processing time. There is the option of making a priority service request with the Home Office, and if it is accepted, it will require a payment of £500, after which the application will be processed within ten working days.

It is also possible that your application will be denied if all sponsorship duties are not met during the visit.

Why was my sponsor license application refused and what can I do now?

The following reasons may lead to the refusal of a sponsor license:

  • Failure to comply with the requirements of the sponsor license.
  • Failure to respond on time to the Home Office’s inquiries
  • Having concerns about the authenticity of your application
  • Unspent criminal convictions
  • Providing incorrect or false information
  • An opportunity to cool off after a refusal to grant a sponsor license

What If I employ migrant workers without a sponsorship license?

Employing migrant workers without a sponsorship license in the UK is illegal and can have serious consequences. The UK has specific immigration rules and requirements in place to regulate the employment of non-EEA/Swiss workers. If you employ migrant workers without the necessary sponsorship license, you may be in breach of immigration laws and subject to penalties and legal actions.

Consequences of employing migrant workers without a sponsorship license can include:

  • Civil penalties: The Home Office can impose significant civil penalties for employing workers without the required authorization. These penalties can amount to thousands of pounds per worker.
  • Criminal prosecution: In some cases, employing migrant workers without a sponsorship license may be considered a criminal offense. This can lead to criminal charges, fines, and even imprisonment for the individuals involved, such as employers or responsible officers of the organization.
  • Reputational damage: Engaging in illegal employment practices can severely damage the reputation of your organization. This can have long-lasting consequences, including loss of trust from customers, clients, and business partners.
  • Inability to sponsor workers in the future: If you are found to have employed migrant workers without the necessary sponsorship license, it can impact your ability to obtain a sponsor license in the future. The Home Office may view such actions as evidence of non-compliance and may scrutinize future applications more rigorously.

How do I get my sponsor license number?

Once your sponsor license application has been approved, you will receive your sponsor license number from the Home Office. The sponsor license number is a unique reference number assigned to your organization and is required for various immigration-related processes and interactions with the Home Office.

To obtain your sponsor license number, you should receive a notification from the Home Office confirming the approval of your sponsor license application. This notification typically includes important details such as your sponsor license number, the start date of your license, and any specific conditions or restrictions associated with it.

It’s important to keep a record of your sponsor license number in a secure and easily accessible place. You may need to provide this number when sponsoring individuals, assigning certificates of sponsorship, and fulfilling other sponsorship duties.

If you have not received your sponsor license number or need further clarification, it is advisable to contact the Home Office’s Sponsor Licensing Team directly. They will be able to provide you with the necessary information and support regarding your sponsor license.

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