Understanding how to apply for a sponsor licence is an essential first step in the sponsorship process. This licence allows employers in the UK to legally employ non-EEA nationals on a skilled worker visa, providing a vital pathway for businesses seeking to enhance their workforce with international talent.
The importance of obtaining a sponsor licence cannot be understated, as it not only enables companies to issue a certificate of sponsorship (CoS) but also ensures compliance with UK immigration rules.
In this article, we will shed light on the key steps and requirements involved in the sponsor licence application process and provide links to our comprehensive guides on key areas.
What is a Sponsor Licence?
A sponsor licence is a mandatory certification that allows UK organisations to employ non-residents, including those from the EU, Iceland, Liechtenstein, Norway, and Switzerland post-December 2020. This licence is mandatory for both paid and unpaid roles, such as charity work. The Home Office uses the sponsor licence system to prevent illegal employment and misuse of the immigration system, ensuring organisations meet strict compliance obligations.
Learn more about what a sponsor licence is.
Types of Sponsor Licences
There are two primary categories of sponsor licences: 'Worker' and 'Temporary Worker'. Each is designed for different employment needs. The 'Worker' licence covers long-term roles such as Skilled Workers, Intra-company Transfers, Ministers of Religion, and International Sportspersons. On the other hand, the 'Temporary Worker' licence is for short-term positions in fields like the creative industries, charitable sectors, and religious organisations.
For a deeper dive, read our article on types of sponsor licences.
How to Apply for a Sponsor Licence
Preparing Your Business
To initiate the sponsor licence application, organisations must ensure they meet eligibility criteria, including being a genuine business operating lawfully within the UK. This involves preparing a set of mandatory documents such as the latest audited accounts, employer’s liability insurance certificate, and evidence of business premises ownership or lease.
Filling Out the Online Application
The application process begins with filling out the online form accessible via the Sponsor Management System (SMS). Organisations must specify the type of licence they are applying for, provide contact information, and nominate key personnel responsible for sponsorship duties.
Submitting Required Documents
Once the online application is submitted, a submission sheet must be completed, signed by the authorising officer, and sent to the Home Office along with other supporting documents within five working days. These documents should be scanned and emailed in PDF, JPEG, or PNG format.
Application Fees
The fee for a sponsor licence depends on the size and type of the organisation, ranging from £536 for small or charitable sponsors to £1,476 for larger organisations. Payment of the correct fee is crucial as underpayment can lead to application rejection.
For more details, check out our guide on sponsor licence fees.
Handling Sponsor Licence Application Outcomes
Possible Decision Outcomes
When applying for a sponsor licence, the Home Office may either grant the licence with an A-Rating, reject it due to procedural issues, or refuse it based on more substantive grounds. Rejections typically involve minor application errors that can be rectified, allowing for immediate reapplication. Refusals, however, may lead to a non-refundable fee and a cooling-off period, during which reapplication is barred.
What to Do if Your Application is Rejected
Should your sponsor licence application be rejected, it is vital to address any errors promptly. This could involve submitting missing documents or correcting fee payments. Once these issues are resolved, reapplication can occur immediately, as rejections do not affect your eligibility for a licence.
Renewing Your Sponsor Licence
For sponsor licences due to expire post-April 2024, renewal applications and associated fees will no longer be necessary, thanks to new Home Office regulations extending all relevant licences by 10 years. However, maintaining compliance remains of utmost importance, as failure to adhere to sponsorship duties can still result in penalties or revocation of the sponsor licence.
Read more about sponsor licence renewals.
Require Assistance with Your Sponsor Licence? Let Us Know
If you need assistance navigating the complexities of sponsor licence duties, Borderless is here to help. Borderless has empowered over 250 employers and supported more than 2,500 individuals by making sponsorship effortless. Combining cutting-edge technology with human expertise, Borderless assists with sponsor licence applications, recruitment, visa processing, and compliance. With thousands of pre-vetted professionals and automated solutions, Borderless is the trusted partner for navigating the complexities of immigration. Contact us today for a consultation.
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