Sponsorship Licence: UK Employer’s Complete Guide (2025)

The UK’s Skilled Worker visa is one of the primary immigration routes for non-UK citizens seeking employment. For businesses aiming to hire from overseas, a valid sponsorship licence is essential. But how do you get one? What are the compliance obligations? And how can you avoid costly delays or refusals?

This complete 2025 guide answers these questions, helping UK employers understand the sponsorship licence process from start to finish.

Whether you’re a startup hiring your first overseas developer or a large corporation expanding your global workforce, this guide is your roadmap.

What is a UK Sponsorship Licence?

A sponsorship licence is a government-issued permission that allows UK employers to hire foreign nationals under visa routes such as:

• Skilled Worker visa
• Senior or Specialist Worker
• Scale-up Worker visa
• Seasonal Worker visa

It is issued by the UK Home Office and is valid for 4 years. Employers must meet rigorous requirements to obtain and maintain this licence.

You cannot sponsor foreign workers without it.

Who Needs a Sponsorship Licence in 2025?

You will need a licence if:

• Your business wants to hire a non-UK resident
• The candidate does not have existing work rights (e.g. dependent, ILR, citizen)
• You are using the Skilled Worker or any other work visa route

This applies across all sectors: tech, healthcare, retail, hospitality, education, and more.

Step-by-Step Guide to Applying for a Sponsorship Licence

Step 1 – Check Eligibility

Your business must:

• Be registered and operating in the UK
• Not have unspent criminal convictions or Home Office penalties
• Have key personnel in place (Authorising Officer, Level 1 User)

Step 2 – Prepare Required Documents

Prepare at least 4 supporting documents:

• VAT registration certificate
• Business bank account details
• HMRC PAYE and accounts reference numbers
• Employer’s liability insurance certificate
• Lease or proof of premises

Step 3 – Set Up HR Systems

You must show you can:

• Conduct right-to-work checks
• Monitor absences and visa expiry
• Keep up-to-date employee records

Learn more in our Visa Extension and Compliance Guide.

Step 4 – Complete Online Application

Submit your application via the UKVI Sponsorship Management System (SMS). Upload documents and pay the fee:

• Small businesses/charities: £536
• Medium/large sponsors: £1,476

Step 5 – Respond to Home Office Inquiries

The Home Office may:

• Request additional evidence
• Conduct a pre-licence compliance visit (virtual or in-person)

If all goes well, your licence will be granted within 8 weeks (standard) or 10 working days (priority).

Types of Sponsorship Licences

There are two licence types:

• Worker Licence: For long-term roles under Skilled Worker, Global Business Mobility, or Minister of Religion routes.
• Temporary Worker Licence: For short-term visas like Creative Worker, Charity Worker, or Seasonal Worker.

Your business can hold both licence types if needed.

Post-Approval: Duties & Responsibilities

Once approved, sponsors must:

• Assign Certificates of Sponsorship (CoS) via the SMS portal
• Monitor and report migrant activity (absences, address changes)
• Renew the licence every 4 years

The sponsor must also:

• Keep copies of right-to-work documents
• Maintain attendance and performance records

What Happens During a Sponsorship Audit?

Why Audits Occur

• Random inspections
• Pre-licence checks
• Triggered by reports or changes

What Auditors Look For

• Right-to-work check evidence
• CoS assignment justification
• Payroll records and HR policies

How to Prepare

• Conduct a mock audit
• Store records digitally
• Train HR staff

Read our detailed Sponsor Audit Preparation Guide.

Common Reasons for Refusal or Suspension

• Incomplete documents
• Failing the genuineness test
• Weak HR processes
• Previous sponsor licence revoked
• Poor response to Home Office queries

Appeals can be costly and time-consuming. Avoid these mistakes by consulting our Visa Refusals & Appeals team early.

Benefits of Becoming a UK Sponsor

• Access global talent pool
• Fill key skill gaps
• Improve business innovation and diversity
• Retain staff longer via visa stability
• Build international credibility and growth

Internal Links for Further Help

• Skilled Worker Visa Overview
  
• Self-Sponsorship Guide
• Sponsor Licence Services
• Visa Extension and Compliance
• Visa Refusals and Appeals

Conclusion

In 2025, the need for skilled foreign workers in the UK continues to rise. A sponsorship licence not only opens your recruitment to a global market but also builds long-term staffing resilience and compliance confidence.

At Immigration Solicitors Partnership, we’ve helped hundreds of UK businesses secure, manage, and renew their sponsor licences. If you’re ready to expand your team with global talent, we’re ready to help.

Contact our sponsorship experts today or browse our Immigration Blog for real-world insights.