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Sponsor licence

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Posted in: Business immigration
Date published: 21/06/2023

1. Introducing the Sponsor licence

Brexit has fundamentally changed who and how companies recruit, bringing both EU and non-EU workers under the same visa regime.

In practice, it means that UK based businesses looking to hire foreign employees must apply to the Home Office for authorization, known as a sponsor licence, to do so.

Since the new immigration system took effect, the number of companies holding a sponsor licence has doubled, with more than 50,000 sponsors currently on the register. More businesses are applying every day, facing staff and skills shortages across all sectors in the post-Brexit business landscape.

2. Sponsor licence requirements

In theory, any genuine organization operating lawfully in the UK can apply for a sponsor licence. You will be expected to provide a number of company-related documents to support your application.

It is equally important to demonstrate that the decision to apply is based on your hiring needs that cannot be met by local workforce.  

You should also have satisfactory HR systems and practices in place to monitor the immigration status of your employees and to ensure compliance with the other immigration requirements.

Finally, at least one member of staff, preferably someone from upper management, will act as a key person responsible for the operation and maintenance of a sponsor licence, if approved. Some of the functions can be delegated to your legal representative.

3. Sponsor Iicence application process

You must apply online for a sponsor licence. The application fee ranges from £536 to £1,476, depending on the size and structure of your business.

Typically, it can take 2-3 months before you receive a decision on your application. For an additional £500, you may be able to opt for the priority, reducing the processing times to 10 working days.

During this period, the Home Office may arrange to visit your offices and to discuss your application in person. This is also known as a compliance audit – the UK immigration authorities must be satisfied that you will honour your commitments as a licenced sponsor if they are to grant your application.

Once approved, your sponsor licence will be valid for 4 years and can start hiring suitable candidates from overseas using your access to the Sponsorship Management System, an online portal created by the Home Office for licensed sponsors to manage the organization’s licence activities.

As long as you continue to meet the eligibility criteria, you can apply to extend it as many times as necessary.

Would you like to learn more about hiring foreign workers in the UK? Speak to us at 0330 107 0106 or business@imd.co.uk.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

Published by:

Evgenia KabanovaConsultant

Business Services – IMD Corporate

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