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In the UK, getting a Sponsor Licence is generally the first step to sponsoring international workers. At A Y & J Solicitors, we understand the significance of this decision for businesses and its resultant effect on how they grow and compete within their industries. This guide is meant to walk you through all the necessary processes of a Sponsor Licence application, starting from the minute you decide and apply through to when the licence is granted and your Sponsor’s Licence Number is issued. We shall guide you with the paperwork, the timelines, what actual fees you are likely to pay, and common mistakes that cause unnecessary delays or refusals. We will also show you how to keep the process direct, avoid unnecessary risks, and remain compliant so that you can concentrate on hiring talent.
What a sponsor licence does for your business
Through a sponsorship licence, your company can provide Certificates of Sponsorship to persons outside the country for the issuance of their UK work visa. A sponsor licence of a UK company approved by a Home Office will feature in the Register of Licensed Sponsors with a Sponsor Licence Number. It shows the Home Office allowed the organisation is legally able to hire overseas. The Home Office will expect that you will keep perfect records and also inform them of key changes regarding any of your workers who are sponsored while you are using the licence.
Who can apply and how to judge your company size
A sponsor licence is open to any genuine UK organisation that can demonstrate real trading activity. The sponsor should then determine whether it is a small or charitable sponsor, or whether it is medium-sized or large. That would influence how much you would pay as well as how the Home Office would handle your application. For this, you need to look at turnover, assets and number of employees. Knowing the correct category beforehand prevents errors in fees that slow the process of the Sponsor Licence Application and lead to refusals.
How to prepare before you submit
Start by appointing a few named individuals to manage the licence in the Sponsorship Management System. Gather your supporting documents like proof of business registration, proof of trading address, recent bank statements, and clear role descriptions aligned to your intended salary. Keep documents short, focused, and organised. Preparing a concise file that speaks to the questions posed by the Home Office will greatly ease what might been a stressful live compliance visit and significantly mitigate the chances of rejection.
What will it cost you?
You will have to account for three distinct types of cost of Sponsor Licence. The first is the licence application fee paid when lodging the Sponsor Licence application. Small or charitable sponsors now pay £574 while medium or large sponsors pay £1,579. The second is the fee imposed for each assignment of a Certificate of Sponsorship, currently £525 for a Skilled Worker assignment. The last one would be the Immigration Skills Charge that applies in most Skilled Worker situations, at £364 per year for small or charitable sponsors and £1,000 per year for medium or large organisations. The fees changed precisely in 2025. Confirm the exact band that applies to your organisation before you pay.
Understanding the Certificate of Sponsorship fee
In 2025, the fees charged for assigning a Certificate of Sponsorship increased tremendously. This is the transactional cost of Sponsor Licence per certificate that you will be levied each time you allocate a certificate for a skilled worker. For Skilled Worker assignments, the fee is now £525, while most Temporary Worker categories remain at £25. The higher amounts for Skilled Worker assignments and lower amounts for most Temporary Worker categories are now reflected in the Home Office guidance. CoS fee is not to be neglected.
Immigration Skills Charge and who pays it
The levy applies to almost all Skilled Worker assignments and is the main employer contribution to the Immigration Skills Charge. The amount depends on the sponsor’s size and the length of leave — £1,000 per year for large sponsors and £364 per year for small or charitable sponsors. You should factor this in from day one, as it cannot be legally recovered from the worker. If you are unsure whether a role is subject to the charge, check the latest Home Office guidance before assigning the Certificate of Sponsorship to avoid the unexpected cost of Sponsor Licence.
How long does the Sponsor Licence Application take
Most straightforward applications for licences are decided under eight weeks. There is also the possibility to select a pre-licence priority service, for which decisions are intended in about ten working days. Expect the entire experience to be ruled by paperwork, but rewarding for clarity and neat presentation.
After approval, what you receive and how to use it
If your application is successful, you will receive a formal decision letter that includes your Sponsor Licence Number. That number is your official identifier, and you will enter it in the Sponsorship Management System and on every Certificate of Sponsorship you assign. Store the decision letter and the SMS account information safely and make access available only to trusted personnel who understand and are responsible for the reporting duties.
How to check or find your Sponsor Licence Number
The Sponsor Licence Number appears on your decision letter and is also available in your SMS. If you are an employee or prospective employee who needs the number for a visa application, you may provide it or ask them to check the CoS once it is assigned. For verifying another company and checking if it has a licence, you may visit the Home Office public register of licensed sponsors.
Next legal steps
Applying for a sponsor licence is essentially a business move that will trigger the opening up of international talent doors for your company. A proper Sponsor Licence application will save your business from delays and maintain a clean compliance record. If you want practical assistance, we can prepare your application, tell you which fee category to submit your payment against, set up the SMS well-managed and all the paperwork so you do not waste your time or potential candidates. A Y and J Solicitors will do the Sponsor Licence application for you and keep your licence in good standing, so you can focus on hiring.
A Y & J Solicitors is a specialist immigration law firm with extensive experience in assisting with Sponsor Licence applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!