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UK employers who want to hire overseas workers will usually need a valid sponsor licence. The licence gives access to international skills but also places the business under Home Office scrutiny.
Sponsorship is not a one-off permission. It’s an ongoing duty that requires sound HR systems, accurate record keeping and readiness for inspection.
Employers who fail to comply risk losing their licence, disrupting their workforce and damaging their reputation.
Applying and Login Systems
Applications are made online through the Home Office “Apply for a sponsor licence” service. This is distinct from the UK visa application login, which is used by individuals for personal visa applications. Employers must prepare carefully, as the Home Office expects evidence that the business is genuine and capable of fulfilling sponsorship duties.
The rules are set out in the official sponsor guidance, which should be treated as a manual for HR and compliance staff. These are updated regularly, so employers must always refer to the latest version.
The mandatory supporting documents are listed in Appendix A, with requirements that vary depending on business structure. Submitting the wrong evidence or leaving gaps can result in a ‘sponsor licence refused’ outcome.
Employers also need to ensure their HR systems, record keeping and compliance procedures are ready before applying, as these may be inspected during the process.
Applicants also have to appoint suitable key personnel to manage their sponsor licence.
Some employers consider alternative or complementary models such as umbrella company visa sponsorship, but these tend to be relevant in only limited situations and still require clear allocation of compliance responsibilities.
Sponsor Licence Categories
The type of licence dictates which immigration routes an employer can use.
The most widely held is the Skilled Worker sponsor licence. Some employers still refer to this as a PBS licence, reflecting the legacy Points-Based System that previously applied to Tier 2 and Tier 5 routes.
Multinational groups may sponsor workers under the Global Mobility sponsor licence category of the Global Business Mobility routes, such as Senior or Specialist Worker or Service Supplier.
For example, overseas businesses establishing themselves in the UK may apply for the UK Expansion Worker sponsor licence. High growth companies may opt for the Scale Up sponsor licence to support rapid expansion.
Costs and Priority Services
Employers should plan for sponsorship costs. Many compare the self sponsorship visa cost with the fees for a sponsor licence. The sponsor licence application fee itself varies depending on the size of the organisation and the category of licence sought. In addition, there are costs associated with training HR staff, updating systems and preparing for potential audits.
The Home Office offers optional priority services. The sponsor licence application priority service can speed up the initial decision.
Employers should also consider how long applications will take. Many ask, how long does it take to get a sponsorship licence. Timelines vary depending on demand, the complexity of the application and whether priority services are available at the time.
Once licensed, employers that need Certificates of Sponsorship quickly can apply through the CoS allocation priority service. After approval, organisations may also rely on the post licence priority service guidance to fast-track certain changes, such as appointing new key personnel.
Employers must also ensure that their sponsor licence number is correctly used in all applications. Errors here can affect the outcome of a worker’s visa and lead to compliance queries.
Compliance Obligations
Compliance is not limited to the application stage. While sponsor licence renewal is no longer required for most licences, sponsors remain under continuous obligations. These include keeping accurate records and reporting changes to the Home Office.
The duties are set out in detail under sponsor duties and compliance rules. They cover reporting, record keeping, monitoring employee status, and ensuring sponsored staff meet visa conditions.
Employers must be prepared for checks at any time. The Home Office may carry out a UKVI compliance visit either before granting a licence or during its validity. These inspections test whether HR records are accurate and whether sponsored workers are employed in line with visa conditions.
If compliance concerns arise, the Home Office may take enforcement action. Breaches can lead to penalties such as a sponsor licence downgrade, suspension or revocation. Once a licence has been revoked, employers usually face a sponsor licence cooling off period, which restricts when they can reapply.
The government maintains the Register of Licensed Sponsors, which lists organisations approved to sponsor overseas workers. Inclusion on the register shows compliance with sponsor duties. Removal from the register signals that a licence has been lost or enforcement action has been taken. Employers should be aware that competitors, clients and workers may all refer to the register when assessing business credibility.
There is no official ‘Tier 2 sponsor licence suspended list’ or revoked sponsor licence list provided by the Home Office. Instead, enforcement is dealt with on a case-by-case basis.
Sponsored workers sometimes ask, can my sponsor cancel my visa? The answer is yes. If employment ends or the role changes significantly, the sponsor must report this, which can result in the worker’s sponsorship visa being curtailed.
Need Assistance?
A sponsor licence enables UK employers to access overseas skills, but sponsorship also creates responsibilities that cannot be overlooked. From the initial application, through costs, duties and audits, compliance must be treated as central to business governance. Employers who invest in strong HR systems, monitor updates to the sponsor guidance, and seek timely legal support are best placed to safeguard their licence.
Because of the risks, many employers rely on professional support. Our specialist sponsor licence solicitors help prepare applications, strengthen HR systems and respond to Home Office enforcement. As a dedicated team of sponsor licence lawyers, we also advise on structuring compliance responsibilities across HR and legal teams, ensuring that key roles are covered.
If you need advice on any aspect of a UK sponsor licence, contact our UK immigration lawyers for specialist guidance.