Can A UK Sponsor Licence Be Transferred During A Merger Or Acquisition?

A UK sponsor licence cannot be directly transferred to a new owner as part of the sale of a business. If a merger, acquisition or restructuring changes the sponsor’s direct ownership—or moves sponsored workers to a different employer—the businesses involved may need to report the transaction and apply for a new sponsor licence.

In most relevant cases, action must be taken within 20 working days of the change.

The correct process depends on how the transaction is structured. A share sale, asset purchase, merger and partial carve-out can each produce a different sponsorship outcome.

Key points

• A sponsor licence belongs to the licensed organisation and cannot be transferred.

• Relevant corporate changes must normally be reported within 20 working days.