UK Sponsor Licence 2025 Business Guidance

Obtaining a sponsor licence is the formal authorisation that allows a UK business to employ non-settled workers under the Worker and Temporary Worker routes. The regime is technical and spread across hundreds of pages of Home Office guidance. Below is a clear, business-focused overview of how the system works, what evidence is expected, and what happens after grant.

Who needs a Sponsor Licence?

If your UK company wants to employ most non-settled workers on routes like Skilled Worker or Global Business Mobility, you must hold a Sponsor Licence. You need to apply online, submit specified supporting documents, once approved, you need use the Sponsorship Management System (SMS) to assign Certificates of Sponsorship (CoS) to eligible roles. 

A licence is granted indefinitely (unless revoked or suspended). You’ll be added to the public Register of Sponsors and can then sponsor workers who meet the requirements.

Is Your Business Eligible To Apply For a UK Sponsor Licence?  

Before a licence is granted, UKVI must be satisfied that you are a genuine UK organisation operating lawfully and that you are dependable and capable of meeting sponsor duties. They can check your HR systems, any relevant convictions or civil penalties, whether you are already employing anyone in breach of their conditions, and whether you can genuinely offer employment meeting route requirements (genuine vacancy, salary and skill level). UKVI may conduct pre-licence compliance visits (in person or digital) and can visit home addresses if sponsored workers work from home.

What are Key Personnel of a Business?

You must nominate:

• Authorising Officer (AO) – the senior person accountable for sponsorship.
• Key Contact – UKVI’s primary point of contact.
• Level 1 User – manages the licence on the Sponsorship Management System (SMS).

UKVI requires at least one Level 1 User who is a settled worker/British citizen throughout the life of the licence (subject to limited exceptions). Decision notices issue to the AO; document requests ordinarily go to the Key Contact. Communications are directed to a legal representative only if that representative has been nominated as the Key Contact.

Prepare for Your Business’ UK Sponsor Licence Application

The application is made online. You must pay the applicable fee (depending on your business’s size/status). A pre-licence priority service is available for certain routes.

You must be ready to send the required supporting documents within 5 working days of submission. UKVI can ask for more evidence and will normally give 5 working days for business to provide it. Your AO signs the submission sheet; evidence is sent electronically in the specified formats.

If risk indicators are present, UKVI may inspect your HR systems and interview relevant personnel before deciding. If approved, your decision letter will confirm your A-rating, your sponsor licence number and your initial allocation of Certificates of Sponsorship (CoS). If refused, there is no right of appeal, but you may use the error-correction process within 14 calendar days for simple caseworking errors. Cooling-off rules can apply before re-applying.

What Evidence UKVI typically expects (Appendix A)?

Appendix A lists what most organisations must provide. In practice, core items for many SMEs include: employer’s liability insurance (min. £5m), recent business bank statements from a UK-regulated bank, PAYE/NI registration evidence, premises/lease documentation or fixed-asset proof, and a hierarchy chart naming directors/owners and staff. UKVI can reject for missing mandatory documents and will usually give 5 working days to cure any additional information requests.

Skilled Worker Roles: Genuineness, Skill and Salary

For Skilled Worker sponsorship, UKVI assesses whether the role is a genuine vacancy aligned to an eligible occupation code, at the appropriate skill level, and paid at or above the route threshold and the occupation’s going rate. Clear job descriptions, credible organisational context and coherent recruitment evidence are important in practice.

How Angelov Solicitors helps

Our role is to make the process manageable and compliant:

• We project-manage your Sponsor Licence application form readiness through decision
• We provide practical guidance on HR/recruitment processes that support sponsor duties from day one
• Once licensed, we can assist with first-year CoS planning and workflow, and where instructed, we can prepare the worker’s Skilled Worker visa application so timelines align smoothly
• We issue concise obligations checklists so reporting and record-keeping are handled consistently