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What is a sponsor licence
A sponsor licence is permission from the Home Office that allows ZAR Immigration to employ non-British nationals who would not otherwise have the right to work in the UK. The Skilled Worker Sponsor Licence enables the hiring of individuals for roles requiring specific skill levels, either full-time or part-time, provided they are paid above a set salary threshold. Workers can be sponsored for any duration up to five years, and while there is no limit to the number of employees sponsored, all must work directly for the licence holder and not be placed with third parties. Other available licences include the Scale-up Worker Licence and various routes under the Global Business Mobility scheme, such as intra-company transfers, opening a UK branch, hiring service suppliers, and secondment arrangements.
Who can apply for a Sponsor Licence
Any genuine UK-based business that is established and actively trading can apply for a sponsor licence, provided it hasn’t been disqualified. Start-ups are eligible as long as they are operational. The business must have at least one British citizen or settled worker in a senior role responsible for recruiting overseas workers; this person will authorise the application and liaise with the Home Office.
You can apply for a sponsor licence at any time if there is a genuine vacancy to fill. While there’s no need to prove that no resident worker could do the job, you may need to explain why a migrant worker is required. If you have already identified a candidate, it’s advisable to justify their selection and confirm the role was not created solely to aid their immigration.
Documents required in support of the sponsor licence application
The documents required for a sponsor licence application vary based on the company’s structure, size, and business activity. Regulated businesses must show proof of registration with the relevant authority. In general, at least four supporting documents are needed, such as VAT registration, company accounts, bank statements, lease agreements, and HMRC correspondence confirming PAYE and accounts office reference numbers, as well as CT600 and CT603 forms. Businesses with fewer than 50 employees must also provide an organisational chart naming all employees, clearly showing the roles intended for sponsored workers and their reporting lines.
Sponsor licence application process
The Skilled Worker sponsor licence application is submitted online. To maximise approval chances and avoid delays or pre-licence visits, it’s recommended to carry out an immigration audit beforehand and include a detailed cover letter addressing potential Home Office concerns.
The online form takes about 20–30 minutes and includes questions about your business size, location, nature of trade, planned sponsored roles, and how many workers you intend to sponsor in the first year. You’ll also need to name key personnel responsible for managing the licence: the authorising officer, key contact, and Level 1 user—these roles may be held by one or multiple individuals.
There is no PDF copy of the completed form, so take screenshots if you need a record. Once completed, the authorising officer must submit the form and pay the application fee: £536 for small businesses or £1,436 for large businesses.
You must then email the Home Office within five working days with the signed submission sheet, supporting documents, organisational chart, and any additional representations.
Skilled Worker licence application processing time
The standard processing time for a Skilled Worker sponsor licence application is up to 12 weeks, though it’s often approved sooner if all required information and documents are submitted correctly and there are no follow-up queries. For faster decisions, you can use the optional priority service, which delivers a decision within 10 business days for an additional £500, provided there are no complications.
What happens once the licence is granted?
Once the sponsor licence is granted, the Authorising Officer and Key Contact will receive a confirmation email. The Level 1 user will receive separate communications containing the username and password for the Sponsor Management System (SMS). These login details are confidential and must not be shared, even with legal representatives or colleagues.
You may appoint your legal representative as a Level 1 user to manage sponsorship tasks on your behalf.
If the person you wish to sponsor is already in the UK, you can assign them a Certificate of Sponsorship (CoS) directly—usually one will already be available in the SMS. For applicants outside the UK, you must request a defined CoS, which can take up to 16 weeks but is typically issued sooner. Once granted, you have three months to assign it, after which the applicant can apply for a Skilled Worker visa from their home country or country of residence.
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Roles within the Sponsor Management System
When applying for a sponsor licence, you must nominate key personnel for managing the Sponsor Management System (SMS):
Authorising Officer: A senior employee or office holder, and a British citizen or settled person, who takes overall responsibility for sponsoring migrant workers and is accountable to the Home Office on behalf of the business.
Key Contact: The main point of communication with the Home Office for updates, queries, or scheduled visits. This role can be assigned to your legal representative during the application process.
Level 1 User: Handles daily management of the SMS, including assigning Certificates of Sponsorship, updating records, and reporting changes to the Home Office. This person acts under the authority of the Authorising Officer.
At the time of application, only one person can be assigned to each role. After the licence is granted, additional Level 1 and Level 2 users can be added. Legal representatives can only be appointed as Level 1 Users once the licence is approved.
Skilled Worker sponsor’s duties
As a Skilled Worker sponsor, your primary duty is to help prevent illegal working. This includes maintaining thorough right-to-work checks, keeping accurate and up-to-date records, and fulfilling reporting obligations through the Sponsor Management System.
You must record and, where required, report key changes such as updates to a sponsored worker’s role, salary, absences, change of address, or changes to your business (e.g. ownership or location). A reliable system for compliance and record keeping is essential.
Failure to meet these duties can lead to your licence being downgraded, suspended, or revoked—potentially affecting both your business operations and the immigration status of your sponsored workers.
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Pre-licensing visits
The Home Office may conduct a pre-licensing visit if they need to clarify information provided in the sponsor licence application. The purpose is to assess whether the organisation has strong systems in place to prevent illegal working, follows right-to-work check requirements, and understands its duties around record keeping and reporting via the Sponsor Management System.
They may also verify that the proposed role for the sponsored worker aligns with the appropriate SOC code. Typically, the Authorising Officer will be interviewed, as they hold overall responsibility. The Legal Representative may attend, and the Level 1 User may also be questioned to confirm their understanding of their role.
If the Home Office finds inadequate procedures, questions the legitimacy of the role, or identifies other concerns, the application may be refused with no right to reapply for six months. Any future applications will need to address the reasons for the previous refusal and demonstrate corrective action.
The role of a legal representative in the sponsor licence application
A legal representative plays a key role in supporting your sponsor licence application by ensuring your business is compliant with immigration rules and right-to-work procedures. They will conduct a pre-licensing audit, advising on effective record-keeping systems and setting up reminders to help you stay on top of reporting duties and visa timelines.
They also assess whether the role you intend to sponsor is eligible under the Skilled Worker route and confirm that the proposed salary meets the requirements of the relevant SOC code. A dedicated firm like ZAR Immigration works closely with your team, providing prompt, practical guidance throughout the process.