For UK employers struggling with ongoing skills shortages, hiring from abroad has become more important than ever. But before you can legally employ talent from overseas, you’ll need to hold a Skilled Worker Sponsor Licence.
Getting this licence isn’t just about filling in a few forms — it’s about showing the Home Office that your organisation is genuine, trustworthy, and capable of managing sponsored workers correctly. Mistakes can cause serious setbacks, from delays to outright refusals and loss of your application fee.
In this guide, we’ll walk you through everything — from what the licence actually is, who qualifies, what documents you need, and how to apply — so you can approach your application with confidence.
What Is a Skilled Worker Sponsor Licence and Why Do You Need It?
The Skilled Worker visa (previously known as Tier 2 General) remains the main immigration route for overseas professionals coming to work in the UK.
To hire someone under this visa, your organisation must first be approved as a sponsor by the Home Office. That’s where the sponsor licence comes in. It’s the official permission that allows you to issue Certificates of Sponsorship (CoS) to foreign workers.
Once you have the licence, you can assign a CoS to a candidate, confirming the job is genuine and meets visa requirements. The worker then uses that certificate to apply for their Skilled Worker visa.
Whether you’re a private business, public body, charity, or PLC, if you plan to employ non-UK workers under the Skilled Worker route, you’ll need a sponsor licence.
What Are the Key Requirements for a Skilled Worker Sponsor Licence?
When you apply, the Home Office will assess your organisation against several key criteria:
1. Are you a genuine UK organisation?
You’ll need to prove that your business is legally operating in the UK. The required evidence is listed under Appendix A of the Sponsor Guidance and usually includes registration documents, VAT certificates, and proof of trading.
2. Is the job you’re offering genuine?
The position must be a real vacancy that meets the skill and salary thresholds set by UKVI. It can’t be created just to help someone secure a visa.
3. Do you have strong HR systems?
You’ll need robust HR and recruitment procedures to meet your ongoing sponsor duties — things like tracking attendance, reporting changes, and keeping accurate records.
4. Is your organisation trustworthy?
The Home Office will conduct background checks on key staff responsible for managing your licence to ensure there are no red flags such as past non-compliance or criminal offences.
You’ll also need to send at least four supporting documents from Appendix A to evidence your eligibility. These vary depending on your business type, so review them carefully before applying.
And don’t forget a company organisation chart — it helps UKVI understand your internal structure.
How Does the Role and the Worker Qualify Under the Skilled Worker Route?
To sponsor someone, both the job role and the individual must meet eligibility rules.
a) The role must be eligible for sponsorship
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It must meet the required RQF skill level.
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It should match a valid Standard Occupation Code (SOC).
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The salary must meet or exceed the minimum threshold for that occupation.
b) The worker must qualify for the visa
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They must meet the English language requirement.
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They need a valid Certificate of Sponsorship from your organisation.
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They must have enough personal savings upon arrival in the UK.
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They must not have any immigration history that would lead to refusal.
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The salary offered must align with the required rate for their job.
What Makes an Organisation “Suitable” to Hold a Sponsor Licence?
Beyond eligibility, the Home Office also checks whether your organisation is suitable to hold a sponsor licence. Essentially, they want to know if they can trust you to follow the rules long-term.
1. Do you have strong HR systems?
You must show you can track and report sponsored employees effectively. That includes keeping up-to-date records, verifying right-to-work documents, and promptly reporting any changes — like a worker leaving early or moving to another site — within 10 working days.
2. Can you handle a compliance inspection?
UKVI may carry out unannounced site visits either before or after granting your licence. During these inspections, they’ll check your HR processes, meet with your Authorising Officer, and may even speak to your sponsored workers.
3. Are your job vacancies genuine?
You’ll need to prove that the vacancies you’re offering are real and necessary, meeting the required skill and salary levels.
4. Are your key people fit and proper?
The Home Office will also check for any history of non-compliance, criminal records, or issues involving your key personnel.
5. Do you have your supporting documents ready?
Once you submit your application online, you only have five working days to send all supporting documents to UKVI. Having everything prepared in advance can save you a lot of stress.
Documents should be scanned clearly (PDF preferred) and, if not in English, provided with a certified translation.
How Do You Apply for a Skilled Worker Sponsor Licence?
If you’re confident that you meet all criteria and your documents are ready, here’s how the process works step by step:
| Stage | Description | Estimated Timeframe |
|---|---|---|
| Internal preparation | Conduct an HR audit, fix compliance gaps, choose key personnel, and prepare vacancy details. | 4–12 weeks |
| Document collation | Gather all required Appendix A documents and certified translations. | 1–4 weeks |
| Online application | Complete the sponsor licence form on the Sponsor Management System (SMS), pay the fee, and generate your submission sheet. | 1–2 days |
| Submit documents | Email your supporting evidence to UKVI within five working days. | 5 working days |
| UKVI assessment | UKVI reviews your eligibility and may request more information or schedule a compliance visit. | Up to 8 weeks |
| Decision | Licence granted (added to the Sponsor Register) or refused. | Immediate |
What’s the Process for Completing the Online Application?
You’ll apply via the Sponsor Management System (SMS) on the Home Office website. Once registered, you’ll receive login details — keep them safe, as they won’t be reissued.
When filling in the form, save your progress frequently, and print the submission sheet at the end. After paying the application fee, you must email your documents to UKVI within five working days.
Who Should Be Your Key Personnel?
You’ll need to appoint people to manage your sponsor licence and communications with UKVI.
| Role | Responsibilities | Access Level |
|---|---|---|
| Authorising Officer | The senior person responsible for compliance and overall recruitment of migrant workers. | Full oversight (not an SMS user by default) |
| Key Contact | Main point of contact with UKVI, handling official communications. | No SMS access unless also a Level 1/2 user |
| Level 1 User | Manages day-to-day licence tasks like assigning CoS and updating records. | Full SMS access |
| Level 2 User | Has limited access for simpler tasks like assigning CoS. | Restricted SMS access |
All key personnel must be based in the UK and must always be in place. If one leaves or relocates, you must update UKVI promptly.
What Are Your Responsibilities After Getting a Licence?
Once your licence is granted, compliance becomes part of your daily HR operations. Failure to meet your sponsor duties could result in your licence being downgraded, suspended, or revoked, affecting your ability to employ sponsored workers.
Your key duties include:
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Record keeping: Maintain copies of employees’ right-to-work checks, contracts, and up-to-date contact details.
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Monitoring and reporting: Notify UKVI within 10 days if a worker doesn’t start, resigns, or breaches visa conditions.
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Absence tracking: Keep records of authorised and unauthorised absences.
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Updating details: Report company changes such as address updates, mergers, or new branches.
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Maintaining key personnel: Always ensure your Authorising Officer and Level 1 users are active.
What Happens During a Pre-Licence Inspection?
After you submit your application, home office may decide to inspect your organisation — either physically or digitally.
They’ll review your HR systems, recruitment policies, and compliance procedures. They’ll also assess whether your vacancies are genuine and meet the required skill level.
If inspectors find gaps in compliance or evidence of poor record-keeping, your licence application could be refused. Preparing for a potential audit before applying is the best way to avoid this.
How Long Does the Sponsor Licence Application Take?
Standard processing times are around 8 weeks, though the Home Office also offers a priority service for £500. This fast-track option can reduce waiting time significantly, but slots are very limited and allocated on a first-come, first-served basis.
What If Your Sponsor Licence Is Granted or Refused?
If successful, your organisation will appear on the Register of Licensed Sponsors and you can immediately begin assigning Certificates of Sponsorship.
If your application is refused, Home Office will explain why. While there’s no formal right of appeal, you can reapply once you’ve addressed the reasons for refusal. Sometimes a short cooling-off period may apply.
How Much Does a Skilled Worker Sponsor Licence Cost?
There are several fees you need to plan for:
1. Sponsor Licence Application Fee
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Small company or charitable sponsor: £574
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Medium or large company: £1,579
You must pay this fee when submitting your online application. It’s non-refundable, even if the application is refused.
To qualify as a small sponsor, your organisation must meet at least two of the following:
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Turnover ≤ £15 million
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Assets ≤ £7.5 million
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50 or fewer employees
2. Immigration Skills Charge (ISC)
This fee is payable each time you assign a CoS. It depends on your company size and the duration of employment.
| Charge Period | Pre-16 Dec 2025 (Medium/Large) | Pre-16 Dec 2025 (Small/Charitable) | From 16 Dec 2025 (Medium/Large) | From 16 Dec 2025 (Small/Charitable) |
|---|---|---|---|---|
| First 12 months | £1,000 | £364 | £1,320 | £480 |
| Each extra 6 months | £500 | £182 | £660 | £240 |
These new rates apply to Certificates assigned on or after 16 December 2025.
3. Certificate of Sponsorship Fee
Each CoS costs £525, payable through the SMS at the time of assignment. Employers cannot pass this cost on to the worker.
4. Recouping Costs — What’s Allowed and What’s Not?
You cannot reclaim or deduct from the worker any of the following:
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Licence application or extension fees
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CoS or ISC fees
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Any admin or priority-service fees
Doing so can lead to licence revocation. However, you can agree to recover legitimate employee costs, such as their visa fee or Immigration Health Surcharge, as long as repayment terms are fair, transparent, and don’t reduce pay below the legal threshold.
What Are the Most Common Sponsor Licence Application Mistakes?
Many employers make avoidable errors during the process. Here are the main pitfalls to watch out for:
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Missing documents: If required evidence isn’t sent within five working days, your application may be rejected as invalid.
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Weak HR systems: Poor record-keeping and monitoring practices can raise red flags during audits.
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Unprepared for inspection: Home Office visits can happen at any time — be ready before you apply.
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Incomplete Appendix A compliance: Every document listed in Appendix A is vital. Missing or incorrect files cause delays or refusals.
Conducting a mock internal audit before applying helps identify issues early and strengthens your application.
What Should Employers Keep in Mind Long-Term?
A Skilled Worker Sponsor Licence isn’t just a one-off approval — it’s an ongoing commitment. With licences now granted without a fixed expiry date, compliance is a continuous responsibility.
Make sponsor duties part of your daily HR routine to protect your licence, safeguard your sponsored workers’ visas, and keep your business ready for Home Office checks at any time.
Need Assistance with Your Sponsor Licence Application?
Applying for a Skilled Worker Sponsor Licence can be complex, but you don’t have to navigate it alone.
At Lawsentis, our immigration experts guide UK employers through every stage — from assessing eligibility and preparing documents to managing compliance and post-licence duties.
If you’re ready to hire global talent or want to make sure your organisation meets all sponsor licence requirements, contact Lawsentis today for expert guidance and support.