If you are a UK employer in London and need to fill positions with an overseas worker, you will need a Sponsor Licence. Having a Sponsor Licence means that you may legally employ an overseas worker under the Skilled Worker (and other routes) – via UK Visas and Immigration (UKVI) – by issuing them a Certificate of Sponsorship (CoS).
This guide explains what to expect when applying for a Sponsor Licence as well as the requirements for obtaining one, the costs associated with it, and your obligations once you receive one, in addition to other information, such as how to prepare for an audit.
Using a Sponsor Licence, employers may find themselves with more options to help fill vacancies from an overseas applicant, and have access to qualified overseas workers to meet their business’ needs rather than relying on a limited supply of candidates within the UK and Ireland.
A company wanting to engage a non-UK worker must have first applied for (and received) a Sponsor Licence and may only issue a Certificate of Sponsorship after receiving the licence for the purpose of sponsoring an overseas worker.
Examples of UK employers in London that will require a Sponsor Licence:
IT & Software Development
Construction & Engineering
Healthcare & Care Services
Hospitality & Catering
Finance & Professional Services
Education & Training Providers
Small businesses and startups can apply, as long as they meet the UKVI’s eligibility criteria and can demonstrate authentic business activity.
Sponsor Licence Criteria for Employers in the UK
To be eligible for a sponsor licence in London, an employer must meet a number of important criteria provided by UKVI:
The employer must be lawfully conducting business in the UK (e.g., not closed, in the process of liquidation, etc.)
The employer must have a physical or registered presence in the UK
The job to be sponsored must be real and be eligible for sponsorship
The employer must have sufficient HR and record-keeping systems in place and also have not previously breached UK or immigration employment.
UKVI also requires that an employer assigns key roles within the organisation:
– An Authorising Officer
– A Key Point of Contact
– A Level 1 User responsible for managing sponsorship.
Documents Required for Your Licence Application
The employers submitting valid documents will result in a reduced number of delays or refusals. Examples of documents include:
– Proof of registration (Companies House documents)
– The employers’ liability insurance
– Proof that the company has registered for PAYE and HMRC
– UK Business Bank Statements
– Lease / utility bill to show location of your business in London
– An organisational chart
UKVI will request a variety of documents depending on your business type.
How do I apply for a license to be a Sponsor (Sponsorship Licence Application Process)
To apply for a sponsorship licence, there are a number of steps that need to be completed:
1. Online application using UKVI portal to complete your online sponsor licence application.
2. Document submission – Uploading/sending any required documents to UKVI (UK Visas and Immigration) by strict deadlines.
3. Review of your application by UKVI, assessing the credibility of both your business and its HR systems against UKVI’s ‘sponsorship requirements’.
4. Compliance visit by UKVI, which may be carried out before or after the granting of a sponsorship licence.
A standard processing time for applications is approximately 8 weeks (this does not include the time taken for you to submit your supporting documents), although priority premium services may be available in certain circumstances.
Sponsorship License Duty Fees 2026
The fee for a sponsorship licence is dependent on the size of your company:
– Small Business or Charity Company: £536
– Medium or Large Business: £1,476
You will also incur additional costs later as a result of using an immigration skill charge and incurring a visa application fee for your sponsored employee.
Ongoing Duties of Compliance (Once Your Sponsorship Licence Has Been Granted)
Once your sponsorship licence has been granted, you (the sponsor) will have ongoing compliance obligations. These obligations include the responsibility to:
• Maintain accurate records of sponsored employees•
• Report any changes to the employment status or business structure of any sponsored employee or sponsor company
• Monitor attendance and job roles of sponsored employees
• Notify UKVI of any non-compliant activity or change in circumstances via the sponsor management system (SMS)
Failure to meet these ongoing obligations can result in you (the sponsor) being downgraded, suspended or revoked your sponsorship licence, which will have a substantial negative impact on the operation of your business.
Reasons for Sponsor Licence Refusal
Due to the high number of sponsor licence refusals received by many employers in London, many will face refusals due to a lack of attention to detail, including:
– Ineffective HR Management Systems
– Incomplete Document Submission
– Non-Genuine Occupation
– Lack of Understanding As To What Compliance Duties Are
Professional assistance decreases the risk of refusal and increases the long-term sustainability of a sponsor licence.
Reasons for Sponsor Licences to be Important
With London being one of the major business centres of the world, there is increased competition for skilled workers. A sponsor licence will allow employers in London to do the following:
– Access International Talent
– Fill Critical Skills Gaps
– Enhance Workforce Security
– Facilitate Business Expansion in a Confident Manner
As UK immigration continues to evolve through 2026, obtaining a compliant sponsor licence is vital for employers with an eye toward the future and hiring point flexibility.
Conclusion
For employers looking to expand or stay competitive, obtaining a UK Sponsor Licence in London will provide you with the ability to maintain a successful placement programme. In addition, by providing the proper documentation, implementing a significant compliance programme and preparing thoroughly, success is possible!
If you’re planning on hiring employees from other countries in 2026, applying for a sponsor licence now will allow your business to be prepared to meet the recruitment needs of tomorrow and to stay in full compliance with the UKVI.