Sponsorship Licence for UK Employers – How to Hire Overseas Staff (2025 Guide)

The UK labour market continues to evolve, and employers in sectors ranging from healthcare to technology are increasingly looking overseas to fill essential roles. Since Brexit, hiring international workers is no longer automatic — businesses must hold a Sponsor Licence issued by the Home Office.

In this 2025 guide, the specialists at AHJ Immigration explain everything UK employers need to know about obtaining and maintaining a Sponsor Licence. Whether you manage a start-up, a recruitment agency, or a national company, understanding your duties as a licensed sponsor is vital to bringing skilled employees legally to the UK.

What Is a Sponsor Licence?

A Sponsor Licence authorises a UK employer to sponsor non-UK or non-Irish nationals under the Skilled Worker Visa or other eligible work routes. It allows the business to:

• Assign a Certificate of Sponsorship (CoS) to each foreign worker.
• Confirm that the job and salary meet Home Office criteria.
• Manage ongoing compliance duties through the Sponsor Management System (SMS).

Without a licence, employers cannot hire or continue employing foreign nationals under most work visa routes.

Who Needs a Sponsor Licence?

You will need a licence if you intend to employ someone who:

• Is not a British or Irish citizen, and
• Does not already hold immigration permission allowing work in the UK.

Common examples include hiring candidates currently overseas or recruiting graduates on Graduate Visas who wish to switch into long-term Skilled Worker status.

Types of Sponsor Licence

The Home Office currently issues two main categories:

Many employers apply only for a Worker Licence, which covers most permanent recruitment.

Eligibility Requirements for Employers

To qualify, your organisation must:

• Be legally established in the UK (registered with Companies House or HMRC).
• Demonstrate genuine employment need for each sponsored role.
• Have robust HR systems to track employee attendance, record-keeping, and reporting.
• Have no recent immigration or criminal offences involving key personnel.

Your business will also nominate key management roles:

• Authorising Officer – senior person responsible for compliance.
• Key Contact – main Home Office liaison.
• Level 1 User – operates the Sponsor Management System (SMS).

Documents Required for the Application

Most employers must submit at least four supporting documents, such as:

• VAT registration certificate or HMRC registration;
• Recent bank statement or audited accounts;
• Evidence of trading premises (e.g. lease agreement or utility bill);
• PAYE reference number and proof of insurance;
• Any relevant accreditations or industry registration.

All documents must be uploaded via the Home Office portal within five working days of submitting the online application.

Application Process – Step by Step

1. Complete the online Sponsor Licence form on GOV.UK.
2. Pay the application fee:
   • Small or charitable organisations: £536
   • Medium or large organisations: £1,476
3. Upload supporting documents within five days.
4. Prepare for a possible compliance visit – the Home Office may inspect HR systems.
5. Receive decision within 8 weeks (standard) or 10 working days (priority service +£500).

After You Get Your Licence

Once approved, you will receive:

• A licence rating (A or B).
• Access to the Sponsor Management System (SMS).
• Permission to issue Certificates of Sponsorship (CoS) to eligible workers.

Licences are valid for four years and must be renewed before expiry.

Your Ongoing Compliance Duties

Holding a licence is an ongoing responsibility. Employers must:

• Report employee absences, resignations, or changes within 10 working days.
• Keep copies of passports, BRPs or eVisas, and right-to-work checks.
• Ensure each role still meets the appropriate salary and skill level.
• Renew the licence and update contact details promptly.

Failing to comply can lead to downgrading to a B rating, suspension, or revocation — and fines of up to £20,000 per illegal worker.

Certificate of Sponsorship (CoS) Explained

A Certificate of Sponsorship is a unique reference number assigned to each employee. It confirms that the job offer is genuine and meets Home Office requirements.

Two types:

• Defined CoS – for workers applying from outside the UK.
• Undefined CoS – for in-country switches or extensions.

Each CoS must include salary, SOC code, and start date and be assigned within three months of approval.

Renewing and Managing Your Licence

Licences must be renewed every four years. Renewal fees are the same as initial application fees.
You should also:

• Regularly audit records to maintain an A-rating.
• Train HR staff to use the SMS system confidently.
• Conduct annual internal compliance checks.

Common Mistakes to Avoid

1. Assigning a CoS for a non-eligible role.
2. Missing reporting deadlines after a worker leaves.
3. Paying below the Home Office salary threshold (£29,000 base in 2025).
4. Allowing licence expiry without renewal.
5. Poor record-keeping during compliance audits.

Benefits of Holding a Sponsor Licence

• Access to global talent across engineering, IT, care, and finance.
• Competitive edge in hard-to-fill roles.
• Ability to sponsor existing employees transitioning from Graduate Visas.
• Enhanced credibility with partners and clients.

How AHJ Immigration Can Help Employers

At AHJ Immigration, we guide UK employers through the entire Sponsor Licence journey:

• Assess eligibility and documentation.
• Prepare applications and liaise with the Home Office.
• Conduct mock compliance audits.
• Train HR teams on the Sponsor Management System.
• Manage licence renewals and CoS allocations.

We simplify complex immigration rules so you can focus on hiring the right people.

Why Choose AHJ Immigration

• OISC-regulated advisers with Skilled Worker and business immigration expertise.
• Fixed-fee and transparent services — no hidden costs.
• Free 30-Minute Consultation to review your eligibility.
• 1-Hour Paid Consultation for in-depth strategy (deductible if you continue).

📞 Call 0121 828 2224 or Book Your Consultation Online today to start your Sponsor Licence application.

Disclaimer

Immigration rules, fees, and salary thresholds are subject to change. Information is accurate as of October 2025 and based on current Home Office Sponsor Licence guidance.

FAQs

1. How long does a Sponsor Licence take to be approved?
Usually around 8 weeks. Priority processing (£500 extra) can reduce this to 10 working days if slots are available.

2. How much does a Sponsor Licence cost?
£536 for small or charitable organisations and £1,476 for medium or large businesses (2025 rates).

3. Can I sponsor workers on a part-time basis?
Yes, provided their salary meets the minimum hourly rate and threshold set by the Home Office.

4. Can Graduate Visa holders switch to a Skilled Worker Visa?
Yes — they must receive a valid CoS from a licensed employer and meet salary requirements.

5. Do I need a lawyer to apply for a Sponsor Licence?
Not legally, but professional guidance reduces delays and helps avoid costly refusals. AHJ Immigration can handle the entire process for you.