ENTITY Sponsor Licence OPQ
SECTION GUIDE
Section O. FAQs
1. Do I need a sponsor licence to employ overseas workers?
Not necessarily.
A sponsor licence is required where an organisation intends to sponsor a worker under an immigration route that requires sponsorship.
Some overseas nationals already have immigration status that allows them to work in the UK without employer sponsorship. Examples can include individuals with indefinite leave to remain, status under the EU Settlement Scheme or permission under another immigration route that permits the proposed employment.
The employer should establish the individual’s right to work and any applicable restrictions before employment begins.
2. How do I know if my business is eligible for a sponsor licence?
The Home Office will assess whether the organisation satisfies the eligibility and suitability requirements of the sponsor licensing regime.
This includes considering whether the organisation is genuine and operating lawfully, whether it has appropriate systems for meeting its sponsor duties, whether suitable key personnel have been appointed and whether there are compliance or suitability concerns that prevent the organisation from being licensed.
3. Does a sponsor licence allow me to sponsor any worker?
No.
The organisation must be licensed for the relevant sponsorship route, and the worker and proposed role must satisfy the requirements applying to that route.
For Skilled Worker sponsorship, for example, requirements apply to matters including the role, occupation and salary.
Holding a sponsor licence does not remove the need to assess each proposed sponsorship individually.
4. What is the difference between a sponsor licence and a Certificate of Sponsorship?
The sponsor licence authorises the organisation to participate in the sponsorship system.
A Certificate of Sponsorship (CoS) is an electronic record assigned by the licensed organisation to an individual worker for a particular sponsored role.
The relationship is:
Home Office → Sponsor Licence → Certificate of Sponsorship → Worker Immigration Application
The licence belongs to the sponsoring organisation. The CoS relates to an individual sponsorship.
5. Does a Certificate of Sponsorship guarantee a visa?
No.
A CoS allows the worker to make an immigration application relying on the sponsorship recorded on it.
The worker must still satisfy the requirements of the relevant immigration route, and the Home Office will decide the application.
6. How long does a sponsor licence last?
Most Worker and Temporary Worker sponsor licences no longer require routine renewal every four years.
The general renewal requirement was removed from 6 April 2024, and most affected licences were extended so that they no longer have a routine expiry date.
The licence can nevertheless be surrendered, revoked or otherwise brought to an end, and organisational changes can affect its continued operation.
7. How long does it take to get a sponsor licence?
Home Office processing times can change.
The time required can also be affected where UKVI requests further information, undertakes additional enquiries or conducts a pre-licence compliance check.
Applicants should check the current published processing position when planning an application.
An eligible applicant may also be able to request the Home Office’s pre-licence priority service, subject to availability, eligibility and payment of the applicable fee.
8. Can a small business get a sponsor licence?
Yes, potentially.
There is no general requirement for an organisation to be a large employer before it can hold a sponsor licence.
A smaller organisation must still satisfy the relevant eligibility and suitability requirements and demonstrate that it can meet its sponsor duties.
The Home Office does not require every sponsor to operate a sophisticated HR software platform. The systems used should, however, be effective for the organisation’s circumstances.
9. Can a new business apply for a sponsor licence?
Potentially, yes.
A limited trading history does not in itself necessarily prevent an organisation from obtaining a sponsor licence.
The organisation must nevertheless satisfy the applicable Home Office requirements and provide the supporting evidence required for its circumstances.
10. What documents are required for a sponsor licence application?
The supporting document requirements are principally set out in Appendix A to the sponsor guidance.
The documents required depend on the type of organisation, its circumstances and the sponsorship routes being requested.
Applicants should therefore identify the Appendix A requirements applying specifically to them rather than relying solely on a generic checklist.
11. Can the Home Office visit before granting a sponsor licence?
Yes.
UKVI can conduct a pre-licence compliance check to assess whether an applicant is capable of meeting its sponsor duties and whether its application reflects the reality of the organisation.
The Home Office can also conduct compliance activity after a licence has been granted.
12. Can the Home Office make an unannounced compliance visit?
Yes.
Sponsor compliance visits can be announced or unannounced.
Licensed sponsors should therefore maintain continuous compliance rather than relying on advance notice of a Home Office inspection.
13. What are the key personnel roles?
The three principal key personnel roles are:
- Authorising Officer;
- Key Contact; and
- Level 1 User.
The same individual can potentially perform more than one role where the applicable requirements are satisfied.
14. What is the Sponsor Management System?
The Sponsor Management System (SMS) is the Home Office online platform through which licensed sponsors administer their licence.
It is used for functions including assigning Certificates of Sponsorship, reporting specified changes and managing aspects of the sponsor licence.
15. What is the difference between a Defined and Undefined CoS?
For Skilled Worker sponsorship, a Defined Certificate of Sponsorship is generally required for a worker applying for entry clearance from outside the UK.
An Undefined Certificate of Sponsorship is used where a Defined CoS is not required, including relevant in-country Skilled Worker applications, and for other routes where the Undefined CoS system applies.
The correct CoS type should be established before assignment.
16. Can I transfer a sponsor licence to another company?
No.
A sponsor licence belongs to the organisation to which it was granted and cannot simply be transferred between legal entities.
Corporate transactions can, however, be subject to specific sponsor provisions affecting licences and sponsored workers.
Changes to ownership, mergers, acquisitions and business transfers should therefore be assessed under the applicable sponsor guidance.
17. What happens to a sponsor licence when a company is sold?
It depends on how the transaction is structured.
A share sale, asset sale, merger or other restructuring can have different sponsorship consequences.
The key issues include whether the licensed legal entity continues to exist, whether ownership changes and whether sponsored workers move to a different employer.
The transaction should therefore be analysed before completion rather than assuming the existing licence will continue unaffected.
18. What happens if a sponsored employee changes job?
The immigration implications depend on the nature of the change.
Some changes can require sponsor reporting, while others can require a new Certificate of Sponsorship and a new immigration application before the worker undertakes the changed role.
Employers should therefore assess proposed changes to sponsored employment before implementation wherever possible.
19. What happens if a sponsored worker’s salary changes?
A salary change should be assessed against the requirements of the worker’s immigration route and the sponsor guidance.
The employer should determine whether:
- the new salary remains compliant;
- the change is permitted;
- a report is required; or
- further immigration action is necessary.
Salary changes should not be treated solely as a payroll matter.
20. Can a sponsor licence be downgraded?
Yes.
An existing A-rated sponsor can in specified circumstances be downgraded to a B-rating.
The sponsor will then generally be required to follow a Home Office action plan and will be subject to restrictions while B-rated.
21. What happens if a sponsor licence is suspended?
Suspension restricts the organisation’s sponsorship activity while the Home Office considers compliance concerns.
The licence has not at that stage been revoked.
The sponsor will ordinarily be notified of the concerns and should respond in accordance with the process and timeframe specified by the Home Office.
Existing sponsored workers do not automatically lose their immigration permission merely because the licence has been suspended.
22. What happens if a sponsor licence is revoked?
Revocation terminates the sponsor licence.
The organisation can no longer use that licence to sponsor workers, and the Home Office can take action affecting workers whose immigration permission depends on sponsorship by the organisation.
The consequences can therefore be significant for both the employer and its sponsored workforce.
23. Do sponsored workers automatically get 60 days if the licence is revoked?
No.
It should not be assumed that every sponsored worker automatically receives exactly 60 days following revocation.
The effect on an individual’s immigration permission depends on their circumstances and any action taken by the Home Office.
Affected workers should establish their individual immigration position.
24. Can a sponsor licence revocation decision be appealed?
There is no general statutory right of appeal against sponsor licence revocation.
Depending on the circumstances, an unlawful Home Office decision may potentially be challenged through judicial review.
The viability of any challenge depends on the facts and the legal basis of the decision.
25. Can an immigration adviser manage our sponsor licence for us?
An external adviser can assist with sponsor licence management and can undertake certain functions where permitted by the sponsor guidance.
However, using an adviser does not transfer the organisation’s sponsor duties to the adviser.
The licensed organisation remains responsible for compliance.
26. Does a sponsor licence replace right to work checks?
No.
Sponsor licensing and the prevention of illegal working regime are separate, although related.
Employers must still carry out the prescribed right to work checks for sponsored workers and comply with any applicable follow-up requirements.
27. Who pays the Immigration Skills Charge?
Where the Immigration Skills Charge applies, it is a sponsor-side charge.
The sponsor must not pass the Immigration Skills Charge on to the sponsored worker.
Other restrictions can also apply to the recovery of sponsorship costs from workers.
28. How often should a sponsor licence be audited?
The Home Office does not prescribe one universal internal audit frequency suitable for every sponsor.
The appropriate frequency will depend on matters such as:
- the number of sponsored workers;
- recruitment activity;
- organisational complexity;
- changes within the business; and
- the sponsor’s compliance risk.
Sponsors should nevertheless maintain continuous compliance and periodically test whether their systems are working in practice.
29. What is the most important sponsor licence compliance principle?
The organisation should be able to demonstrate that the information on which sponsorship is based corresponds with reality.
Section P. Glossary
| Term | Definition |
|---|---|
| A-rating | The standard sponsor licence rating generally given to an organisation when its sponsor licence is granted. An A-rated sponsor can undertake sponsorship activity under the routes covered by its licence, subject to the applicable requirements. |
| Authorising Officer | The senior and competent person responsible for the actions of the organisation’s staff and representatives who use the Sponsor Management System. The Authorising Officer provides senior oversight of the organisation’s sponsorship arrangements. |
| B-rating | A sponsor licence rating that can be imposed on an existing sponsor where specified compliance weaknesses are identified and the applicable Home Office guidance allows the sponsor an opportunity to address them through an action plan. |
| Certificate of Sponsorship (CoS) | An electronic sponsorship record assigned by a licensed sponsor to an eligible worker. It contains information about the worker and sponsored role and provides a reference number used for the worker’s immigration application. A CoS does not itself grant immigration permission. |
| Compliance Check | Home Office activity used to assess whether an organisation meets or continues to meet its sponsor requirements. Compliance checks can take place before or after a sponsor licence is granted and can include announced or unannounced visits. |
| Defined Certificate of Sponsorship | A type of Certificate of Sponsorship generally required for a Skilled Worker applying for entry clearance from outside the UK. |
| Home Office | The UK government department responsible for immigration and the sponsorship system. Sponsor licensing is administered through UK Visas and Immigration. |
| Immigration Rules | The rules setting out the requirements for permission to enter or stay in the UK under the various immigration routes. Sponsored workers must satisfy the requirements of the relevant route in addition to having sponsorship from an appropriately licensed organisation. |
| Immigration Skills Charge (ISC) | A charge payable by sponsors in specified cases when sponsoring workers under the Skilled Worker and Senior or Specialist Worker routes, subject to applicable exemptions. Where payable, the ISC is a sponsor-side cost and must not be passed to the sponsored worker. |
| Key Contact | The individual who acts as the principal point of contact between the sponsoring organisation and the Home Office in relation to the sponsor licence. |
| Key Personnel | The individuals appointed to the principal sponsor management roles. These are the Authorising Officer, Key Contact and Level 1 User. |
| Level 1 User | An authorised user with broad access to the Sponsor Management System who can carry out day-to-day sponsor management functions on behalf of the organisation. |
| Level 2 User | An SMS user with more restricted permissions than a Level 1 User. Level 2 Users can undertake specified functions within the Sponsor Management System. |
| Licensed Sponsor | An organisation that has been granted a sponsor licence by the Home Office and is authorised to sponsor eligible workers under the routes covered by its licence. |
| Pre-Licence Compliance Check | A Home Office compliance check conducted while a sponsor licence application is being considered. UKVI can use the check to assess matters including the organisation’s operations, HR systems and ability to meet its sponsor duties. |
| Right to Work Check | A prescribed check undertaken by an employer to establish an individual’s right to undertake the proposed work in the UK. Holding a sponsor licence and sponsoring a worker do not remove the employer’s separate right to work obligations. |
| Skilled Worker | A sponsored immigration route allowing eligible individuals to work in qualifying jobs for Home Office-approved sponsors, provided the requirements of the Immigration Rules are satisfied. |
| Sponsor | An organisation licensed by the Home Office to sponsor eligible individuals under specified immigration routes. |
| Sponsor Action Plan | A Home Office plan imposed on a sponsor downgraded to a B-rating, specifying compliance improvements the organisation must make within the applicable period. A fee is payable for the action plan. |
| Sponsor Duties | The continuing obligations imposed on licensed sponsors. These include requirements relating to record keeping, worker monitoring, reporting, compliance with immigration and wider UK law and cooperation with the Home Office. |
| Sponsor Guidance | Home Office guidance governing organisations applying for and holding sponsor licences. It addresses matters including applications, key personnel, Certificates of Sponsorship, sponsor duties, compliance and enforcement. |
| Sponsor Licence | Home Office authorisation allowing an eligible organisation to sponsor qualifying workers under specified UK immigration routes. The licence belongs to the licensed organisation and does not itself grant immigration permission to an individual worker. |
| Sponsor Licence Downgrade | Home Office action changing an existing sponsor’s rating from A to B in circumstances where the applicable guidance permits the identified compliance weaknesses to be addressed through an action plan. |
| Sponsor Licence Revocation | Home Office action terminating a sponsor licence. Following revocation, the organisation can no longer use that licence to sponsor workers. |
| Sponsor Licence Suspension | Home Office enforcement action restricting sponsorship activity while concerns about the sponsor are considered. Suspension does not itself terminate the licence. |
| Sponsor Management System (SMS) | The Home Office online system used by licensed sponsors to administer their sponsor licence. Functions include assigning Certificates of Sponsorship and reporting specified worker and organisational changes. |
| Sponsored Worker | A worker whose immigration permission is based on sponsorship from an organisation licensed for the relevant immigration route. |
| Temporary Worker | The collective sponsor licence category covering specified temporary sponsored work routes. The particular requirements depend on the individual Temporary Worker route. |
| TUPE | The Transfer of Undertakings (Protection of Employment) Regulations 2006. TUPE can protect employees when a business or undertaking transfers between employers. TUPE does not itself transfer a sponsor licence, although specific sponsorship provisions can apply to sponsored workers affected by qualifying business transfers. |
| UK Visas and Immigration (UKVI) | The part of the Home Office responsible for administering the UK’s visa and immigration system, including sponsor licensing and sponsor compliance activity. |
| Undefined Certificate of Sponsorship | A Certificate of Sponsorship used where a Defined CoS is not required, including relevant in-country Skilled Worker applications and other sponsored routes to which the Undefined CoS system applies. |
| Worker Routes | The sponsor licence category covering specified sponsored work routes, including Skilled Worker. The requirements differ according to the particular immigration route. |
Section Q. Useful links & resources
| Resource | What it covers |
|---|---|
| Home Office Sponsor Guidance | The Workers and Temporary Workers: guidance for sponsors is the principal Home Office guidance for organisations applying for and managing a sponsor licence. The guidance covers sponsor licence eligibility and suitability, applications, key personnel, the Sponsor Management System, Certificates of Sponsorship, sponsor duties, reporting, compliance checks, licence ratings, suspension, revocation and organisational changes. |
| Sponsor Guidance — Part 1: Apply for a Licence | Part 1 of the sponsor guidance addresses the sponsor licence application process. It covers who can apply, eligibility and suitability, the structure of the sponsor licence, key personnel, application procedures and Home Office consideration of applications. |
| Sponsor Guidance — Part 2: Sponsor a Worker | Part 2 addresses the process and requirements involved when a licensed organisation sponsors an individual worker. It should be considered when assessing proposed sponsorship and assigning Certificates of Sponsorship. Route-specific requirements must also be considered because the requirements for sponsoring a worker vary according to the immigration route being used. |
| Sponsor Guidance — Part 3: Sponsor Duties and Compliance | Part 3 addresses the continuing responsibilities of licensed sponsors. This includes requirements relating to sponsor duties, reporting, record keeping, compliance, Home Office checks and enforcement action. It is therefore particularly relevant to organisations managing an existing sponsor licence. |
| Appendix A — Supporting Documents | Appendix A: supporting documents for sponsor licence applications specifies the documentary evidence required from organisations applying for a sponsor licence. The requirements vary according to the nature and circumstances of the applicant. Organisations should work through the requirements applying specifically to them rather than assuming that every sponsor licence application requires the same evidence. |
| Appendix D — Keeping Documents | Appendix D: keeping documents – guidance for sponsors sets out the sponsor record-keeping requirements. It identifies records that sponsors are required to retain in connection with sponsored workers and sponsorship activity. Appendix D should form part of the organisation’s sponsor compliance and document-retention procedures. |
| Route-Specific Sponsor Guidance | Sponsors should also use the Home Office guidance applying to the particular immigration route under which a worker is being sponsored. Other Worker and Temporary Worker routes have their own requirements. |
| Immigration Rules | The Immigration Rules contain the requirements governing individual immigration routes. For sponsored work, relevant provisions can include Appendix Skilled Worker, appendices governing other sponsored work routes, relevant occupation and salary provisions, validity requirements and other applicable immigration requirements. The sponsor guidance and Immigration Rules perform different functions and should be read together where appropriate. |
| Appendix Skilled Worker | Appendix Skilled Worker to the Immigration Rules contains the requirements applying to individuals seeking permission under the Skilled Worker route. These include requirements concerning sponsorship and the qualifying employment, as well as other eligibility requirements applying to the worker. A valid sponsor licence and Certificate of Sponsorship do not remove the need for the applicant to satisfy these requirements. |
| Skilled Worker Sponsor Guidance | Organisations sponsoring Skilled Workers need to consider the sponsor guidance applicable to the Skilled Worker route alongside the general sponsor guidance. |
| Eligible Occupations and Occupation Codes | Where sponsorship depends on the occupation being eligible, sponsors should use the current Immigration Rules and relevant Home Office materials to identify the appropriate occupation code and applicable requirements. The assessment should be based on the actual role and duties rather than the job title alone. |
| Right to Work Guidance | Employers should also refer to the current Home Office guidance on right to work checks. Sponsor licence compliance and right to work compliance are separate regulatory requirements. A licensed sponsor must still undertake the prescribed right to work check and satisfy the requirements of the prevention of illegal working regime. |
| Immigration Skills Charge | Where the Immigration Skills Charge applies, sponsors should refer to the applicable legislation and current Home Office guidance. The organisation should establish whether the charge applies, whether an exemption is available, the correct amount payable and how the charge interacts with the proposed sponsorship period. The Immigration Skills Charge must not be passed on to the sponsored worker. |
| Home Office Sponsor Fees | Sponsor licence and sponsorship fees can change. Organisations should check the current official Home Office fee information before budgeting for a sponsor licence application, Certificate of Sponsorship assignment, priority services, sponsor action plans and other chargeable sponsor services. The applicable Immigration Skills Charge should be considered separately. |
| Sponsor Management System Guidance | Licensed sponsors should use current Home Office instructions when carrying out functions through the Sponsor Management System. The organisation should ensure that authorised users understand how to undertake relevant SMS actions and that the underlying sponsorship decision has been assessed before information is submitted. |
| GOV.UK | Official sponsor licence guidance, Immigration Rules, right to work guidance, fees and policy updates are published through GOV.UK. Where there is a conflict between historic internal procedures and current Home Office requirements, the organisation should establish the current legal and policy position before acting. |
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The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.