UK Expansion Worker Sponsor Licence

Section A: UK Expansion Worker Sponsor Licence Overview

If you are looking to expand your overseas business by establishing a branch or subsidiary in the UK, you may need a UK Expansion Worker sponsor licence.

It’s a specific type of sponsor licence that allows overseas entities to sponsor a senior company representative under the UK Expansion Worker visa to oversee the early stages of setting up new operations in the UK, from finding premises to establishing compliance systems

and all other tasks associated with establishing a trading presence.

Once granted, the licence allows the business to sponsor a small number of additional workers to help establish operations.

1. What is the UK Expansion Worker Route?

The UK Expansion Worker route

is one of the five UK Global Business Mobility (GBM) routes, which are designed for overseas businesses seeking either to expand into the UK or to transfer staff temporarily.Unlike other GBM routes that apply to businesses already trading in the UK, the Expansion Worker route is specifically for those that have not yet established a trading presence. It is therefore the route used where a company’s initial UK footprint needs to be created, with the licence acting as the legal mechanism to assign Certificate of Sponsorship (CoS) to qualifying employees.

In practice, this licence is a gateway for overseas organisations to begin building a lawful UK presence. It does not provide a long-term solution for workforce recruitment but is instead a temporary tool to enable the UK branch or subsidiary to reach the stage where it can apply for a broader licence type, such as a Skilled Worker sponsor licence, once active trading is underway.

2. Alternatives to the UK Expansion Worker Sponsor Licence

The UK Expansion Worker sponsor licence is designed for overseas businesses that do not yet have an active UK trading presence. For organisations that do not fit this profile, or for those seeking a longer-term route, alternative options may be more appropriate.

a. Skilled Worker sponsor licence

Once a UK branch or subsidiary has been established and is actively trading, the organisation can apply for a Skilled Worker sponsor licence. This route allows employers to recruit overseas staff into a wide range of permanent roles. Unlike the Expansion Worker route, Skilled Worker sponsorship can lead to settlement for the worker if they meet the long-term eligibility requirements.

b. Senior or Specialist Worker (GBM) route

The Senior or Specialist Worker route, also under the Global Business Mobility framework, is for established multinational businesses transferring staff to a UK branch. This option is only available if the UK entity is already trading. It provides a temporary route for senior staff but does not in itself lead to settlement.

c. Innovator Founder visa

For entrepreneurs and business owners rather than established overseas companies, the Innovator Founder visa offers a pathway to set up and run an innovative business in the UK. This is a separate immigration route requiring endorsement by an approved body, and it can lead to settlement after three years if conditions are met.

d. Other Global Business Mobility routes

Other GBM categories, such as the Service Supplier or Secondment Worker routes, may be appropriate where staff are coming to the UK temporarily under international service agreements or intra-company projects. These are narrower in scope but may be useful alternatives where the Expansion Worker route does not apply.

Section B: Eligibility for a UK Expansion Worker Sponsor Licence

An overseas business must meet strict eligibility criteria before it can be approved for a UK Expansion Worker sponsor licence. The route is designed for companies that are genuine, established and capable of building a trading presence in the UK. It is not open to businesses that already have an active UK trading operation, nor to those unable to demonstrate a credible history of overseas activity.

If your business intends to establish a UK branch or wholly owned subsidiary, you will need an Expansion Worker sponsor licence in order to send senior staff to the UK to oversee the process. The licence allows a company to sponsor one senior manager or specialist employee initially, with scope to sponsor up to four more workers to support the set-up. If your organisation already has a trading presence in the UK, this route is not available, and you should instead consider the Skilled Worker route or the Global Business Mobility: Senior or Specialist Worker route.

1. General requirements

As with all sponsor licence types, applicants must satisfy the Home Office that they are:

• a genuine organisation
• honest, dependable and reliable
• capable of meeting sponsorship duties through robust systems and controls

In assessing honesty and reliability, the Home Office looks beyond the individuals named in the licence application. It will take account of anyone involved in the management of the business and will examine the HR and recruitment practices of the overseas entity to determine whether sponsorship duties can realistically be met.

2. Route-specific requirements

In addition to the general conditions, there are specific criteria that apply to the Expansion Worker route:

• UK footprint: Evidence must be provided of steps taken to establish a presence, such as registering with Companies House or securing premises. Unlike other GBM routes, the business does not need to show it is already trading in the UK.
• Overseas trading presence: The overseas business must be active and trading for at least three years, although limited exceptions can apply in narrowly defined circumstances.
• Credible expansion plans: The company must show it intends and is capable of establishing a UK branch or subsidiary within two years of the licence being granted.

It must also be clear that the role for which the business seeks sponsorship is genuine and meets the required skill and salary thresholds. Roles must be at least RQF Level 6 (graduate level). In most cases, the sponsored worker must earn at least £52,500 a year, or the going rate for the role if higher.

3. Documents for a UK Expansion Worker Sponsor Licence

When applying for a UK Expansion Worker sponsor licence, you must submit a range of supporting documents to evidence both your overseas business operations and your plans for the UK entity. These documents must be provided within five working days of submitting the online application. Failure to do so is a common cause of refusals.

a. Core documentary requirements

The Home Office will expect to see evidence of the business’s overseas trading history, its current financial position, and the initial steps taken to establish a UK presence. Typical documents include:

• Audited accounts for the overseas entity and recent corporate bank statements to confirm trading activity
• Proof of a UK footprint, such as a Companies House registration number, lease agreement or evidence of premises purchase
• Business planning documents showing how the UK expansion will be funded and delivered, with forecasts and financial projections

The documents provided must demonstrate that the UK entity is not a new venture unrelated to the overseas company, but a wholly owned subsidiary or branch of the established business.

b. Route-specific evidence

Because this route is designed only for businesses that have not yet begun trading in the UK, the supporting documents must show that the UK operations are still in their preparatory stage. Examples include:

• Incorporation papers linking the UK entity to the overseas parent
• Contracts or draft agreements for premises or services in the UK
• Evidence of market research or feasibility studies demonstrating the viability of the expansion

The Home Office will assess whether the planned expansion is genuine, commercially credible and within the same line of business as the overseas operations.

Section C: Application Process for a UK Expansion Worker Sponsor Licence

The process of applying for a UK Expansion Worker sponsor licence involves both an online application and the submission of mandatory evidence. The Home Office will also assess the suitability of the individuals appointed to key compliance roles.

1. Submitting the online application

The application begins with the completion of an online form on the Home Office portal. Once this form is submitted, the organisation has five working days to provide the required supporting documents. The Home Office will only begin assessing the application once both steps have been completed.

2. Appointing key personnel

As part of the application, the business must nominate individuals to the three mandatory sponsor management roles:

• Authorising Officer (AO) – the most senior person responsible for the recruitment of migrant workers and overall compliance with sponsorship duties
• Key Contact (KC) – the individual who liaises with the Home Office about the application and licence management
• Level 1 User – the person with day-to-day access to the Sponsorship Management System (SMS), which is used to assign Certificates of Sponsorship and update records

The AO may be based in the UK or, if necessary, a senior employee from the overseas business relocating to oversee the expansion. If the AO is already in the UK, they must also appoint a UK-based Level 1 User and KC. If the AO is coming from overseas, they must initially hold all three roles and later update the licence details once they are in the UK.

3. Sponsorship Management System (SMS)

The SMS is the secure online platform through which sponsor licence holders meet their reporting and record-keeping duties. The Level 1 User is the main operator of this system, though additional Level 2 Users can be appointed later once the licence is active. The AO remains legally responsible for all actions taken on the SMS, even if these are delegated.

4. Home Office assessment

After the application form and documents have been submitted, the Home Office will assess whether the business meets both the general and route-specific requirements. This includes reviewing the background and compliance history of the key personnel, the credibility of the expansion plans, and the adequacy of the HR systems. In some cases, the Home Office may conduct a compliance visit before making a decision.

5. Costs of a UK Expansion Worker Sponsor Licence

The cost of applying for a UK Expansion Worker sponsor licence is aligned with the fee structure for Temporary Worker licences under the Immigration Rules. This applies regardless of the size or charitable status of the organisation.

a. Licence application fee

The current fee for applying for a UK Expansion Worker sponsor licence is £574. This is a flat rate charged to all applicants, whether the organisation is a large multinational or a smaller business.

b. Certificate of Sponsorship (CoS) fees

Once the licence is granted, the business will need to assign a Certificate of Sponsorship to the senior manager or specialist worker leading the expansion. Each CoS costs £55. If additional workers are required, each subsequent CoS is also charged at £55.

c. Other costs and exemptions

Unlike Skilled Worker and other long-term routes, there is no Immigration Skills Charge payable for Expansion Worker CoS. This makes the route more cost-effective in the short term, but employers should note that the visa itself carries separate costs for the individual applicant, including application fees and the Immigration Health Surcharge.

For overseas businesses budgeting for UK expansion, it is important to factor in both the licence and CoS fees, as well as related legal, HR and operational costs of establishing a UK presence.

Section D: After the Licence is Granted

If your application for an expansion worker sponsor licence is successful, your licence will be valid for four years, in common with other sponsored work routes. However, you will not be able to apply to renew your licence for this route at the end of this period.

The purpose of the expansion worker route is to enable genuine overseas businesses to expand to the UK, where the Home Office expects you to have established a full trading presence in the UK within two years from the date your licence was granted. At the end of this two-year period, your CoS allocation will be reduced to zero on this route. This means that you will be unable to sponsor any applications from new workers or extension applications from your existing sponsored workers. However, having established a UK trading presence, you can apply to add alternative work routes to your licence, where your sponsored workers can switch to these routes if they meet the relevant requirements.

Importantly, the Home Office may undertake a compliance visit to ensure that you are meeting the conditions of your expansion worker sponsor licence and if there is a realistic prospect that you will be able to establish a UK trading presence. If they are not satisfied that you are continuing to meet the relevant requirements, your licence may be revoked.

1. Using the licence

Once a UK Expansion Worker sponsor licence is approved, the business can begin assigning Certificates of Sponsorship (CoS) to the individuals tasked with establishing the UK branch or subsidiary. The process for using the licence depends on who has been appointed as Authorising Officer (AO) and whether they are already based in the UK.

The first CoS is typically assigned to the senior manager or specialist employee who will oversee the expansion. If this person is also the nominated AO and Level 1 User, they may need to assign the CoS to themselves before submitting their visa application. Once their visa is approved, they will be able to manage the licence and allocate further CoS as needed.

If the AO is already resident in the UK, the business will usually be granted an A-rating and its full CoS allocation at the outset. This allows the organisation to sponsor as many workers as it genuinely needs to establish the UK entity, up to a maximum of five at any one time. Workers can be replaced within this allocation if someone leaves, but the cap of five cannot be exceeded.

If the AO is still overseas, the licence will be given a provisional rating with an initial CoS allocation of one. The AO must assign this CoS to themselves, apply for entry clearance, and then update the licence once they arrive in the UK. At that point, they can request an increased CoS allocation and appoint additional personnel to the key roles.

2. Compliance duties

Once a UK Expansion Worker sponsor licence has been granted, the Home Office places the business under ongoing scrutiny. Sponsors are required to comply with a strict set of duties designed to ensure that sponsored workers are genuine, the roles meet immigration requirements, and the organisation remains suitable to hold a licence.

The Home Office may conduct visits after the licence has been granted to verify that the business is genuinely working towards establishing a UK presence and complying with its sponsorship duties. If there are concerns that the business is not progressing towards trading or is failing in its compliance obligations, the licence may be downgraded or revoked.

a. Record-keeping duties

The business must retain specified documents for each sponsored worker and for the organisation as a whole. These include copies of passports, right to work evidence, and proof of employment such as contracts and salary details. Documents must be retained for the duration of the sponsorship and made available to the Home Office on request.

b. Reporting duties

All sponsors are required to use the Sponsorship Management System (SMS) to report certain events within strict timescales, usually ten working days. These events include:

• changes to a sponsored worker’s circumstances, such as early termination or changes to their role
• changes to the sponsor organisation, such as new premises, structural changes or changes in ownership
• issues of non-compliance or suspicion that a worker is breaching their visa conditions

c. HR system requirements

The Home Office expects sponsors to have HR and recruitment systems robust enough to prevent abuse of the immigration system. For overseas businesses expanding into the UK, this often means setting up new systems to manage right to work checks, maintain accurate records, and track attendance. Weak or non-existent HR processes are a frequent cause of compliance action.

d. Audits and inspections

The Home Office has wide powers to carry out audits, either announced or unannounced, at the sponsor’s UK premises. Inspections will focus on whether the business is genuinely operating, whether sponsored workers are performing the roles described on their CoS, and whether the organisation’s HR systems are capable of meeting all compliance duties. Failure to meet these standards can lead to the licence being suspended or revoked.

3. Transition to long-term sponsorship

The Expansion Worker licence is temporary. The Home Office expects the business to establish a trading presence within two years. After this point, the licence allocation under the Expansion Worker route will reduce to zero, preventing further sponsorships under this category. To continue sponsoring staff, the organisation must apply to add other routes, such as Skilled Worker, to its licence. Existing sponsored employees may then be able to switch into these longer-term routes if they meet the relevant requirements.

Section E: Common Risks

Not all applications for a UK Expansion Worker sponsor licence are successful, and even after approval licences can be suspended or revoked. The Home Office applies close scrutiny to these applications because of the risks of misuse. Understanding the main pitfalls can help businesses avoid costly delays and disruption.

1. Weak or incomplete evidence

A leading cause of refusal is failing to provide sufficient evidence of overseas trading activity, or of the steps taken to establish a UK footprint. Submitting unaudited accounts, omitting proof of premises, or failing to link the UK entity to the overseas parent are common errors that can undermine credibility.

2. Non-genuine expansion plans

Applications are refused if the Home Office is not satisfied that the business has realistic and credible plans to establish a trading presence in the UK within two years. Expansion plans that appear speculative, underfunded, or not aligned with the overseas entity’s existing operations are unlikely to be approved.

3. Inadequate HR and compliance systems

Even if the business can demonstrate a genuine expansion, the application may fail if HR and recruitment systems are deemed incapable of meeting sponsor duties. For overseas organisations with no existing UK operations, this often means setting up new compliance structures before applying.

4. Compliance breaches after grant

Once a licence is in place, common compliance failures include failing to report changes on time, inadequate record-keeping, or sponsored workers being found to be in roles that do not match their CoS. These breaches expose the sponsor to enforcement action, ranging from suspension to revocation of the licence.

Section F: Summary

The UK Expansion Worker sponsor licence is a highly specific immigration route designed to help overseas businesses establish their first trading presence in the UK. It allows a senior manager or specialist employee to come to the UK to oversee the initial setup, with scope to bring in a small team to support the expansion. The licence comes with defined eligibility requirements, including evidence of overseas trading, credible expansion plans, and the appointment of suitable key personnel.

For employers, the process requires careful preparation of documents, strong HR systems and a clear understanding of ongoing compliance duties. Mistakes in the application or weak evidence often result in refusal, while compliance failures after approval can quickly put the business’s UK expansion at risk. The route is temporary, and organisations must plan from the outset how to transition into longer-term sponsorship options, such as a Skilled Worker licence, once the UK entity is trading.

For overseas businesses committed to a UK presence, the Expansion Worker licence can be the starting point of growth. Success depends on the credibility of the business case, the strength of compliance practices, and forward planning for workforce needs beyond the initial two-year timeframe.

Section G: Need assistance?

DavidsonMorris are UK business immigration specialists. We provide expert guidance to overseas companies establishing operations in the UK, including immigration advice on visa and sponsor licence requirements, as well as support with related employment law matters. Contact us to discuss your plans to set up in the UK.

Section H: FAQs

How much is the UK Expansion Worker sponsor licence fee?

The application fee is £574. This is a flat rate for all organisations, regardless of size or charitable status, because the Expansion Worker route is classified as a Temporary Worker route for sponsor licensing purposes.

What is a UK Expansion Worker visa?

The UK Expansion Worker visa is for senior managers or specialist employees of an overseas business that is setting up a new UK branch or subsidiary. It allows them to come to the UK on a temporary basis to oversee the expansion. The business must not already have an active trading presence in the UK to use this route.

How can I get a sponsor licence in the UK?

To apply for a sponsor licence, an organisation must complete an online application, pay the fee, and submit supporting documents within five working days. The business must meet both the general sponsor requirements and the specific criteria for the chosen route, such as showing a genuine overseas trading history and credible expansion plans for the UK.

Can I sponsor a foreign worker in the UK?

Yes, if you hold the appropriate sponsor licence and meet the relevant immigration requirements. For the Expansion Worker route, this means sponsoring a senior employee or specialist worker to establish a UK presence. For longer-term recruitment needs, employers generally use the Skilled Worker route once the UK entity is actively trading.

Does the Expansion Worker route lead to settlement?

No, time spent on a UK Expansion Worker visa does not count towards settlement. The route is temporary and intended only to support the establishment of a UK trading presence. Once established, the organisation can apply for a Skilled Worker sponsor licence, which does provide a pathway to settlement for eligible employees.

Section I: Glossary

Section J: Additional Resources and Links