A sponsor licence formerly known as Tier 2 sponsor licence allows UK-based companies to employ skilled workers who are based overseas or within the UK. The applicants can “switch” into the Skilled Worker visa from most other visa types, for example Student, Start-Up, Innovator and more.
To be eligible to apply for a sponsor licence, your organisation must have a UK presence and be operating or trading lawfully in the UK. If you have multiple UK branches you may apply for one licence to cover all your linked UK entities – alternatively, you might apply for a separate licence for each branch, depending on your circumstances.
If you are required to be registered with or inspected/monitored by a statutory body to operate lawfully in the UK, you will need to submit proof that you (and any branches covered by the licence) are registered with the appropriate body. You may also need to supply evidence that you hold the appropriate planning permission or local planning authority consent to run your class of business at your trading address.
The Home Office must be satisfied that you are able to offer genuine employment in a skilled occupation and that you will pay the correct rate of salary, as specified by the Home Office.
As part of your licence application, you are pledging to accept all of the duties associated with being a sponsor licence holder.
Individuals are not normally eligible to be recognised as sponsors, but an exception applies if the individual is a sole trader who wishes to sponsor someone to work in their business.
The fee for a sponsor licence depends on the size and type of organisation. This application fee is payable every time the sponsor renews their licence (every four years). Fees are reviewed annually by the Home Office, who will publish any changed.
Organisations classified as “medium” and “large” are required to pay a sponsor licence fee of £1,476. This fee would apply to all organisations which do not meet the definition of a “small” sponsor.
An organisation would normally qualify as a small sponsor if two of the following apply:
Registered Charities are also considered to be “small” sponsors.
Organisations classified as “small” sponsors are required to pay a sponsor licence fee of £536.
If you have already been granted a ‘Skilled Worker’ sponsor licence (formerly known as Tier 2 sponsor licence) and decide to add a subcategory, there would be no fee. For example, suppose you hold a Skilled Worker licence (formerly Tier 2 General) and would like to start sponsoring migrants under the Senior or Specialist Worker Visa (formerly Tier 2 Intra-Company Transfer). In that case, you’d simply need to apply the Sponsor Management System to add a subcategory – no Home Office fee would apply.
To apply for a sponsor licence (formerly known as Tier 2 sponsor licence), a company is required to submit an application form online along with a minimum of four specified supporting documents as evidence of its trading presence in the UK, in addition to a covering letter to provide background information about the company.
Occasionally, the Home Office may require additional documents such as evidence of the company’s HR processes to assess whether the compliance requirements and sponsorship duties will be met. During an assessment of the licence application, the Home Office may also conduct a compliance visit at the company premises. As a consequence of COVID-19, the Home Office has also started to conduct visits via online means such as Microsoft Teams or Zoom. If you do not have a premises, you can agree on a location to hold the compliance audit.
Our team can conduct a mock audit of your HR procedures prior to your formal application being made to identify any weaknesses and put in place an action plan to rectify them.
You will usually need to submit a minimum of four specified mandatory documents with the Skilled Worker (formerly Tier 2 General) licence application. The required document list is extensive and will depend on whether you are representing a public body, start-up, franchise or SME. Documents may include:
If you are applying for the Senior or Specialist Worker Visa (formerly Intra-Company Transfer) sponsor licence subcategory, you will also be required to submit evidence of common ownership between the company in the UK and the company overseas.
Each type of licence will require different supporting documents to be submitted. Our team can advise on the type you need to apply for and provide a tailored document checklist for you.
Provided the requirements are met and the correct evidence is submitted, it is possible to apply for multiple subcategories of sponsor licence at the same time.
To obtain a sponsor licence, UK employers need to follow the below steps:
The standard processing time for applications is 8 weeks. During the processing time, the Home Office may conduct a compliance visit at your office to ensure you are complying with your sponsorship duties. A priority service request can be made to the Home Office and if accepted, they will request a payment of £500 and aim to process your application within 10 working days.
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