Sponsor Licence UK: The Complete Employer Guide

A UK Sponsor Licence allows British businesses and overseas entities operating in the United Kingdom to employ non-settled workers, including European Economic Area (EEA) nationals arriving post-Brexit and international professionals requiring immigration permission. Issued by UK Visas and Immigration (UKVI), the licence confirms that an organisation has been vetted, possesses robust human resources systems, and is authorised to assign Certificates of Sponsorship (CoS). Holding a licence carries continuous legal obligations, requiring strict adherence to reporting, record-keeping, and general immigration compliance duties under the Immigration Rules.

Key facts

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What is a Sponsor Licence and who needs one?

A Sponsor Licence is an official authorisation granted by the Home Office permitting a UK-based organisation to hire non-settled workers. Following the end of free movement between the UK and the European Union, the requirement for sponsorship encompasses any overseas national who does not hold settled status, pre-settled status, indefinite leave to remain, or an alternative unsponsored immigration status (such as a Graduate visa, Youth Mobility Scheme visa, or Family visa).

Understanding the necessity of obtaining a licence is critical for workforce planning. Exploring how Navigating the Changing Landscape: EU Citizens and the UK Labour Market Post-Brexit impacts corporate recruitment strategy clarifies why organisations must secure Home Office approval before issuing formal employment offers to international candidates.

The Sponsorship System Structure

The points-based immigration system operates on a principle of shared responsibility. The Home Office grants trusted organisations the legal capacity to recruit non-UK talent; in return, sponsors act as gatekeepers to ensure candidates possess the skills, qualifications, and English language proficiency required for their roles.

A Sponsor Licence can cover multiple immigration tiers and sub-categories, broadly split into two overarching streams:

1. Worker Routes (Long-Term Employment):

   • Skilled Worker: The primary route for hiring qualified international workers into eligible roles defined by the Standard Occupational Classification (SOC) system. Detailed operational steps are outlined in our guide on the UK Skilled Worker Visa: Your Path to Working in the UK.
   • Global Business Mobility (Senior or Specialist Worker): Designed for multinational organisations transferring established, senior, or highly specialised staff from an overseas branch to a linked UK entity.
   • Scale-up Worker: For fast-growing businesses that meet specific turnover or employment growth criteria over a three-year assessment window.
   • Minister of Religion and International Sportsperson: Specialist routes for faith-based organisations and professional sports entities.

2. Temporary Worker Routes (Short-Term Engagements):

   • Global Business Mobility (Service Supplier, Secondment Worker, Expansion Worker): Facilitating international trade agreements, high-value contract delivery, or initial market entry.
   • Creative Worker: Short-term engagements within the creative, performing arts, or entertainment sectors.
   • Charity Worker: Unpaid voluntary work supporting registered charitable objectives.
   • Government Authorised Exchange (GAE): Approved cultural exchanges, training programmes, and research initiatives.

Should your company obtain a Sponsor Licence?

Organisations facing domestic recruitment deficits in technical, healthcare, engineering, corporate, or executive roles often require international search parameters. Assessing whether to apply involves reviewing:

• Current and Future Talent Needs: The volume of overseas recruitment anticipated over the next 12 to 36 months.
• Cost Absorption Capacity: The financial capability to cover statutory licence fees, Certificate of Sponsorship allocations, and the Immigration Skills Charge.
• Internal HR Capacity: The infrastructure to maintain tracking, absence logging, right-to-work compliance, and continuous reporting via the Sponsorship Management System (SMS).

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Eligibility criteria and qualifying business requirements

To secure approval, an organisation must satisfy UKVI that it is a genuine, operating commercial or non-profit entity with legitimate recruitment requirements and dependable internal administrative mechanisms.

+-------------------------------------------------------------------------+
|                       SPONSOR LICENCE ELIGIBILITY                       |
+-------------------------------------------------------------------------+
|                                                                         |
|  1. Genuine Trading Presence (UK registered, physical trading footprint)|
|                                    |                                    |
|  2. Genuine Vacancies (Meets SOC code, skill level, and salary rules)   |
|                                    |                                    |
|  3. Robust HR Systems (Tracks attendance, Right to Work, visa expiry)   |
|                                    |                                    |
|  4. Key Personnel (Authorising Officer, Key Contact, Level 1 User)      |
|                                    |                                    |
|  5. Unspent Convictions & Insolvency Checks (Suitability criteria met)  |
|                                                                         |
+-------------------------------------------------------------------------+

1. Genuine Trading Footprint in the UK

The organisation must have an active trading presence in the UK. Operating purely as a "shell" company or virtual mailbox does not satisfy Home Office scrutiny. UKVI will assess whether the applicant has:

• An active UK corporate bank account with an FCA-regulated financial institution.
• Commercial premises, lease agreements, or verified operational trading addresses.
• Relevant registrations with statutory bodies (e.g., Companies House, HM Revenue & Customs for PAYE and VAT).

2. The Genuine Vacancy Requirement

UKVI explicitly reviews whether the employment on offer represents a genuine vacancy. Under Home Office guidance, a vacancy is not genuine if it:

• Does not require the skills, knowledge, or experience stated.
• Has been artificially constructed or tailored specifically to facilitate an individual's migration rather than fulfil an authentic business requirement.
• Involves duties that do not align with the assigned Standard Occupational Classification (SOC) code.
• Involves contracting out sponsored staff to third parties to undertake routine or ongoing ongoing operational duties under the third party's direct management.

3. HR and Compliance Infrastructure

Applicants must demonstrate that their internal policies, record-keeping, and human resource structures can meet the administrative burden of sponsorship. Employers should ensure their personnel policies align with our UK Employment Law for Sponsors: Compliance Guide to avoid systemic operational failings during Home Office audits.

Inspectors evaluate four key areas during pre-licence or post-licence visits:

• Right to Work Verification: Systems for carrying out statutory document checks or share code verifications before employment begins and at visa expiry dates.
• Absence and Attendance Tracking: Processes to identify, log, and report any unauthorised, consecutive absences exceeding 10 working days.
• Contact Information Maintenance: Methods for keeping up-to-date residential addresses, personal phone numbers, and emergency contact details for sponsored workers.
• Professional Accreditations: Monitoring procedures for compulsory registrations, licenses, or qualifications required by UK regulatory authorities (e.g., GMC, SRA, NMC).

4. Appointment of Key Personnel

Every sponsor must appoint nominated individuals to act as Key Personnel within the business. These roles carry statutory responsibilities:

• Authorising Officer (AO): The most senior paid official or office-holder responsible for recruitment, HR conduct, and ensuring all sponsor duties are fulfilled. The AO bears ultimate legal accountability for the licence.
• Key Contact: The primary liaison between UKVI and the business.
• Level 1 User: The administrative operator responsible for daily management of the online Sponsorship Management System (SMS), including assigning Certificates of Sponsorship and reporting employee changes.
• Level 2 User (Optional): Users with restricted permissions on the SMS, limited to drafting and reporting tasks.

Suitability and Eligibility Restrictions for Key Personnel:

• Must usually be permanently based in the UK.
• Must not have unspent criminal convictions for immigration offences or specific financial crimes (fraud, money laundering, sanctions evasion).
• Must not have been an Authorising Officer or Key Personnel at an organisation whose licence was revoked within the preceding 12 months.
• Must be direct employees, directors, or statutory office holders, although a regulated legal representative may act as a Key Contact or Level 1 User alongside internal staff.

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Mandatory documents and Appendix A requirements

Applications are made online, but applicants must validate their submission by providing specific supporting evidentiary documentation within 5 working days of submitting the digital form.

Under Sponsor guidance Appendix A: supporting documents for sponsor applications, employers must provide at least 4 distinct qualifying documents, unless they are an exempt entity (such as a public sector body or a company listed on the London Stock Exchange Main Market).

Core Qualifying Evidentiary Options (Appendix A Table Breakdown)

Document Submission Best Practices

1. Digital Submission Format: Supporting documents must be scanned and emailed to the designated UKVI verification inbox in PDF format within 5 working days of the online application fee payment.
2. Submission Sheet Validation: The submission sheet generated at the end of the online form must be signed and dated by the nominated Authorising Officer using an acceptable signature format (wet-ink signature or verified digital cryptographic signature; typed font names are rejected).
3. Verification Integrity: UKVI will cross-check all submitted documents against issuing authorities (e.g., HMRC, land registries, commercial banks, or insurance underwriters). Supplying unverified, altered, or fraudulent documentation triggers a mandatory 5-year cooling-off period.

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The step-by-step application process

Securing a Sponsor Licence requires careful preparation across five sequential phases. For an end-to-end framework on workforce integration, review our guide on UK Visa Sponsorship: Employer & Applicant Guide.

Phase 1: Readiness Assessment & Key Personnel Appointment
   │
   ▼
Phase 2: Online Application Submission & Fee Payment
   │
   ▼
Phase 3: Digital Submission of Appendix A Evidence (Within 5 Working Days)
   │
   ▼
Phase 4: Home Office Compliance Vetting & Pre-Licence Audits
   │
   ▼
Phase 5: Decision, SMS Activation & Multi-Factor Setup

Phase 1: Internal Readiness and Personnel Selection

• Identify the specific licence categories required (e.g., Skilled Worker, Senior or Specialist Worker).
• Audit current HR files, right-to-work procedures, and reporting systems to ensure compliance with Home Office standards.
• Formally designate internal personnel for the Authorising Officer, Key Contact, and Level 1 User roles.

Phase 2: Online Application Lodgement

• Complete the online application on the GOV.UK portal, providing operational details, turnover, trading history, and Key Personnel details.
• Define projected Certificate of Sponsorship requirements for the initial 12-month period, categorised into Defined CoS (for out-of-country Skilled Worker applicants) and Undefined CoS (for in-country switchers and extensions).
• Pay the statutory application fee (£574 for small/charitable sponsors; £1,576 for medium/large sponsors).

Phase 3: Compiling and Transmitting Appendix A Evidence

• Collate the minimum 4 required supporting documents alongside the signed submission sheet.
• Draft a detailed cover letter explaining the nature of the business, operational model, trading hours, rationale for seeking a licence, and details of any initial prospective vacancies.
• Email the submission packet to UKVI within the strict 5-working-day window.

Phase 4: Pre-Licence Compliance Audit (If Applicable)

• UKVI may conduct an unannounced or announced pre-licence site visit or video audit.
• Compliance officers will inspect premises, review HR systems, and interview the Authorising Officer and proposed Level 1 User to evaluate their knowledge of statutory sponsor duties.

Phase 5: Notification, SMS Activation, and Multi-Factor Authentication

• Upon approval, UKVI issues a grant letter containing the organisation's Sponsor Licence Number (SLN) and assigns an 'A-rating'.
• The Authorising Officer and Level 1 User receive their login credentials for the online Sponsorship Management System (SMS).
• Multi-Factor Authentication (MFA): In line with recent updates detailed in the Home Office's SMS Manual 13 (Multi-factor authentication for UK visa sponsors), all SMS users must configure a registered authenticator application on an approved device. MFA is now mandatory across all SMS logins to ensure data security.

+--------------------------------------------------------------------------+
|                  SMS ACCESS: MULTI-FACTOR AUTHENTICATION                 |
+--------------------------------------------------------------------------+
|                                                                          |
| 1. User enters SMS User ID and Password                                  |
|                                                                          |
| 2. System prompts for a Time-based One-Time Password (TOTP)              |
|                                                                          |
| 3. User generates code using an approved authenticator mobile app       |
|                                                                          |
| 4. Successful identity verification grants access to the portal          |
|                                                                          |
+--------------------------------------------------------------------------+

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Sponsor Licence costs, fees, and processing timelines

Understanding the financial commitments associated with obtaining and maintaining a licence is essential for commercial budgeting.

Initial Application and Priority Costs

The initial application fee is determined by statutory business size criteria under the Companies Act 2006.

An organisation qualifies as a small business if it meets at least two of the following conditions:

• Annual turnover of £10.2 million or less.
• Total balance sheet assets of £5.1 million or less.
• 50 employees or fewer.

Registered charities are also charged at the lower small-business rate.

Note: The Pre-Licence Priority Service is capped at a set daily quota of allocations across the UK. Applications for priority processing open at 09:00 each working day via the dedicated UKVI priority email portal.

Ongoing Recruitment and Sponsorship Costs

Once licensed, further statutory fees apply when assigning individual sponsorships:

Total Sponsorship Outlay = Licence Fee + CoS Assignment Fee + Immigration Skills Charge (ISC)

1. Certificate of Sponsorship (CoS) Fee:

   • Skilled Worker: £239 per assigned certificate.
   • Temporary Worker: £25 per assigned certificate.

2. Immigration Skills Charge (ISC): Payable by the employer at the point of assigning an Undefined or Defined CoS to a Skilled Worker or Senior/Specialist Worker.

   • Small / Charitable Sponsor: £364 for the first year of sponsorship + £182 for each subsequent 6-month period.
   • Medium / Large Sponsor: £1,000 for the first year of sponsorship + £500 for each subsequent 6-month period.

Exemptions from the Immigration Skills Charge apply if the worker is sponsored under specific SOC codes (such as certain scientific research or educational roles), switches in-country from a Graduate or Student visa, or holds a visa valid for under 6 months.

For a full breakdown of candidate salary thresholds and route requirements, see our guide on Unlock International Talent: Your Complete Guide to UK Visa Sponsorship.

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Post-licence compliance, duties, and HR systems

Holding a Sponsor Licence is an ongoing legal undertaking. Sponsors must adhere to five primary compliance duty categories, as set out in the Home Office sponsor guidance.

+--------------------------------------------------------------------------+
|                     THE 5 PILLARS OF SPONSOR COMPLIANCE                  |
+--------------------------------------------------------------------------+
|                                                                          |
|  1. Reporting Duties    ──> Report absences, resignations, changes in    |
|                             pay, or structural shifts via SMS (10/20 days|
|                                                                          |
|  2. Record-Keeping      ──> Retain contracts, right-to-work checks,      |
|                             payslips, and Appendix D documents           |
|                                                                          |
|  3. Complying with Law  ──> Adhere to National Minimum Wage, working     |
|                             time limits, and statutory employment law    |
|                                                                          |
|  4. Genuine Employment  ──> Assign genuine roles matching SOC codes; no  |
|                             unregulated third-party labour supply        |
|                                                                          |
|  5. Key Personnel Oversight ──> Maintain active, vetted Key Personnel;   |
|                             log in securely via Multi-Factor Auth        |
|                                                                          |
+--------------------------------------------------------------------------+

1. Mandatory SMS Reporting Timelines

Sponsors must report specific events via the Sponsorship Management System (SMS) within statutory deadlines:

• Within 10 Working Days:

  • If a sponsored worker fails to start work on their agreed start date.
  • If a sponsored worker is absent from employment for more than 10 consecutive working days without authorised leave.
  • If a sponsored worker resigns, is dismissed, or has their contract terminated early.
  • If significant changes occur to the sponsored worker's employment terms (e.g., job title, core duties, work location, or a salary increase/decrease).

• Within 20 Working Days:

  • Any change to the organisation's structure, including mergers, acquisitions, takeovers, business sales, or changes in trading address.
  • If the organisation enters administration, liquidation, or ceases trading entirely.
  • Changes in appointed Key Personnel (Authorising Officer, Key Contact, Level 1 Users).

2. Record-Keeping under Appendix D

Under Sponsor guidance Appendix D: keeping records for sponsorship, employers must keep comprehensive records for all sponsored employees throughout their sponsorship, and for at least one year following the termination of employment or until a UKVI compliance officer has audited and approved the files.

Mandatory Retained Records Include:

• Verified copies of Right to Work documents (dated and authenticated according to current Home Office digital or physical verification standards).
• Detailed contracts of employment covering job duties, working hours, and salary.
• Comprehensive payroll records showing gross and net payments, PAYE deductions, and bank transaction receipts confirming payment into the worker's named account.
• Up-to-date evidence of mandatory professional registrations, driving licences, or regulatory accreditations required to carry out the role.
• Evidence of recruitment methodology (if applicable) and clear rationale for selecting the sponsored candidate.
• A written record of the worker's current UK residential address, mobile telephone number, and emergency contact details.

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Common refusal reasons and how to prevent them

Home Office refusal data and audit findings consistently identify procedural and evidential errors as the primary drivers of sponsor licence refusals. Understanding these common pitfalls helps applicants build robust, compliant submissions.

Common Refusal Causes:
├── Inadequate Appendix A Evidence (Missing documents, unverified banks, lease errors)
├── Key Personnel Deficiencies (Unsuitable AO, criminal records, poor SMS knowledge)
├── Failed Genuine Vacancy Assessment (Incompatible SOC codes, below-market salaries)
└── Pre-Licence Compliance Failure (Poor HR systems, inadequate right-to-work tracking)

1. Failure to Supply Compliant Appendix A Evidence

• The Pitfall: Submitting fewer than the 4 mandatory documents, supplying bank statements from an unapproved institution, or providing documentation that does not cover the legal entity named on the application form.
• Prevention: Ensure all corporate documentation precisely matches the legal entity name, trading name, and registered address on Companies House and HMRC registers. Cross-check your bundle against Appendix A before making payment.

2. Failure to Respond within Statutory Timeframes

• The Pitfall: Missing the strict 5-working-day deadline for transmitting the digital evidentiary bundle following online submission, or failing to answer clarification emails sent by caseworkers.
• Prevention: Collate, index, and verify all supporting documents before submitting the digital application form and paying the processing fee. Monitor both the Authorising Officer's inbox and spam filters for official UKVI correspondence.

3. Incompatible Job Categorisation and Salary Miscalculations

• The Pitfall: Selecting a Standard Occupational Classification (SOC) code that does not accurately reflect the actual day-to-day duties of the role, or offering a salary below the applicable threshold (such as the general £38,700 threshold or the specific SOC going rate, unless eligible for qualifying discounts).
• Prevention: Review the official Immigration Salary List, occupation codes, and going rates under the Immigration Rules. Write a detailed job specification that aligns directly with the relevant SOC code descriptions.

4. Nominated Authorising Officer Unsuitability

• The Pitfall: Appointing an unvetted third-party contractor, an unaccredited external agent, or a non-UK-based director who cannot demonstrate direct oversight of internal recruitment and HR functions.
• Prevention: Appoint a direct employee, senior director, or verified statutory officer based permanently in the UK who has received proper training on sponsor duties and the Sponsorship Management System.

5. Adverse Findings During Pre-Licence Site Audits

• The Pitfall: Compliance officers find that the organisation has no formal tracking for staff absences, lacks standard right-to-work checklists, or holds incomplete personnel files.
• Prevention: Conduct an internal HR compliance audit before applying. Ensure all current personnel files contain verified right-to-work documentation and that clear reporting protocols are established.

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Sponsor Licence refused, suspended, or revoked: next steps

When an application is refused, or an existing licence is subjected to administrative enforcement, immediate strategic action is required.

+-------------------------------------------------------------------------+
|                  SPONSOR LICENCE ADVERSE DECISION PATHWAY               |
+-------------------------------------------------------------------------+
|                                                                         |
|  DECISION TYPE: Refusal of Application                                  |
|   └──> Option A: Error Correction Request (If caseworker factual error) |
|   └──> Option B: Pre-Action Protocol (PAP) for Judicial Review          |
|   └──> Option C: Wait out 6-Month Cooling-Off Period and Reapply        |
|                                                                         |
|  DECISION TYPE: Licence Suspension                                      |
|   └──> Action: Submit detailed representations and evidence in 20 days  |
|                                                                         |
|  DECISION TYPE: Licence Revocation                                      |
|   └──> Consequence: CoS cancelled; sponsored workers face 60-day visa   |
|        curtailment; 12-month cooling-off period applies                 |
|   └──> Legal Remedy: Judicial Review Challenge via High Court           |
|                                                                         |
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Dealing with an Application Refusal

There is no statutory right of administrative appeal against the refusal of a Sponsor Licence application. However, organisations have three potential routes forward depending on the grounds of refusal:

1. Error Correction Request (Annex C Request): If UKVI refused the application based on a clear, demonstrable caseworker error (for example, failing to review a document that was delivered within the 5-day window), an applicant may submit an Error Correction Request form within 14 calendar days of receiving the refusal notice.
2. Pre-Action Protocol for Judicial Review (JR): Where a decision is legally flawed, irrational, or procedurally unfair, the organisation can instruct legal representatives to issue a Pre-Action Protocol (PAP) letter for Judicial Review against the Home Office.
3. Cooling-Off Period Management: If the refusal stands and was not based on simple clerical oversight, a mandatory 6-month cooling-off period generally applies before the organisation can submit a fresh licence application.

Understanding Licence Suspension and Revocation

For active sponsors, non-compliance can lead to severe enforcement action:

• Licence Downgrading (B-Rating): If minor compliance breaches are identified during an audit, UKVI may downgrade the sponsor from an A-rating to a B-rating. The business is issued an action plan (costing £1,476) and must resolve all administrative issues within 3 months. While B-rated, the sponsor cannot issue new Certificates of Sponsorship to fresh recruits.
• Licence Suspension: Where significant or systemic breaches are suspected, UKVI will issue a suspension notice. The sponsor has 20 working days to submit written representations and evidence addressing the alleged breaches.
• Licence Revocation: If representations are rejected, the licence is formally revoked.
  • The organisation faces a mandatory 12-month cooling-off period.
  • All outstanding and assigned Certificates of Sponsorship are cancelled.
  • Visas held by existing sponsored employees will be curtailed by UKVI to 60 calendar days (or the remaining duration of their leave, whichever is shorter). During this window, affected employees must either find an alternative licensed sponsor or leave the UK.

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Instructing a Sponsor Licence lawyer or regulated adviser

Navigating corporate immigration requires careful attention to statutory standards, employment regulations, and evolving Home Office operational guidance. When managing these issues, organisations often seek professional legal support.

+--------------------------------------------------------------------------+
|                  APPOINTING REGULATED LEGAL ADVISERS                     |
+--------------------------------------------------------------------------+
|                                                                          |
|  REGULATION TIERS:                                                       |
|  - Immigration Advice Authority (IAA) (e.g. Wesbridge Associates         |
|    Registration F202537300)                                              |
|  - Solicitors Regulation Authority (SRA) / Bar Standards Board           |
|                                                                          |
|  PERMITTED REPRESENTATIVE FUNCTIONS:                                    |
|  - Prepare and submit initial licence applications                       |
|  - Act as nominated Key Contact or Level 1 User on the SMS portal        |
|  - Conduct pre-audit HR checks and right-to-work system reviews          |
|  - Submit formal responses to suspension notices or refusal decisions    |
|                                                                          |
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Regulated Status

Under Section 84 of the Immigration and Asylum Act 1999, it is a criminal offence to provide unregulated immigration advice or services in the United Kingdom. Corporate entities must ensure that any retained immigration practitioner is fully licensed by:

• The Immigration Advice Authority (IAA); or
• The Solicitors Regulation Authority (SRA), Law Society of Scotland, or General Council of the Bar.

The Scope of Legal Representation

A regulated legal representative can provide valuable support across several operational stages:

1. Strategic Document Audit: Reviewing all company documentation against Appendix A requirements before digital lodgement to prevent avoidable procedural refusals.
2. Key Personnel Integration: A regulated adviser can be appointed on the application to act as the primary Key Contact or as an external Level 1 User, supporting administrative management of the SMS alongside internal staff.
3. HR Systems Assessment: Reviewing absence reporting, file management, and right-to-work systems against Home Office compliance standards prior to unannounced pre-licence site inspections.
4. Appeals and Enforcement Defence: Drafting formal Pre-Action Protocol letters for Judicial Review or preparing detailed representations to challenge proposed licence suspensions and revocations.

To understand how professional advisers help manage the sponsorship framework, review our analysis on Navigating UK Immigration: Your Expert Partner for Visas & Sponsorship.

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Frequently asked questions

What is a Sponsor Licence?

A Sponsor Licence is an official authorisation granted by UK Visas and Immigration (UKVI) that allows a UK organisation to employ non-settled workers. It confirms that the business has been vetted by the Home Office, meets corporate eligibility standards, and possesses adequate HR systems to monitor and report on sponsored employees throughout their employment.

How much does a Sponsor Licence cost?

The initial licence application fee is £574 for small businesses and registered charities, or £1,576 for medium and large businesses. Additional costs include the Certificate of Sponsorship (CoS) assignment fee (£239 for Skilled Workers; £25 for Temporary Workers) and the Immigration Skills Charge, which ranges from £364 to £1,000 per sponsored year depending on the size of the organisation.

How long does a Sponsor Licence remain valid?

Following policy changes introduced by the Home Office on 6 April 2024, Sponsor Licences are now granted with indefinite validity, removing the previous requirement to apply for renewal every four years. Existing licences expiring on or after 6 April 2024 have been automatically extended for 10 years within the Sponsorship Management System (SMS).

Can a newly established start-up business obtain a Sponsor Licence?

Yes, newly established UK businesses and start-ups can secure a Sponsor Licence provided they satisfy the Appendix A criteria. A start-up must provide proof of an active corporate bank account with an FCA-regulated institution, employer’s liability insurance, corporate premises or lease documentation, and proof of registration with HMRC for PAYE and VAT where applicable.

What happens if an application for a Sponsor Licence is refused?

If an application is refused, the organisation is generally subject to a mandatory 6-month cooling-off period during which it cannot submit a new application. However, if the refusal resulted directly from a clerical error or an administrative mistake by the UKVI caseworker, the business can submit an Error Correction Request within 14 calendar days of the decision notice.

What are the consequences for sponsored staff if a licence is revoked?

If an employer's Sponsor Licence is revoked, all assigned Certificates of Sponsorship are immediately cancelled. UKVI will issue curtailment notices to any current sponsored employees, reducing their remaining visa validity to 60 calendar days (or their remaining visa length, if shorter), during which time they must find an alternative licensed sponsor or leave the UK.

What is the difference between a Defined and an Undefined CoS?

A Defined Certificate of Sponsorship (DCoS) is required for individuals applying for a Skilled Worker visa from outside the UK and must be specifically requested and approved by UKVI on a case-by-case basis. An Undefined Certificate of Sponsorship (UCoS) is drawn from the sponsor's pre-approved annual allocation and is used for individuals applying from within the UK (such as employees switching from a Student or Graduate visa, or extending their current Skilled Worker permission).

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Sources

• UK visa sponsorship for employers: Apply for your licence — Updated April 2024
• UK visa sponsorship for employers: Costs — Updated April 2024
• Sponsor guidance Appendix A: supporting documents for sponsor applications — Updated October 2024
• Sponsor guidance Appendix D: keeping records for sponsorship — Updated March 2024
• Workers and Temporary Workers: guidance for sponsors Part 1 - Apply for a licence — Updated October 2024
• Workers and Temporary Workers: guidance for sponsors Part 2 - Sponsor a worker — Updated October 2024
• Workers and Temporary Workers: guidance for sponsors Part 3 - Sponsor duties and compliance — Updated October 2024
• Multi-factor authentication for UK visa sponsors: SMS manual 13 — Updated December 2023
• Sponsorship: guidance for employers and educators — Updated November 2024

Written and reviewed by Wesbridge Associates – IAA regulated (Level 1, F202537300). Last reviewed 23 October 2026. Editorial policy

Frequently asked questions

Common questions on this topic, answered by our advisers.

What is a Sponsor Licence?

How much does a Sponsor Licence cost?

How long does a Sponsor Licence remain valid?

Can a newly established start-up business obtain a Sponsor Licence?

What happens if an application for a Sponsor Licence is refused?

What are the consequences for sponsored staff if a licence is revoked?

What is the difference between a Defined and an Undefined CoS?