The United Kingdom Sponsor License is a crucial prerequisite for employers seeking to sponsor
skilled overseas workers. It involves a meticulous application process with defined steps and
requirements. In this comprehensive guide, we will delve into every aspect of obtaining a UK
Sponsor License, from understanding the types of Certificates of Sponsorship (CoS) to the
intricacies of the application process and potential pitfalls.
Introduction to Certificates of Sponsorship (CoS)
The Certificate of Sponsorship (CoS) is a reference number issued by a sponsoring employer
through the Sponsorship Management System (SMS) to a prospective sponsored worker. Its
primary function is to verify to the Home Office that all visa route requirements have been met.
CoS is indispensable for sponsored visa applicants, serving as a key document in the visa
application process.
Types of Certificates of Sponsorship: Defined and Undefined
1. Defined Certificate of Sponsorship:
- Purpose: For prospective employees outside the UK applying for entry clearance.
- Application Process: Sponsors apply for the defined CoS via SMS, providing job and salary
details.
2. Undefined Certificate of Sponsorship:
- Purpose: For individuals applying for a skilled worker visa to remain in the UK.
- Allocation: Employers assign an undefined CoS from their annual allocation.
- Additional Requests: Organizations can apply for more through SMS, with a one-day
turnaround time.
Assigning Certificates of Sponsorship:
Sponsors must grasp the distinction between defined and undefined CoS and ensure the
correct assignment. Failure to do so can lead to penalties. The assigned CoS becomes crucial
for the individual’s Home Office visa application, subject to a three-month timeframe.
Applying for Certificates of Sponsorship
Within the sponsor license application, organizations state their undefined CoS requirements
until April 5th, considering their recruitment needs for the upcoming year. Adequate preparation
and foresight are essential, as additional CoS can be requested through SMS as needed.
Recruiting Sponsored Roles: License First or Recruitment First?
A sponsorship license hinges on demonstrating a genuine employment offer that meets skilled
worker visa requirements. Having an identifiable candidate strengthens the application, making
it easier to establish compliance with criteria.
Applying for a Sponsor License: Step-by-Step Process
● All sponsorship license applications are submitted online. The Home Office has made
the Sponsorship Management System accessible to all who apply for a license.
● Information required in the form includes
● Type of licence being applied
● Organisation contact information
● Nomination of key personnel who will act on behalf of the organisation
● Contact details of the nominated key personnel
● A list comprising details of supporting documents being submitted
1. Completing the Application Form:
- Online form accessible via SMS.
- Specifies license type, contact information, key personnel, and supporting documents.
2. License Application Fee:
- Paid during the submission process.
- Submission sheet generated post-payment.
3. Documents Required:
- Minimum of four mandatory documents demonstrating eligibility.
- Appendix A outlines specific requirements, including accounts, insurance, VAT registration,
and more.
● Audited annual financial statements: current last three years
● Certificate of liability insurance availed
● Details and certificate of vat registration
● Current and last six months organisation bank account statement
● Evidence or document of the HMRC registration (details must include payee number and
reference number of accounts office)
● Documentary evidence of organisation location address
● Explanation of why a sponsorship license is required
● Details of skill set gap and why the gap exists
● Details of office operating hours
● Current organisation structure with reporting details highlighting the owner, director and
board member (if any)
● Fill list of employees (only if the number of employees is less than fifty)
4. Additional Supporting Documents:
- Includes reasons for application, industry specification, organizational details, and a contact
telephone number.
Submitting Supporting Documents
Supporting documents must be submitted within five days of the online application. Employers
are advised to prepare in advance, considering the complexity of Appendix A requirements.
Thoroughness in document submission avoids potential delays and rejections.
Submission of License Application Form
The application form is submitted by the Authorizing Officer (AO), with the completed
submission sheet serving as a crucial document. Legal representatives can assist but cannot
submit the form. A copy of the submission should be retained for records.
Apply by Head Office or Individual Branches?
Organizations can opt for a single license covering the head office and all branches or distribute
licenses among branches. The decision depends on practical considerations, balancing ease of
management with potential collective consequences in case of enforcement action.
Processing Times for a Sponsor License
Understanding processing times is vital for recruitment planning. Initial license processing can
take up to 8 weeks, with priority services available for expedited decisions. Factors affecting
processing times include compliance visits, supporting documents, key personnel availability,
and sponsored worker application processing.
Sponsor License Application Costs
The sponsor license application fee varies based on the organization’s size and type. Additional
charges include CoS assignment fees, Immigration Skills Charge, and sponsored worker’s visa
application fees. Detailed cost breakdowns are crucial for financial planning.
Pre-License Compliance Visit
The Home Office may conduct a compliance visit before deciding on a license application.
Employers must be prepared for on-site audits, ensuring HR systems, and relevant documents
are in order. Identifying and rectifying compliance issues is critical to avoid refusals.
Preparing for a Home Office Inspection
In the event of a compliance visit, meticulous preparation is essential. This includes verifying
application information, training key personnel, conducting mock compliance audits, and having
all relevant documents ready for inspection.
Sanctions for Non-Compliance
Ongoing compliance with sponsor license duties is crucial. Enforcement actions for breaches
include sponsor action plans, license downgrades, suspensions, or revocations. Revoked
licenses disrupt operations, leading to a wait of at least 12 months before reapplying.
Home Office Decision and License Validity
The Home Office communicates decisions via email. Successful applicants are added to the
UK’s register of licensed sponsors. A sponsor license is valid for four years and does not
auto-renew. Renewal applications involve a thorough assessment of compliance, potentially
including a compliance visit.
Options After Refusal or Rejection
Failed applications require careful analysis of refusal reasons. Rejected applications can be
resubmitted promptly, addressing identified faults. Refused applications may necessitate a
cooling-off period before reapplication. Judicial Review processes can be explored for
challenging decisions.
Conclusion
Obtaining a UK Sponsor License is a multifaceted process demanding attention to detail,
thorough preparation, and ongoing compliance. This comprehensive guide aims to equip
employers with the knowledge necessary to navigate the intricacies of the application process,
maintain compliance, and successfully secure and maintain a sponsor license for skilled
overseas workers.
