Sponsor Licence Guide (August 2025): Key Requirements & Best Practices

Before you begin your application, make sure your business meets the three core eligibility tests. Most refusals happen here.

1. Genuine UK business

• You must be lawfully operating in the UK.
• Registered with Companies House (if applicable), however solo traders can also obtain a sponsor licence.
• Have a verifiable trading presence.

2. Strong HR systems and processes

• You must prove you can track, monitor, and report on sponsored workers.
• Expect a potential Home Office pre-licence compliance audit before approval. 

3. Trustworthy key personnel

• The Home Office checks business owners and nominated staff.
• Any unspent criminal convictions or past immigration non-compliance can lead to refusal.
   

To get a UK sponsor licence, you must prove you are a genuine UK business, have compliant HR systems, and ensure your key staff are honest and reliable.

Here’s a breakdown of what the Home Office expects:

Step 1: Appoint key personnel

• Authorising Officer – senior figure responsible for compliance. Must be an office holder (director or secretary) or paid employee, e.g. can’t be a contractor.
• Key Contact – main liaison with the Home Office.
• Level 1 User – manages daily licence admin via the Sponsorship Management System (SMS).

Businesses can appoint one person to all roles if criteria are met that must be a British citizen or a settled person, be physically based in the UK, have no troubles with the law, and genuinely involved in the business to overlook the sponsorship process going forward.

Step 2: Gather supporting documents

At least four documents are required from Appendix A, usually:

• Latest business bank statements
• PAYE registration
• Latest submitted accounts
• CT600
• Employer’s liability insurance (£5m minimum)
• VAT registration certificate
• Lease or ownership proof for premises

Step 3: Submit application & pay fee

• Small/charitable sponsors: £574
• Medium/large sponsors: £1,579
• Optional priority service: +£500 (decision in 10 working days if slots available)

The Home Office decides whether you qualify as a small/charitable or large sponsor based on specific financial and staffing thresholds—see our full breakdown here.

Sponsor licence processing time: Standard is up to 8 weeks (we see turnaround much faster - under 5 weeks) and Priority is within 10 working days.

You still can get a request for additional information or an invitation for a pre-licence audit, even though you paid for the priority service, e.g. paying a priority fee doesn’t mean you will avoid the audit. If it happens, your processing time will be extended and you won’t receive a refund for your fee.

Step 4: Send documents

Within 5 working days you must provide all evidence + signed submission sheet.

⚠️ Missing the deadline = automatic refusal.

Even with a sponsor licence, your candidate must qualify for a Skilled Worker visa. Before assigning a Certificate of Sponsorship (CoS), check:

• Salary threshold – role must meet both minimum salary & “going rate.”
• Skill level – role must meet visa requirements. Some shortage list jobs have flexibility.
• English proficiency – must meet UKVI standards (test, degree taught in English, or other methods).

A Skilled Worker candidate must meet three key requirements: salary threshold, role skill level, and English language proficiency.

Yes, start-ups can apply. But expect higher scrutiny if you’ve been trading less than 18 months.

You don’t have much of a credibility with the Home Office yet due to a short time of operations, however there are some things you can consider to improve your chances of success:

• Must provide 4 documents: Bank statement, Employer’s Liability Insurance, PAYE registration, VAT registration OR lease agreement of a physical office (e.g. it is not a registered address, it is an office where you have a dedicated room, so co-working membership won’t be accepted).
• Must hold a UK corporate bank account regulated by FCA & PRA, e.g. accounts from Wise and Tide are not accepted.
• Provide proof of funds on the bank account, we recommend at least £30-£50k on a bank account: if you offer a salary of £55k per year, and have £2k in the bank account, the question is how will you afford to pay the salary in the future once you obtain the licence. Therefore, we are seeing companies being refused because of a low bank balance, and the caseworker considers them as ‘not genuine’, e.g. there is a risk of an abuse of the immigration system - they just want to get an immigration status.

This demonstrates your business is genuine and sustainable.

• Standard processing: Up to 8 weeks (can be shorter).
• Priority service: 10 working days (extra £500, limited slots).
• RFIs (Requests for Information): Short deadlines, so prepare in advance.
• Rejection: Refund + can apply straight away.
• Refusal: No refund + “cooling-off” period of 6–12 months before reapplying + No right of appeal.

If your sponsor licence is rejected, your fee will be refunded and you can apply immediately, the reason for rejection is never clearly articulated in the decision letter

UK sponsor licence processing takes up to 8 weeks (10 days with priority service). If refused, you must wait 6–12 months to reapply.

Applying for a sponsor licence is high-stakes. An error means delays, lost fees, or refusal.

At Nation.better, we:

• Assess eligibility upfront.
• Compile and review documents.
• Prepare you for Home Office scrutiny.
• Ensure your application is error-free and compliant.

Our proactive approach gives you confidence, compliance, and peace of mind.

📩 Contact us today to secure your sponsor licence and unlock global talent.