Sponsor Licence Application UK How to Apply and What to Expect
Written by Bill Zahr
Last Updated 12 September 2026
What is a UK Sponsor Licence?
A sponsor licence is a permission granted by UK Visas and Immigration that gives a UK employer the authority to assign Certificates of Sponsorship to overseas workers. Each Certificate of Sponsorship enables one worker to apply for a sponsored work visa. Without a sponsor licence the employer cannot generate CoS references and cannot hire from outside the UK through any sponsored immigration route.
The licence is granted under Part 3 of the Immigration Rules and Appendix D of the sponsor guidance. It is held in the Sponsor Management System the Home Office online portal through which sponsors manage their sponsored workers and is valid for four years from the date of grant.
Worker licence vs Temporary Worker licence
Sponsor licences are issued in two tiers. A Worker licence covers routes where the worker is employed in a skilled role on a longer-term basis: the Skilled Worker visa, Health and Care Worker visa, Senior or Specialist Worker visa, Graduate Trainee visa, UK Expansion Worker visa, Scale-Up Worker visa, and International Sportsperson visa. Most employers seeking to hire skilled overseas workers need a Worker licence.
A Temporary Worker licence covers routes for shorter-term or specific-purpose work: Creative or Sporting Worker, Charity Worker, Religious Worker, Government Authorised Exchange, International Agreement, and Seasonal Worker. An employer may hold both licence types if needed.
Sponsor Licence Requirements Who Can Apply
Any UK-registered business, charity, educational institution, or public sector organisation can apply for a sponsor licence. There is no minimum size requirement and no minimum turnover or employee count. A sole trader, a one-person limited company, a large corporation, and a registered charity all apply through the same process.
The key eligibility requirements are that the organisation must:
1. Be a genuine operating business with a lawful trading presence in the UK registered at Companies House with a live entry, actively trading, and with a real physical presence at UK business premises.
2. Have appropriate HR systems to meet Appendix D compliance obligations including systems to maintain compliant employment records, carry out right-to-work checks, and report changes through the SMS within required timeframes.
3. Not have any disqualifying history among directors, partners, or key personnel including previous involvement in a sponsor licence that was revoked for non-compliance, unspent criminal convictions for relevant offences, or previous civil penalties for employing illegal workers.
4. Be able to demonstrate that the roles to be sponsored are genuine, at the required skill level (RQF Level 6 or above from 22 July 2025 for the Skilled Worker route), and paid at or above the applicable salary threshold.
Authorising Officer Who Must Be Appointed
Every sponsor licence application must designate an Authorising Officer before submission. The Authorising Officer is the senior person within the organisation who is accountable for the licence and responsible for ensuring the organisation meets its sponsorship obligations throughout the life of the licence.
| Authorising Officer — requirements | |
|---|---|
| Who can be AO | A director, partner, or equivalent senior employee — not a contractor, consultant, or external adviser |
| UK-based | Must be based in the UK |
| Character requirements | No unspent criminal convictions for relevant offences | Not previously involved in a revoked or suspended licence |
| Not subject to | Bankruptcy proceedings | Outstanding County Court Judgments |
| Relationship to Level 1 User | The AO and Level 1 User can be the same person in a small organisation |
| Ongoing obligation | The AO is personally responsible for compliance — UKVI holds the AO accountable if obligations are not met |
Level 1 User The Day-to-Day SMS Operator
The Level 1 User is the person or persons who manage the sponsor licence on a day-to-day basis through the Sponsor Management System. They assign Certificates of Sponsorship, report changes to the Home Office, and manage the records of sponsored workers.
The Level 1 User must be an employee of the organisation not a contractor or external immigration adviser. Multiple Level 1 Users can be appointed. An immigration adviser can be given a Level 2 User role with read-only access to the SMS, but cannot be a Level 1 User who actively assigns CoS or submits reports.
The Level 1 User must meet the same character requirements as the Authorising Officer. They must be UK-based and must not have been involved in a previously revoked or suspended licence.
Appendix A Documents What You Need to Submit
Sponsor licence applications must be supported by documents listed in Appendix A of the sponsor guidance. The required documents vary by organisation type. The following sets out the standard requirements for a UK private limited company. Charities, sole traders, public bodies, and educational institutions have different specific requirements — check the current Appendix A for your organisation type before applying.
| Appendix A documents — private limited company (standard) | |
|---|---|
| HMRC registration | Letter from HMRC showing the employer's PAYE reference number |
| VAT registration | VAT registration certificate (if VAT registered) |
| Business premises | Lease agreement, title deeds, or Land Registry entry | For serviced office: licence agreement plus evidence of genuine business activity |
| Employer's liability insurance | Valid certificate showing at least £5m coverage |
| Most recent accounts | Latest year's accounts — audited or unaudited | New businesses: management accounts or bank statements showing trading activity |
| Authorising Officer evidence | For a director: Companies House filing | For an employee: employment contract and payslip |
| Role evidence | Job description, organisational chart, evidence salary meets the applicable threshold |
Appendix A is prescriptive do not substitute documents
UKVI assesses the application against the specific documents listed in Appendix A for your organisation type. Substituting a bank statement where an accounts document is required, or submitting a utility bill where a lease is required, will result in a request for further information or refusal. The current Appendix A (updated periodically) takes precedence over any older version or online summary. Check the current version on GOV.UK before compiling your document bundle.
Sponsor Licence Application Fees 2026
The sponsor licence application fee is determined by the size of the organisation. The fee is paid online when the application is submitted and is non-refundable if the application is refused
| Sponsor licence application fees — 2026 | |
|---|---|
| Small or charitable sponsor | £536 |
| Medium or large sponsor | £1,476 |
| Pre-licence priority service | +£500 — decision targeted within 10 working days |
| Small employer definition | Fewer than 50 employees OR annual turnover under £10.2m |
| Standard processing | Up to 8 weeks from submission |
| Licence validity | 4 years from date of grant — must renew before expiry |
Sponsor Licence Application Priority Service
A pre-licence priority service is available for an additional £500, targeting a decision within 10 working days of application submission. This is appropriate where the employer has an urgent business need to sponsor a worker and cannot wait the standard 8 weeks.
The priority service does not change the assessment criteria or the document requirements. It simply expedites the processing time. If the application is incomplete or the documents do not meet the Appendix A requirements, a priority application will still be rejected or refused faster.
Scale-Up Sponsor Licence Requirements and Process
The Scale-Up Worker visa route requires a specific scale-up sponsor endorsement, separate from a standard Worker sponsor licence. An employer that holds a standard Skilled Worker sponsor licence does not automatically hold scale-up sponsor status.
To qualify for scale-up sponsor status the business must demonstrate:
Qualifying growth: Annualised growth of at least 20% per year in employees or turnover over a three-year period.
Minimum employees: A minimum of 10 employees at the start of the three-year qualifying period.
Ongoing trading status: The business must still meet the scale-up definition at the point of application.
The scale-up sponsor licence application process is the same as for a standard Worker licence, with the additional requirement to demonstrate the qualifying growth metrics through management accounts, Companies House filings, and payroll records.
The Daily Sponsor Licence Check
The Home Office publishes a register of all current sponsor licence holders, searchable by the public and — importantly — by workers checking whether a prospective employer is genuinely licensed before accepting a job offer. The register is updated daily and is the authoritative record of active, suspended, and recently revoked licences.
Employers can check their own licence status through the Sponsor Management System. Workers checking a sponsor's licence status should search the register at gov.uk/check-sponsor-licence. The register shows the licence holder's name, the routes covered, and whether the licence is currently active (A-rated) or restricted (B-rated).
| Sponsor register — status meanings | |
|---|---|
| A-rated | Active — employer is a compliant sponsor and can assign new Certificates of Sponsorship |
| B-rated | Restricted — employer downgraded due to compliance failings, cannot assign new CoS until Sponsor Action Plan is completed |
| Suspended | Ability to assign new CoS suspended pending compliance investigation — existing sponsored workers not immediately affected |
| Revoked | Licence withdrawn — existing sponsored workers' visas curtailed to 60 days; employer barred from reapplying for 12 months |
Sponsor Licence Compliance Obligations Appendix D
A sponsor licence is not a one-time grant it creates continuing obligations that run for the full life of the licence. UKVI conducts both announced and unannounced compliance visits. Failure to meet Appendix D obligations is the primary cause of licence downgrade, suspension, and revocation.
Record-keeping obligations
Sponsors must maintain a compliant HR file for every sponsored worker containing: copies of the passport and visa/eVisa details; the Certificate of Sponsorship reference; a copy of the right-to-work check carried out before employment; the employment contract; and records of all changes to salary, role, and hours throughout the sponsorship period.
Files must be kept for at least one year after the sponsored employment ends. They must be available for inspection by UKVI at any time.
SMS reporting within 10 working days
The following events must be reported through the SMS within 10 working days of the event occurring:
Changes to role or duties: Any material change to the worker's job title, occupation code, or core duties.
Changes to salary: Any change to the worker's gross annual salary increases and decreases.
Changes to working pattern: Any change to contracted hours or working location.
Unauthorised absence: The worker does not turn up for work for 10 consecutive working days with no explanation. Report within 10 working days of the first day of absence.
Termination: The sponsored worker leaves the employment whether through resignation, dismissal, or redundancy.
Per-pay-period salary compliance from 8 April 2026
From 8 April 2026, salary compliance is assessed on a per-pay-period basis for all sponsored workers. The salary threshold applicable to the worker's occupation and option must be met in every individual pay period not on an annual average. A shortfall in any single month from salary sacrifice, bonus-heavy pay structures, or payroll errors constitutes a compliance breach. Sponsors must review payroll against the applicable threshold for every pay period throughout the sponsorship.
Right-to-work checks
Sponsors must carry out a compliant right-to-work check on every employee not just sponsored workers before employment begins. From 6 April 2022, right-to-work checks for overseas nationals with eVisa status are carried out through the Home Office online checking service, not by checking physical documents. A check carried out incorrectly does not provide the statutory excuse against a civil penalty for employing an illegal worker.
Sponsor Licence Suspended What Happens
UKVI may suspend a sponsor licence when it has concerns about the sponsor's compliance. Suspension is typically triggered by a negative finding following a compliance visit, a pattern of SMS reporting failures, or intelligence suggesting the sponsor may be misusing the licence.
During suspension the sponsor cannot assign new Certificates of Sponsorship. Existing sponsored workers are not immediately affected their visas are not automatically curtailed. However, the employer cannot recruit new sponsored workers or extend current sponsored workers' visas during the suspension period.
UKVI issues a Suspension Letter setting out its concerns and inviting representations from the sponsor. The sponsor has 20 working days to respond. If representations are accepted, the licence may be restored to A-rating or downgraded to B-rating with a Sponsor Action Plan. If representations are not accepted, the licence may be revoked.
Revoked Sponsor Licence Consequences and the Revoked List
Licence revocation is the most serious outcome of a compliance failure. When a licence is revoked:
Existing sponsored workers: All current sponsored employees' visas are curtailed to 60 days from the date of revocation. They must find a new sponsor and apply to transfer their visa, or leave the UK, within that period.
New recruitment: The employer immediately loses the right to assign any CoS or employ any new sponsored workers.
Reapplication bar: The employer is barred from applying for a new sponsor licence for 12 months from the date of revocation. Directors or owners involved in the revoked organisation may be individually barred from acting as Authorising Officer for any future application.
The revoked sponsor licence list: UKVI publishes a list of recently revoked licences, searchable by company name. This is publicly accessible and may affect the employer's commercial reputation with clients, partners, and recruitment agencies.
Common Reasons for Sponsor Licence Refusal
| Sponsor licence refusal — most common grounds | |
|---|---|
| Not a genuine operating business | UKVI not satisfied the business is actively trading in the UK — often affects newly incorporated companies |
| Authorising Officer eligibility | AO has a disqualifying conviction, was involved in a previously revoked licence, or does not hold a genuinely senior position |
| Roles below required skill level | Proposed roles are below RQF Level 6 (from 22 July 2025) or not on the eligible occupation list |
| Salary below threshold | Proposed salary does not meet the general threshold (£41,700 from April 2026) or the going rate for the occupation code |
| Inadequate HR systems | Organisation cannot demonstrate systems sufficient to meet Appendix D record-keeping and reporting obligations |
| Immigration non-compliance history | Directors or key personnel involved in civil penalties, illegal working convictions, or previous licence revocations |
| Premises issues | Business operates from residential premises without evidence of genuine commercial use |
After the Licence is Granted First Steps
Once the licence is granted, the Authorising Officer and Level 1 User receive access to the Sponsor Management System. The licence number is shown in the SMS and on the published sponsor register. The first steps after grant are:
1. Confirm your CoS allocation: Worker sponsors are allocated a number of Undefined Certificates of Sponsorship automatically. Defined CoS (for overseas entry clearance applications) require a separate request to UKVI if the initial allocation is insufficient.
2. Set up the Level 1 User accounts: All SMS users must activate their accounts and familiarise themselves with the reporting obligations before any sponsored worker starts employment.
3. Review employment contract templates: Remove any cost clawback provisions before they are used with sponsored workers. Confirm salary in contracts will meet the applicable threshold in every pay period.
4. Prepare compliant right-to-work check procedures: Ensure all right-to-work checks are carried out through the Home Office online checking service for overseas nationals, before their first day of employment.
5. Assign the first CoS: Assign the Undefined CoS through the SMS for the worker who will apply inside the UK, or apply for Defined CoS allocation for a worker applying from overseas.
Frequently Asked Questions
How long does a sponsor licence application take?
Standard processing takes up to 8 weeks from submission. Pre-licence priority service (£500 additional) targets a decision within 10 working days. UKVI may conduct a pre-licence compliance visit for applications where the trading activity or HR systems are not fully evidenced by the submitted documents, which extends processing.
How much does a UK sponsor licence cost in 2026?
£536 for small or charitable sponsors. £1,476 for medium or large sponsors. The fee is non-refundable if the application is refused or withdrawn. Priority service adds £500. The licence is valid for 4 years and must be renewed before expiry at the same fee.
What is an Authorising Officer for a sponsor licence?
The Authorising Officer is the senior person within the organisation typically a director, partner, or senior manager who is personally accountable for the sponsor licence and responsible for the organisation's compliance with its sponsorship obligations. The AO must be UK-based, must not have disqualifying criminal convictions, and must not have been previously involved in a revoked or suspended licence.
What is the difference between an A-rated and B-rated sponsor licence?
An A-rated licence is active the employer can assign new Certificates of Sponsorship freely. A B-rated licence has been downgraded because UKVI has identified compliance concerns. A B-rated sponsor cannot assign new CoS until it completes a Sponsor Action Plan and UKVI restores the rating to A. B-rating is a temporary status if the action plan is not completed satisfactorily, the licence is revoked.
Can I apply for a sponsor licence as a sole trader?
Yes. Sole traders can hold sponsor licences. The eligibility criteria genuine trading activity, appropriate HR systems, a qualifying Authorising Officer, and ability to demonstrate the role is genuine and correctly paid apply equally regardless of business structure. Sole traders should note that the Authorising Officer and Level 1 User can be the same person, which simplifies the appointment requirement.
What happens to my sponsored workers if my licence is revoked?
All existing sponsored workers' visas are curtailed to 60 days from the date of revocation. Each worker must find a new sponsor and apply to transfer their visa within that 60-day window, or leave the UK. The employer is barred from reapplying for a new licence for 12 months. The consequences for affected workers' immigration status make proactive compliance management the most important ongoing obligation for any licence holder.
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