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May 6, 2021

The Main Benefits of Sponsor Licence for UK Companies

Sponsor Licence created by UK Government is mainly used by UK companies to employ overseas staff. Starting from 1 January 2021 a sponsor licence will be needed also to employ EEA and Swiss citizens coming to the UK to work. To sum up the main benefits of the licence, Mann’s Solutions team prepared an article explaining the main licence benefits both for the employer and employee. 

Employing Talented Overseas Staff

Sponsor Licence was established by the UKVI to let UK companies employ skilled and talented workers from European, Swiss and non-European countries. To obtain the licence, UK company must first apply for an application to UK Visas and Immigration (UKVI), on the other hand, employees must have a job offer from an employer that has made a successful sponsor licence application before they can apply to come to, or remain in the UK for work.

Possibility for Employees to Come to the UK for Work

For employees, Sponsor Licence opens an opportunity to move and work in the UK. The employees willing to relocate, first have to start with job search, once the job offer (by the company who already has the licence) is issued, the employee can apply for the work visa and receive a sponsorship certificate. 

Requirements to Obtain the Licence

There is no requirement that the business needs to be of a particular size before applying for a sponsor license, or that it must have been trading for a certain amount of time. This means that start-up businesses are also eligible to apply. The business should already be legally operational, and there should be someone available and resident in the UK to deal with any queries from the Home Office UKVI. 

In practice, there will typically be one or two key personnel who have been appointed and working in the business. A level 1 user, oversees the day-to-day management of the sponsorship license using the Sponsorship Management System (SMS).

Other requirements:

· There should be a genuine need for the employee

· The business HR systems can manage the sponsorship duties

· The business is offering employment suitable for tier 2 skill requirements that meet the minimum salary guidelines

 Documents required but not limited to are:

· Recent bank statements for your business

· Employers liability insurance documents from an authorised supplier of at least 5 million

· Proof of business registration with HMRC including the PAYE and Accounting Office Reference Number

· Evidence of ownership or lease of business premises

· Latest audited/non-audited accounts (signed)

· Any mandatory evidence required from regulatory bodies specific to the business sector


Besides, there is a fee for a sponsor license application which depends upon the size of the business:

· For a large sponsorship annual license the fee is £1,476

· For a small sponsorship annual license the fee is £536

Contact our Immigration Lawyers – Sponsor License

Mann’s Solutions is an international immigration law firm with offices in London, Hong Kong, and Moscow. We are specialised in offering UK Visas and Immigration by Investment services to high net worth individuals. Our immigration lawyers are regulated by OISC (Office of the Immigration Services Commissioner) and IMC (Investment Migration Council).

For further information or to discuss your circumstances in a private consultation with our immigration lawyers in London Office, please contact us at or call +44 207 993 63 46.