Requirements for a Skilled Worker Sponsor Licence 

Once you have registered a UK company, the next step towards obtaining a Skilled Worker visa via self-sponsorship is for your UK business to apply for and be granted a Skilled Worker sponsor license. 

We have prepared a detailed guide for UK businesses that are considering applying for a Skilled Worker sponsor license.  However, in outline, the Home Office will want to be satisfied that:

• Your UK business is a genuine business operating lawfully in the UK; and
• Your UK business is capable of carrying out its sponsor duties effectively; and
• Your UK business is offering genuine employment that meets the salary and skill level requirements of the Skilled Worker route

Genuine Business Operating Lawfully in the UK

To satisfy the Home Office that your business is a genuine business operating lawfully in the UK, you will need to provide at least four specified documents as set out in Appendix A of the sponsor guidance.  

The exact documents you will need to provide will vary depending on the circumstances of your application so professional advice should always be sought.  However, where a business has been trading in the UK for less than 18 months (and therefore qualifies as a start-up business), a Skilled Worker sponsor license application will typically need to include the following documents:

Mandatory document:

• Evidence that the business has a current, corporate bank account with a bank registered by the Financial Conduct Authority and the Prudential Regulation Authority in the UK;

Plus any three of the following documents:

• Proof that the business has registered with HMRC as an employer for PAYE and National Insurance; or
• Proof that the business has registered for VAT; or
• Proof that the business has employer’s liability insurance cover for at least £5m from an insurer authorised by the Financial Conduct Authority; or
• Proof of ownership or lease of business premises by the business; or
• Most recent annual accounts of the business. 

Your UK business will need to be registered with Companies House, have a UK business bank account and, in most cases, be registered for PAYE/NI and VAT, but it will not need to be actively trading or have generated any revenue in the UK.

However, it will often be easier to satisfy the Home Office that your UK business is a genuine organization operating lawfully in the UK where for example:

• You have an existing overseas business that is actively trading and a legitimate business case can be made for establishing a branch of your overseas business in the UK;
• You have a detailed business plan for your UK business;
• You have sufficient investment funds to operate your UK business, particularly any staffing costs; 
• You have undertaken some early-stage business activities in the UK such as setting up a functioning website, telephone number, and email address.
•  
• Business Is Capable of Carrying Out Its Sponsor Duties?

All licensed sponsors must fulfill certain duties.  Your duties as a licensed sponsor will include recording duties, record-keeping duties, and compliance with UK immigration laws.

The Home Office will judge whether your business is capable of carrying out its sponsor duties by looking at your current human resources and recruitment systems and practices.  For example, it will want to know whether you have systems in place that allow you to know when a sponsored worker has not turned up for work or to identify when their current permission is coming to an end. They may also conduct a compliance audit, either before they decide on your application or after your license is granted.

Genuine Employment That Meets Salary and Skill Level Requirements:

In addition to reviewing documentation about your company in the UK, the Home Office will want to be satisfied that:

• Your UK company will be offering employment that meets the skill level requirement of the Skilled Worker route (normally RQF Level 3 or above), The Home Office sets out eligible jobs in Appendix Skilled Occupations and Appendix Immigration Salary List. Each eligible job has a SOC 2020 occupation code; 
• Your UK company will be offering employment that meets the salary level requirement of the Skilled Worker route.  The salary you receive as a Skilled Worker will usually need to equal or exceed both the general salary threshold (normally at least £38,700 per year, but maybe £34,830 or £30,960 per year if you, as the worker, score alternative ‘tradable points’) and the ‘going rate’ for the applicable SOC 2020 occupation code in Appendix Skilled Occupations – or a percentage of the ‘going rate’ if you score ‘tradable points’;
• The job you are looking to sponsor is genuine;
• There is a direct employer-employee relationship between the sponsoring business and the worker, although the worker can be employed overseas and self-employment is permitted in some circumstances;
• The business is not looking to sponsor a role that will involve hiring a worker to a third party to undertake an ongoing or routine role.

Once your company’s sponsor license application has been approved, your business will be able to apply for and then assign a Defined Certificate of Sponsorship (CoS).  

Certificates of Sponsorship are electronic records that must be assigned to each migrant worker you wish to employ.  Each CoS will have a unique reference number which enables an applicant worker to apply for a self-sponsorship Skilled Worker visa.

Your Certificate of Sponsorship must have been issued not more than 3 months before the date of your Skilled Worker application.

Your Certificate of Sponsorship must include certain mandatory information, including:

• Details of your name, job, and salary;
• A start date which is no more than 3 months after the date your Skilled Worker visa application;
• Confirmation that the Certificate of Sponsorship has not been used in a previous application which was either granted or refused and has not been withdrawn by the sponsor or cancelled by the Home Office.