Amongst the many challenges faced by small business in the UK, the dilemma of whether or not to apply for a sponsor licence is one of them. Many small business wonder if it is worth the stress and resources to sponsor a skilled worker to come work for them in the UK. While their uncertainty is valid, it is important to understand that some job roles need an individual with specialized talent in that area to occupy them. And if the business owner is not able to get someone residing in the UK, then the sponsor licence can enable them employ the right person and sponsor them to come to the UK.
The UK Sponsor Licence is granted by the UK Home Office to a company to allow them to hire skilled workers from overseas. The licence gives these companies the legal authorization to ‘sponsor’ the skilled workers they hire to come over to the UK.
Whatever effort a company puts in recruiting a global talent is worth it because it helps them to overcome local talent shortages, promotes innovation by getting ideas from diverse individuals, and allows them to compete in a global market.
After reading this article, you will be empowered on the pros and cons of getting a UK sponsor licence so that you can make an informed decision. It will address the concerns and questions you have concerning the licence and process of acquiring it.
Why Small Businesses should Consider a Sponsor Licence in 2025?
Most business owners do not see the need to spend so much money recruiting global talents even when they cannot source local talent to occupy certain job roles. This perception could be because they have not yet understood the ROI that a sponsor licence brings to one’s business.
Business owners need to understand that having a diversified workforce gives your business a global advantage. It is one thing to simply have employers, but it is more beneficial to have innovative and driven individuals from around the world working for you.
Now that you understand why you need to hire global talents, you need to know the correct process for bringing them over, and that starts with getting a UK Sponsor Licence.
There are certain requirements a business owner needs to meet to be granted this licence. They first need to identify the gaps and talent shortages within their SME. Then they need to prove that the specialized skills and expertise they need are not readily available in the UK market.
As you read further, you will learn in detail, the requirements small businesses need to meet to be granted a UK sponsor licence by the Home Office.
What are the Requirements for Small Businesses to Obtain a Sponsor Licence in the UK?
To be eligible for the UK sponsor licence, you must be physically running your business in the UK. You must prove that throughout the existence of your business, you have not been convicted of immigration offenses or certain other crimes.
Since you are a small business, the latest bank statements you submit should have total assets of 5.1 million or less, fewer than 50 employees and an annual turnover of 10.2 million or less.
Aside from the online form they will submit and the application fee of 536 they will pay, small business owners need to present a certificate of VAT registration, evidence that they registered as an employer with HMRC, and proof of residence in the UK (could be a tenancy agreement or a mortgage statement).
Small business owners also need to show that the vacancy is a real, legitimate position that needs to be filled and not just an opening created solely with the aim of bringing someone to the UK through a work visa.
The Costs and Considerations for Small Businesses
The amount a business in the UK will be required to pay for the sponsor licence application fees depends on whether it is a small/charitable or medium/large business.
As was mentioned in the above section, small or charitable businesses pay a sponsor fee of 536. Meanwhile, medium/large businesses pay a sponsorship fee of 1476. Continuously, UK businesses need to pay a fee of 239 for each ‘Certificate of Sponsorship’ issued to a long-term worker and 25 for each certificate issued to a temporary worker.
Other than the above fees, small businesses will need to pay an annual charge of 364 for the immigration skills charge. They will also need to pay a visa application fee, which is determined by the worker’s salary, list occupation, length of visa, and visa type.
This rounds the total cost for sponsoring a skilled worker to the range of 9,000 to 12,000. Nevertheless, these fees are subject to change, as the UK government proposed on January 16, 2025, to increase certain immigration fees in 2025.
The price changes will affect CoS, ETA, and naturalization. The CoS will be increased from 239 to 525 for both new and renewal applications.
Benefits of a Sponsor Licence for Small Businesses Hiring International Workers
A sponsor licence allows small businesses to access a wider pool of skilled talent that may not be readily available locally. It further helps small businesses to stay ahead in innovation and creativity because they receive intelligent contributions from their diverse workforce, which will help them stay ahead of competition.
Hiring international workers promotes your company’s reputation, attracts national and foreign investment, and allows your business to grow to a global level.
Step-by-Step Guide to Applying for a UK Sponsor Licence as a Small Business
Small businesses can obtain a UK sponsor licence in the following six (6) steps:
- Decide on categories to include in the sponsor licence.
- Ensure that they are eligible.
- Complete the online application form
- Submit the required supporting documents.
- Pay the application fee.
- Submit a completed and accurate application to the UK Immigration Department.
When preparing your documentation, you need to gather documents (such as your company’s financial statements, evidence of HR systems, proof of business premises, and certificate of incorporation) that prove your business’s financial stability, legitimacy, and ability to comply with sponsorship obligations.
Small business owners need to bear in mind that they will be visited by the Home Office; hence, they need to stay prepared. To be prepared, the businesses need to ensure that they are in compliance with right-to-work checks, review human resource systems, and keep accurate records of sponsored workers’ employment details.
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