Before granting a sponsor licence, the Home Office has to be satisfied that an organisation meets two sets of criteria: eligibility and suitability. Part 1 of the sponsor guidance sets both out. This guide summarises what the guidance says the Home Office looks at. It cannot tell you whether your organisation meets the criteria; only UK Visas and Immigration (UKVI) decides that, and a regulated adviser can advise on your circumstances.
What the Home Office needs to establish
Paragraph L3.3 of Part 1 lists what UKVI must establish before it grants a licence. In summary, that the organisation:
- is a genuine organisation operating or trading lawfully in the UK
- is registered or licensed with any regulator or licensing authority it needs in order to operate legally
- is honest, dependable and reliable, and has not behaved in a way that is not conducive to the public good
- can carry out its sponsor duties and show that it is complying
- meets any extra requirements for the routes it is applying for
- is able, and intends, to offer work that meets the definition of an "eligible role" in the glossary
Granting a licence is at the Home Office's discretion, and a licence creates no property or other enforceable right (L2.2).
Who can hold a licence
Individuals cannot be sponsors unless they are sole traders sponsoring someone to work in their business (L1.6). The Home Office will not grant a licence to sponsor workers in a personal capacity, such as a household employing someone privately, or a worker employed for the personal benefit of someone at the organisation in a role unrelated to its activities (L1.7). The one exception covers private servants in diplomatic households on the International Agreement route (L1.9).
A genuine operating or trading presence
To show it is genuine, an organisation sends the documents listed in Appendix A, and UKVI may verify them (L8.2). If it has no operating or trading presence in the UK, the application is refused (L8.3). UK Expansion Worker applicants are the exception: they need a UK "footprint" instead.
Paragraph L8.4 gives two examples of where UKVI is likely to conclude there is no real trading presence. The first is no significant trade: apart from tax, utility and similar bills, there are no transactions with customers, and the money comes mainly from a related company or private investors. The second is "circular trading": invoices and contracts are wholly or mainly between entities under common ownership or control, with little evidence of services to outside customers.
Regulated organisations
If an organisation must be registered with, inspected by or licensed by a regulator to operate legally, it must hold that registration (L3.3). Not being registered as required is a ground on which an application will be refused (Annex L1, j). Appendix A, section 2.4 explains how to show registration.
Suitability checks
UKVI checks the organisation and its key personnel against its own records and the Police National Computer (L4.23). GOV.UK's eligibility page says an employer cannot get a licence with unspent convictions for immigration offences or certain other crimes, such as fraud or money laundering; Annex L4 of Part 1 lists the relevant offences.
Paragraph L8.7 lists what UKVI looks at to judge suitability, including:
- whether the organisation understands its sponsor duties and has HR systems or processes to meet them
- whether UKVI can carry out compliance checks, unannounced if needed, at the places where workers would work
- any criminal convictions or civil penalties
- UK or UN sanctions that holding a licence would breach
- child safeguarding arrangements, where relevant
- any evidence of previous non-compliance
UKVI also considers whether it suspects the organisation exists mainly to bring in someone who would not otherwise have permission to work in the UK (L8.8). Paragraph L8.9 gives an example: a company registered by a foreign national living abroad, who employs one UK worker as Level 1 User so that the company can sponsor the foreign national.
Eligible roles
UKVI must be satisfied that the organisation can and intends to offer work meeting the definition of an eligible role, including any salary or skill level rules for the route (L8.10). Paragraph L8.12 gives Skilled Worker examples where it may not be satisfied: a business that has never employed anyone in a role at the required level; a role with no credible need in the business; or salaries that do not look sustainable given the business's turnover. GOV.UK's job suitability page lists further rules for some routes. The role checker shows the published Skilled Worker rules for each occupation code.
Previous refusals and lost licences
GOV.UK's eligibility page says an organisation will not get a licence if it lost one through revocation in the last 12 months, or in the last 24 months after more than one revocation. It will not usually get one if it applied unsuccessfully in the last 6 months, with exceptions. Section L9 of Part 1 sets out these "cooling-off periods" in full.
Key personnel
An organisation must nominate an Authorising Officer and at least one Level 1 User who meet the requirements in section L4. If it does not, the application is refused (Annex L1, s). For the costs involved, see the cost calculator; for duties after a grant, see the compliance checklist.
Common questions
Can a newly formed company apply?
Part 1 does not bar new companies, but every applicant needs a genuine operating or trading presence. Appendix A, section 2.3 asks organisations trading in the UK for less than 18 months for a statement from a UK business bank account.
Does a licence for one route cover others?
No. A sponsor can use only the routes it was licensed for (L6.22). It can apply to add routes later (L10.8).
Is meeting the criteria enough to get a licence?
Not automatically. The Home Office has discretion, and Annexes L1 to L3 list grounds on which it will, normally will, or may refuse.
Where can we check whether an organisation already holds a licence?
The public register of licensed sponsors lists every licensed organisation. The sponsor licence check searches it by name.