Sponsor Licence
UK Guide to Sponsor Licence (previously Tier 2 Sponsor Licence) (2021)
New guidelines for sponsor licence applications have been released by the Home Office. This represents the substitution of the Tier 2 (General) visa route for sponsored employment with the current Skilled Worker visa route. Employers will need a valid sponsorship licence to hire all talented professionals who do not have permission to work in the UK, namely EEA and Swiss nationals and their family members if they have not been given a settlement or pre-settled status under the EU Settlement Policy.
What is the definition of a sponsor licence?
A sponsor licence (previously known as a Tier 2 sponsor licence) permits UK-based businesses to hire talented employees from across the world (candidates can "switch" into the Skilled Worker visa from most other visa categories, such as Tier 4 Student and Tier 2 visas). The licence will be effective for 4 years once it is authorised, with the possibility to extend it.
What are the eligibility requirements for a sponsor licence?
To apply for a sponsor licence, your firm must have a UK presence. You also need to be operating or trading lawfully in the UK. If you have multiple UK branches you may apply for one licence to cover all your linked UK entities – alternatively, you might apply for a separate license for each branch, depending on your circumstances.
You must present documentation that you are recognized with the appropriate entity if you are obliged to be enrolled with or inspected/monitored by a statutory authority to run business lawfully in the UK. You may also be required to provide proof that you have the necessary planning approval or consent from the local planning authority to operate your line of business at your trading address. The Home Office must be convinced that you can provide genuine employment in a speciality area and that you will offer the relevant pay rate as prescribed by the Home Office.
As a condition of your licence application, you agree to accept all of the responsibilities that come with holding a sponsor licence. Private persons are not usually qualified to be acknowledged as sponsors, however, there is an exemption if the individual is a lone trader who intends to sponsor someone to work for them. We are competent and results-oriented, and we have a comprehensive understanding of Sponsor Licence forms. Please contact us if you have any questions about UK immigration legislation. We're here to assist you!
How much does it cost to apply for a sponsor licence?
The cost of a sponsor licence is determined by the size and scope of the business. This registration cost is due each time the company's licence is renewed (every four years). The Home Office normally reviews fees once a year and discloses the results on its website. Sponsor licence fees of £1,476 are necessary for organisations designated as "mid" and "large." All companies who do not fulfil the threshold of a "small" sponsor would be charged this price.
If you already have a 'Worker' sponsor licence (formerly known as a Tier 2 sponsor licence) and would like to add a subtype, there is no charge. If you have a Skilled Worker licence (formerly Tier 2 General) and still want to start sponsoring immigrant workers through the Intra-Company Transfer trail (formerly Tier 2 Intra-Company Transfer), all you must do is make an application to attach a subcategory through the Sponsor Management System – there is no Home Office charge.
What is the meaning of a sponsor licence rating?
If your sponsor licence application is approved, you will receive an A-rating. The Home Office gives this grade to trust companies who have demonstrated that they have the required mechanisms in place to fulfil sponsor responsibilities. To keep an A-rating, a sponsor must keep their policy and system up to date. The Home Office has the authority to re-evaluate at any time, and these conformity inspections will determine whether or not an organisation still satisfies the description for an A-rating.
If the Home Office discovers that a company is not fulfilling its sponsor obligations, it may be demoted to a B-rating. To reclaim their A-rating, a B-rated sponsor must follow a time-limited implementation plan. The licence will be withdrawn if they fail to meet the intervention policy's criteria within the stipulated time frame. It's worth noting that the Home Office can cancel or terminate a licence without first lowering it to a B-rating. The Home Office's course of action will be determined by the severity of the breaches that have been discovered.
How do I file for a sponsor licence for my company?
A corporation must submit an online form, along with a least of four expressly stated relevant documentation as substantiation of its trading involvement in the UK, as well as a written document that can provide context information about the company, to qualify for a sponsor licence (previously recognised as Tier 2 sponsor permission). The Home Office may sometimes request extra documentation, such as proof of the company's Human Resources operations, in order to determine whether the regulatory standards and sponsorship obligations will be completed. The Home Office may perform a monitoring visit at the company property while evaluating the permit application.
Prior to submitting your formal application, our specialists can execute a mock audit of your HR procedures to identify any flaws and implement solutions to address them.
To request a sponsor licence, what paperwork do I have to have?
With the Skilled Worker (previously Tier 2 General) licence application, you will normally be required to provide a minimum of four obligatory papers. The number of documents you'll need varies depending on whether you're representing a government agency, a startup, a franchise, or a small business. Documents that are simple to obtain entail:
Latest business bank statement.
Certificate of VAT registration.
Employer's liability insurance with a minimum limit of £5 million from a reputable insurer.
Confirmation of HMRC employer registration, such as a PAYE and Accounts Office Reference ID.
Proof of company premises ownership, rent, or lease contract.
Accounts that have recently been audited or that have not been audited.
Confirmation of your registration if you are obliged to be licensed with and/or inspected/monitored by a regulatory authority in order to function ethically in the UK.
If you're asking for a sponsor licence under the Intra-Firm Transfer subcategory, you'll additionally need to show proof of common ownership between the UK and the foreign company. There are numerous types of sponsor licences, each with its own set of supporting documentation that must be presented. Our team can help you decide which sort of visa you need and create a custom document checklist for you. It is possible to opt for many subcategories of sponsor licence at the same time if the conditions are completed and the proper evidence is supplied.
What are the different types of 'Worker' licences?
The Skilled Worker route is created specifically for migrants who have been assigned work in the United Kingdom. This is the major immigration trail for qualified labour from outside the UK, and it will adapt to all EEA and Swiss citizens who want to work in the UK, unless they have been approved pre-settled or settled condition under the EU Settlement Scheme, or they have a viable frontier labour permit or another visa that approve their UK profession.
The ICT path is for migrants who have been granted a temporary post in the UK office by their foreign employer. In order to be eligible for the ICT path, the nominated migrant must meet certain salary requirements. In contrast to the Skilled Worker visa option, this method does not lead to residency. Under the Intra-company Graduate Trainee method, it may also be feasible to sponsor a foreign employee. This path is for people who are being relocated to the UK as part of a graduate training course for a supervisory or speciality position.
Professional athletes and competent coaches cannot be sponsored under the Skilled Worker method; instead, they must apply through the distinct Sportsperson visa (T2) program.
This licence is for persons who have been offered a position in a religious community, such as a religious minister or a missionary. It must be a pastoral role except if the post is in a high position within the organisation. Within a faith institution, roles such as education, media creation, and management may not be eligible for sponsorship through the Minister of Religion option, and the institution may need to seek a Skilled Worker licence alternatively.
What are Certificates of sponsorship?
After a licence is issued, an electronic document called a Certificate of Sponsorship (CoS) is generated on the Sponsor Management System (SMS). To promote a migrant worker, the firm must first send an SMS to the Home Office requesting a Certificate of Sponsorship. Once this has been approved, the employer must assign it to the new immigrant worker they wish to sponsor in order to generate a special reference number for the individual to use when submitting their visa application.
The privileges of having a sponsor licence
Once an organisation obtains a sponsor licence, it is listed as a sponsor with the Home Office and can begin issuing Certificates of Sponsorship (CoS) to talented non-UK employees who fulfil the standards. For many businesses, the ability to attract talented personnel from other countries is essential for success and expansion. This is especially true given the end of movement following the UK's exit from the EU, which means that a large chunk of the UK workforce will need sponsorship starting in January 2021 if they do not secure their contribution to the country's economy before the deadline. Global Talent Visas has considerable expertise assisting businesses in obtaining and maintaining Skilled Worker sponsor licences.
Things To Do Upon The Rejection Of Skilled Worker sponsor licence
A six-month cooling-off period would be activated from the date of the refusal, unless there was a mistake in the Home Office's evaluation of the application, implying that another licence application could not be made until the end of that time. We can submit a pre-licence error checking on your behalf if we think there was an issue in the decision to suspend your application. If the verdict is not reversed following the pre-licensing error rectification, the only other alternative is to file a judicial oversight. Our team can provide technical advice and representation in appealing a sponsor licence refusal judgment.
Common Reasons Behind Application Refusal
The Home Office may reject your application for a variety of reasons. The following are a few of the most common:
Failure to pass the Compliance Audit conducted by the Home Office
The company lacks the necessary policies and procedures to fulfil its sponsorship obligations.
The company fails to pass the 'genuineness test.
Paperwork on migrant labour is not kept up to date.
The company has failed to respond to Home Office inquiries in a timely manner.
This isn't a complete list. If your licence application was denied for reasons other than those indicated above, we'll need a copy of your decision letter to see if it's a challengeable judgment.
How To Get A Sponsor Licence?
Employers in the United Kingdom must take the following procedures to obtain a sponsor licence:
Check to see if your firm qualifies.
Select the type of licence you require.
Determine who will be in charge of sponsorship in your company. This individual is usually the company's most senior person in charge of recruitment, which could be a company director or an HR manager. The Authorising Officer will be in charge of managing the SMS and ensuring that the sponsorship obligations are met once the licence has been granted.
A level 1 user must also be appointed. This person, who does not necessarily have to be the Authorising Officer, has access to the SMS (sponsor management system). This individual will be in charge of reporting any organisational changes as well as requesting and assigning CoS to migrant employees via SMS. The organization's first level 1 user must be a staff member or an officeholder.
Apply and pay the cost online. The application fees are determined by the size of your business as established by the Companies Act of 2006. The sponsor licence application price is £536 if you are a nonprofit or small company. The charge for a medium or big organisation is £1476.
What is the duration of my sponsor licence?
It will be active for four years, with a renewable option at the conclusion of the fourth year. Your licence may be revoked or cancelled if the Home Office has reasonable grounds for believing you did not fulfil your sponsorship obligations.
How long does it take to process a sponsor licence application?
The average time it takes to process an application is 8 weeks. During the processing period, the Home Office may come for a physical inspection of your office to confirm that you are fulfilling your sponsorship obligations. If you fail to establish that all sponsorship obligations were met during the visit, your application may be denied. Before submitting your application, our staff may undertake a compliance audit of your HR system to confirm that these responsibilities are being met and provide recommendations for any necessary changes.
Contact Global Talent Visas For Effective Support
Global Talent Visas is a multi-award-winning immigration consultancy and thousands of people have benefited from our services, and we have a 4.9/5 trust score based on thousands of reviews. We've been assisting clients in obtaining a Skilled Worker sponsorship licence (previously Tier 2 General) to equip them for the UK's withdrawal from the European Union since the launch of the Skilled Worker option.
We're dedicated to not just supporting you with your sponsor licence application, but also to ensure long-term compliance with all Home Office standards. We continue to be effective in building compliance procedures for sponsor licence holders, notwithstanding the Home Office becoming progressively rigorous about conformity. We provide total "hand-holding" guidance that provides peace of mind, certainty, and a superior result. All areas of sponsorship are covered by our services.