The problem, and when it usually appears
The sequence is almost always the same. An employer advertises, interviews, finds someone genuinely good, makes an offer, and only then discovers that the candidate needs sponsorship and the business holds no licence. By the time the licence is in place the candidate has taken something else.
The other version is an employer that does hold a licence but has not been maintaining it properly, and finds that out during a compliance visit rather than before one.
How sponsorship works, in order
Each stage depends on the one before it being done correctly.
- 01Employer
The employer gets licensed
UK Visas and Immigration assesses whether the business is genuine, actively trading and capable of meeting sponsor duties, then grants a licence.
- 02Employer
The employer assigns a Certificate of Sponsorship
A CoS is a digital reference number issued for one specific worker in one specific role. It is not a document and not a visa.
- 03Worker
The worker applies for the visa
Using the CoS reference number, with their own evidence on salary, English language and maintenance as the route requires.
- 04Both, ongoing
Compliance continues
Right-to-work checks, record keeping, reporting changes, and keeping pay at the required level in practice rather than only on the contract.
| Stage | Employer | Worker |
|---|---|---|
| Apply for the sponsor licence | Responsible | — |
| Receive licence approval | Responsible | — |
| Assign a Certificate of Sponsorship | Responsible | — |
| Apply for the visa | — | Responsible |
| Start employment | Both | Both |
| Ongoing compliance | Responsible | Follow visa conditions |
Defined or undefined: get this right first
There are two kinds of Certificate of Sponsorship and they are not interchangeable. Choosing the wrong one is among the most common causes of avoidable delay.
Defined CoS
- For a worker applying from outside the UK
- Requested individually for each worker
- Applied for through the Sponsorship Management System
- Typically decided quickly, often within a working day
Undefined CoS
- For a worker already in the UK, including switching routes
- Drawn from an annual allocation granted to the sponsor
- No separate approval step for each one
- Runs out if the allocation is not managed
What a licence requires
What the Home Office is assessing
- That the business is genuine and actively trading — company registration, bank statements, insurance and similar evidence.
- Named people responsible for sponsorship duties. An authorising officer who is accountable overall, a key contact for UKVI, and a level 1 user who runs day-to-day activity in the Sponsorship Management System.
- Systems that actually work for keeping records and tracking sponsored staff, not a policy document describing systems you do not have.
- That the role and the salary genuinely meet the route's requirements, including the correct occupation code.
- Sponsor licence — small or charitable organisation
- £611
- Sponsor licence — medium or large organisation
- £1,682
Home Office fee
Home Office fee
Home Office licence fees, correct as of June 2026. Fees change and this figure should be confirmed on GOV.UK before you apply. The immigration skills charge and the worker's own visa costs are separate.
The duties that continue after approval
Getting the licence is the start of the obligation rather than the end of it. Four duties account for most of what goes wrong.
- Right-to-work checks carried out before someone starts, not afterwards.
- Accurate records: payroll, contracts, qualifications and evidence of salary.
- Reporting relevant changes within ten working days — role, salary, work location.
- Keeping pay above the required threshold in practice, which means unpaid absence and reduced hours are reportable events rather than internal matters.
What happens if the Home Office finds a problem
Downgrade
Limited ability to sponsor
The licence is rated down and new sponsorship is restricted until an action plan is completed.
Suspension
No new certificates
No further Certificates of Sponsorship can be assigned while the Home Office investigates. Workers already sponsored are usually unaffected during this period.
Revocation
Loss of sponsor status
The licence goes, and the immigration status of workers you already sponsor is affected. This is the outcome the whole compliance framework exists to prevent.
What it costs to have this handled
Licence applications and CoS assignments are usually fixed-fee, quoted before the work starts. Compliance reviews, responses to a suspension and audit support are quoted with a written estimate first, because the scope depends on what the Home Office has raised. Where the work is charged by time the rate is €300 an hour, or £255 where the matter is billed in sterling, including VAT. Home Office fees are set by the government and are separate. The full published scale is on the fees page.
Common questions
Can I hire someone from abroad without a sponsor licence?
Not for most roles. A sponsor licence is required before a UK employer can employ most overseas workers, because without one you cannot assign the Certificate of Sponsorship the worker needs in order to apply.
What is the difference between a sponsor licence, a CoS and a visa?
The licence is permission for the employer to sponsor workers at all. A Certificate of Sponsorship is a reference number issued for one named worker in one named role. The visa is what the worker applies for, using that reference number together with their own evidence.
How long does a sponsor licence application take?
It depends on UKVI workload and whether priority service is used, and the published timescales move. Confirm the current position on GOV.UK, or ask, before you commit to a start date with a candidate.
Can a small business get a sponsor licence?
Yes. There is no minimum company size, and small and charitable organisations pay a lower fee. The eligibility criteria and the ongoing compliance duties are the same as for a large employer.
What happens if my licence is suspended?
You cannot assign new Certificates of Sponsorship while the Home Office investigates. Workers you already sponsor are usually unaffected during a suspension. What follows is either reinstatement, a downgrade with an action plan, or revocation.
What has to be reported, and how quickly?
Changes to a sponsored worker's role, salary or work location, within ten working days. Changes to the sponsor organisation itself, such as a change of ownership or address, are also reportable. Missed reports are one of the most common findings on a compliance visit.
This page states the law of England & Wales as at 18 August 2026. It is general information, not advice on your matter, and reading it does not create a solicitor-client relationship.
Legal research, SEO/GEO structure, localisation and editing: Veranika Rusakovich, Pensne Digital