UK Sponsor Licence and Certificate of Sponsorship (CoS): What Employers Need to Know
- Veranika Rusakovich
- Jul 7
- 6 min read
Updated: Jul 8
The Problem
Most UK employers cannot legally hire overseas workers without a Sponsor Licence. Many find a strong candidate, only to discover they don't yet hold one.
Key points:
A Sponsor Licence is required before most UK employers can hire overseas workers.
A Certificate of Sponsorship (CoS) is issued only after licence approval.
Employers remain responsible for compliance after sponsorship approval.
Why a UK Sponsor Licence Matters
This creates a direct barrier to international recruitment.
If nothing is done, this typically leads to:
Lost candidates. Good hires don't wait – they'll accept an offer elsewhere.
Unfilled roles. Vacancies stay open longer than they need to.
Compliance risk. If you already have a licence but aren't managing it properly, small mistakes can lead to Home Office action – including against employees you're already sponsoring.
The Solution
Most of this is preventable. At a high level, it comes down to four things:
Preparing a compliant licence application
Setting up HR and record-keeping systems
Assigning the right sponsorship roles internally
Ongoing monitoring of sponsored employees
These steps form the foundation of a compliant UK sponsorship system. Get them right from the start, and overseas hiring becomes a manageable, repeatable process rather than a risk.
What Is a UK Sponsor Licence?
A Sponsor Licence is required for most UK employers to hire overseas workers legally. It's permission from the Home Office, most commonly used to sponsor workers under the Skilled Worker route.
Without a Sponsor Licence, a UK employer cannot assign a Certificate of Sponsorship.
Who needs a Sponsor Licence?
UK employers hiring overseas workers;
companies recruiting Skilled Workers;
organisations sponsoring eligible visa routes.
How a UK Sponsor Licence Works, Step by Step
The process generally follows three stages:
1. The employer gets licensed. UKVI reviews the business and approves a Sponsor Licence.
2. The employer assigns a CoS. Once licensed, the employer issues a Certificate of Sponsorship – a digital reference number – for the specific worker and role.
3. The worker applies for their visa. The worker uses the CoS reference number to apply, alongside their own evidence.
Each stage depends on the previous one being completed correctly. A Certificate of Sponsorship is always required before a worker can apply for a Skilled Worker visa.
The table below shows which responsibilities belong to the employer and which belong to the sponsored worker throughout the process.
Stage | Employer | Worker |
Apply for a Sponsor Licence | Responsible | — |
Receive Sponsor Licence approval | Responsible | — |
Assign a Certificate of Sponsorship (CoS) | Responsible | — |
Apply for a Skilled Worker visa | — | Responsible |
Start employment | Both | Both |
Meet ongoing compliance requirements | Responsible | Follow visa conditions |
Two Types of Certificate of Sponsorship
Not all CoS are the same. There are two types:
Defined CoS – generally used when the worker is applying from outside the UK
Undefined CoS – generally used when the worker is already in the UK, for example switching from another visa
Employers usually hold an annual allocation of Undefined CoS, while Defined CoS are requested individually for each worker. Using the wrong type can cause delays or refusal.
Key Requirements for a UK Sponsor Licence
To get a licence, an employer generally needs:
Proof the business is genuine and actively trading (company registration, bank statements, insurance)
Named people responsible for managing sponsorship duties
Basic systems for record-keeping and tracking sponsored staff
There's also a fee, based on business size – currently £611 for small or charitable organisations, and £1,682 for medium or large ones (correct as of June 2026 – worth confirming before you apply).
Small and charitable businesses can apply for a Sponsor Licence — there's no minimum company size to be eligible.
Ongoing Responsibilities Under a UK Sponsor Licence
Getting the licence is just the start. Once approved, employers need to:
Carry out right-to-work checks before someone starts
Keep accurate records – payroll, contracts, qualifications, salary evidence
Report relevant changes (role, salary, location) within 10 working days
Keep pay above the required threshold, in practice, not just on paper
Learn more about Sponsor Licence Compliance and the ongoing duties employers must meet after obtaining a licence.
Common Mistakes With a UK Sponsor Licence
The same issues come up again and again:
Choosing the wrong CoS type
Picking the wrong job classification code
Missing the 10-working-day reporting window
Records that don't match what's actually happening day to day
What Happens If the Home Office Finds a Problem?
Non-compliance with sponsor duties can lead to serious Home Office action. These risks increase in severity depending on the level of non-compliance:
Downgrade – limited ability to sponsor new workers until issues are resolved
Suspension – temporary inability to assign new Certificates of Sponsorship
Revocation – loss of sponsor status, which can also affect the immigration status of employees already being sponsored
Revocation is the outcome employers most need to avoid.
For more on how the Home Office investigates non-compliance, see GOV.UK guidance on Sponsor Licence Suspension and Revocation.
How Zabulis Legal Can Help With Your UK Sponsor Licence
Many employers approach us after identifying a suitable overseas candidate, only to realise they cannot proceed because they do not yet hold a Sponsor Licence.
We help employers apply for Sponsor Licences, assign Certificates of Sponsorship correctly, and maintain ongoing compliance with Home Office requirements.
Why Choose Us
UK business immigration focus
Advice from a Solicitor of England & Wales
Support with sponsor licence applications and compliance
Assistance with Home Office audits and enforcement action
Speak to Our Team
We can assess your eligibility, prepare the Sponsor Licence application, draft supporting documents, and help you remain compliant after approval. Speak to our team if you are planning to hire overseas workers or have already identified a candidate and need a Sponsor Licence.
Frequently Asked Questions About UK Sponsor Licences
Can I hire someone from abroad without a UK Sponsor Licence?
No. A Sponsor Licence is required to employ most overseas workers in the UK.
What's the difference between a Sponsor Licence, a CoS, and a visa?
A Sponsor Licence allows an employer to sponsor workers. A Certificate of Sponsorship is issued for a specific worker. A visa is what the worker ultimately applies for, using the CoS reference number.
How long does a UK Sponsor Licence application take?
Processing times depend on UKVI workload and service type. Confirm current timeframes on GOV.UK or speak with us before planning around a specific date.
Can a small business apply for a UK Sponsor Licence?
Yes. Small and charitable organisations can apply and pay a lower licence fee, though the same eligibility and compliance requirements apply.
What happens if my Sponsor Licence is suspended?
A suspended licence means no new Certificates of Sponsorship can be assigned until the Home Office concludes its investigation. Existing sponsored workers are usually unaffected during this period.
This article is for general information only and does not constitute legal advice. Immigration rules and fees change frequently – always check GOV.UK or speak with us before acting.
Legally reviewed by: Vincentas Zabulis, LL.M (UCL), Solicitor (England & Wales), Managing Partner, Zabulis Legal.
Technical Compliance Reference
The section below is a condensed reference summary for HR teams, compliance officers, and advisers. It is not required reading to understand the article above.
Defined vs Undefined CoS
Feature | Defined CoS | Undefined CoS |
Applicant location | Outside the UK | Inside the UK (including switching) |
How allocated | Requested individually via SMS | Drawn from an annual allocation granted by UKVI |
Typical UKVI processing | Within one working day | Drawn from existing allocation, no separate approval step |
Ключевые роли в Sponsor Management System (SMS)
Authorising Officer – senior person accountable for overall sponsor compliance
Key Contact – primary point of contact with UKVI (can be the same person as the Authorising Officer)
Level 1 User – manages day-to-day SMS activity; must be employed by or contracted to the sponsor
Appendix D record-keeping – core categories
Right-to-work documents
Payroll records
Contracts of employment
Copies of relevant professional qualifications
Evidence supporting the salary and SOC code decision
Sponsor licence fees (as at 16 June 2026)
Sponsor type | Fee |
Small or charitable | £611 |
Medium or large | £1 682 |
Immigration Skills Charge (as at 16 June 2026)
Sponsor type | Rate per year of sponsorship |
Small or charitable | £480 |
Medium or large | £1 320 |
Civil penalties for illegal working (as at 16 June 2026)
Breach type | Maximum penalty per worker |
First breach | £45 000 |
Repeat breach | £60 000 |
Note: All figures are subject to change. Confirm current rates on GOV.UK before relying on them.
Sources and Official Guidance
Changelog
7 July 2026: Confirmed sponsor licence fees, Immigration Skills Charge, and civil penalty figures as at 16 June 2026.
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