What is a Sponsor Licence?
A sponsor licence enables UK employers to engage overseas workers under the Skilled Worker visa route and also other sponsored visa categories. A licence will provide one with the opportunity to take on critical skill gaps that come from outside the country and global talents, thereby having multiple workforces.

Who Needs a Sponsor Licence?
You need a licence for sponsorship if:

You intend to hire individuals who are non-UK or non-Irish nationals who do not have settled or pre-settled status under the EU Settlement Scheme.  
You wish to sponsor workers in the Skilled Worker, Global Business Mobility, or Temporary Worker visa routes. 
Eligibility Requirement
To apply for a licence as a sponsor, an organisation must:

Be Registered and Operating in the UK: You must have a legal presence, such as a registered office.
Have Adequate HR Systems: Show healthy systems to keep records of the workers, including their attendance and right to work in the UK.
Not Have Been Found Guilty of Non-Compliance: Never been fined because of immigration non-compliance or earlier revocation of a sponsor licence.
Moreover, you will need to appoint some key personnel, including:

Authorising Officer: The officer responsible for the management of the licence
Key Contact: The contact who will deal directly with the UKVI.
Level 1 User: The user will manage the SMS.
Application Process
To apply for a sponsor licence, follow these steps:

Select the Licence Type

Skilled Worker licence
Temporary Worker licence
Both of the above
Gather Supporting Documentation Supporting documentation will be required to demonstrate that your organisation is genuine. Examples of documents to support this include, but are not limited to:

Certificate of incorporation
Proof of business bank account
Audited accounts or other financial evidence
Evidence of HR systems
Submit Online Application

Your application is submitted via the UKVI online portal.
The application fee is paid at submission-small businesses and charities: £536; medium/large businesses: £1,476.
UKVI Assessment

UKVI may conduct a compliance visit to assess your HR systems and ensure adherence to sponsorship duties.
Decision

UKVI aims to process applications within 8 weeks. Fast-tracked processing (10 days) is available for an additional fee.
Post-Approval Obligations
Once granted, your sponsor licence comes with responsibilities:

Compliance Duties: Maintain accurate employee records, including visa expiry dates.
Annual Renewals: Renew your licence before expiry to retain sponsor status.
Reporting Requirements: Inform UKVI about major changes, for instance, when an employee leaves or if the structure of the business changes.
Common Reasons for Application Refusals
Avoid pitfalls such as:

Providing incomplete/inadequate or incorrect documents.
Failure to show genuine need for a sponsor licence.
Previous history of non-compliance with immigration laws.
Final Thoughts
Securing a sponsor licence is a significant step towards building a global workforce. However, the process requires meticulous preparation and adherence to UKVI guidelines. Consider seeking professional legal advice to improve your chances of success and ensure ongoing compliance with sponsorship duties.

Need Help with Your Sponsor Licence Application?
At ICS Legal, we help businesses with sponsor licence applications, making the process less painful. Contact us today to get started!