As the eligibility criteria to apply for a sponsor licence do not restrict applications to firms of a particular size or annual revenue, most businesses can apply to the Home Office to sponsor skilled employees from abroad. However, if your company is classified as a startup, the sponsor licence application rules stipulate that you must submit different supporting documents than a non-startup business. 

What kind of business can be categorised as a start-up?

In a sponsor licence application, the Home Office's definition of a start-up business is used.

The Home Office defines a start-up business as one that has been trading or operating in the UK for less than 18 months at the date of its sponsor licence application. The Home Office's definition of a start-up business is not affected by the number of employees, the amount of your turnover, or a company director’s previous successful history of operating a company in the UK.

What documents need to submit?

The Home Office is willing to accept that Start-ups may not be able to provide the usual suite of documents required as part of the sponsor licence application, as it is unlikely that a company with a short trading history will have documents such as audited financial statements and commercial leases. Therefore, there is some flexibility in terms of what can be provided in place of these.

Mandatory Document

Start-ups will be required to provide evidence that they have a registered corporate bank current account with the Financial Conduct Authority (the "FCA") and the Prudential Regulation Authority (the "PRA"). While the majority of financial service providers in the United Kingdom are registered with both the Financial Conduct Authority and the Prudential Regulation Authority, foreign-funded start-ups may occasionally fail to comply with this requirement.

Additional Documents

In addition to the bank account evidence, your startup business must submit at least three additional supporting documents when applying for a sponsor licence. If your company is not subject to industry- or sector-specific rules regarding the exact documentation required, you can contemplate submitting the following documents:

• A certificate of employer's liability insurance (which must cover at least £5 million and be issued by an FCA-approved insurer)
• The latest available audited or unaudited annual accounts provided by the accountant who prepared them has included their details and is a member of an accredited regulatory body
• Latest available company tax return
• HMRC certificate of VAT registration
• HMRC letter with PAYE and accounts office reference number
• Lease agreement

Industry- and sector-specific documentation for a startup's sponsor licence application

The industry- and sector-specific documentation required for a startup business to apply for a sponsor licence is highly dependent on the industry and sector. On your first application for a Sponsorship Licence, it is advisable to seek legal advice from a specialised immigration lawyer. Examples of specific documentation needs include:

• Documents for regulated industries, such as those for financial service providers or care home businesses
• For pubs and licensed premises- alcohol licence;
• For franchise businesses, the signed franchise agreement

Home Office Assessment on the Sponsor Licence Application

The Home Office will check the following when assessing your start-up sponsor licence application:

• Whether there is a human resource system in place to meet your sponsor duties;
• Whether they are able to conduct an immediate and unannounced compliance check to ensure sponsor duties are being complied with;
• Whether there is any evidence of previous non-compliance by you;
• Whether your organisation is able to offer genuine employment;
• That the job meets the correct skilled level and salary requirements as set out in the Immigration Rules;
• Whether any of the key personnel within the business have an unspent criminal convictions for a relevant offence;

Once you are granted your sponsor licence, which is valid for four years, you can start issuing certificates of sponsorship to new migrant workers. The migrant worker will then submit an application for a skilled worker visa to enable them to start their sponsored employment with your company.

It is extremely difficult to establish a new business and make it successful by employing the best personnel. Because of this, we will guide you through the sponsor licence application process to ensure that you are confident that a sponsor licence application is the best route for your business and that you understand why the preparation work you put into your systems and the appointment of key personnel will pay off in the long run.



For expert advice and assistance in relation to a Sponsor Licence application or a Skilled Worker application, contact us on 02023 865 6219 or leave a message.