5 Common Mistakes in UK Sponsor Licence Applications

Obtaining a UK Sponsor Licence is an important step for businesses that want to hire skilled non-EEA workers for key roles. It can help your company grow and stay competitive, especially in industries like technology, finance, healthcare, and hospitality.

However, getting a Sponsor Licence is not guaranteed, and many businesses make mistakes during the application process. These mistakes can lead to delays or even refusal of the license, wasting both time and money. Below are five common mistakes employers make when applying for a Sponsor Licence, along with tips on how to avoid them.

1. Failing the Genuineness Test

Since 2015, businesses applying for a Sponsor Licence must pass the Genuineness Test. This test checks whether the job you want to sponsor is legitimate and whether your reasons for hiring a non-EEA worker are valid. To pass this test, you need to prove:

You have a skilled vacancy that needs to be filled now or shortly.
The job is listed in the official Skilled Occupation List.
You will pay the worker a salary that meets the UKVI’s standards for that job.
You know how to conduct and comply with the Resident Labour Market Test (RLMT) to show that no suitable UK worker could fill the role.

Tip: Make sure you have clear and convincing evidence for each of these points in your application.

2. Missing Documents

One of the most common mistakes is failing to include all required documents. Missing documents can delay your application or lead to a refusal. As a general rule, businesses applying for a Sponsor Licence need to provide at least four supporting documents. Some examples include:

Franchise businesses must provide a Franchise Agreement.
Start-ups (businesses trading for less than 18 months) need to show evidence of their corporate bank account and VAT registration.
If sponsoring a Tier 2 (Intra-Company Transfer) worker, provide an affidavit from a senior executive identifying all connected entities in the UK and overseas.

Tip: Double-check the required documents and seek help from an immigration solicitor to ensure everything is included.

3. Not Being Prepared for a Compliance Visit

After you apply, the Home Office may visit your business to check if you’re following all immigration rules. They will look at:

Whether your business is legitimate.
Whether your HR systems can track and report on sponsored employees’ attendance, contact details, and Right to Work status.
Whether you have illegal workers on site.
Whether your business can meet all the record-keeping and reporting requirements.

Tip: Have solid plans in place for compliance, including HR systems that can track employee information and ensure you are always following the rules.

4. Choosing the Wrong Support Staff

When you apply for a Sponsor Licence, you must designate individuals to access and manage the Sponsor Management System (SMS)—the online system used to track and report on sponsored workers. These people must:

Be trustworthy, with no criminal record.
Be full-time employees of your company.
Be people you trust to stay with the company for a long period.

Tip: Consider making your immigration solicitor part of your key personnel to manage the SMS. They can help ensure you remain compliant and stay up-to-date with any changes to immigration law.

5. Thinking the Application is the End of the Process

Once you’ve applied and received your Sponsor Licence, your job isn’t done. You must continue to comply with all rules and regulations to keep your license active. If you fail to do so, your license could be downgraded, suspended, or revoked. This could mean that you can no longer sponsor non-EEA workers, and any workers you have already sponsored might have to leave the UK unless they find another sponsor.

Tip: Set up strong HR systems from the start to ensure ongoing compliance with your Sponsor Licence duties. Be prepared for regular audits and compliance checks from the Home Office.

Why Choose Law and Visas for Your Sponsor Licence Application?

At Law and Visas, we specialize in helping businesses navigate the complexities of the Sponsor Licence application process. Our experienced immigration lawyers can help you avoid these common mistakes, ensure your application is complete, and assist you in staying compliant once your license is granted.