After the end of the Brexit transition period, many businesses in the UK are finding it harder to hire staff from the settled workforce. This is especially true for companies owned by Tier 1 Entrepreneurs or Sole Representatives who need to recruit employees from outside the UK. These businesses are now looking at sponsorship licenses to hire workers from overseas. This guide explain in details on Sponsor Licence for Tier 1.
If you’re a Tier 1 Entrepreneur and you can’t recruit from the settled workforce, you may still be able to apply for a sponsor license to hire non-settled workers. Here’s a simple guide to help you understand what this means for your business.
Key Requirements for a Sponsor Licence
When you apply for a sponsor license, you must show that your company is actively trading and has the correct documentation. This includes:
- VAT Certificate or proof of VAT registration
- Evidence of a business bank account
- PAYE registration details
- A lease agreement for business premises
- Proof of employer’s liability insurance
You will also need to choose key personnel who will manage the sponsor license. These roles include:
- Authorising Officer
- Level 1 User
- Key Contact
These individuals will help you manage the sponsor license, report to UK Visas and Immigration (UKVI), and ensure compliance with immigration rules.
1. Authorising Officer
The Authorising Officer is usually the senior-most person in charge of recruitment in your company. This person oversees the activities related to the sponsor license but does not automatically have access to the Sponsorship Management System (SMS). If the Authorising Officer needs access to SMS, they will need to assign themselves as a Level 1 User.
This role must be filled at all times, and the license is only valid as long as the Authorising Officer is in place. If the Authorising Officer leaves, the Home Office may take action, including suspending your sponsor license.
2. Level 1 User
The Level 1 User handles the day-to-day tasks related to the sponsor license. This includes:
- Assigning Certificates of Sponsorship (CoS) to migrants
- Reporting any changes in the worker’s circumstances or the company’s status to UKVI
Only Level 1 Users can access the SMS, and it is recommended to have at least two Level 1 Users in case one is unavailable.
3. Key Contact
The Key Contact is the main person responsible for communication between the Home Office and your company. This person will receive updates from UKVI and ensure that your company responds to any requests or inspections.
Who Can Fill These Roles?
For all three roles (Authorising Officer, Level 1 User, and Key Contact), the following rules apply:
- The person must be based in the UK for the duration of their role.
- They must not have any unspent criminal convictions.
- They must be a paid employee of the company or an officeholder.
For Level 1 Users, at least one must be a settled worker (a person with indefinite leave to remain in the UK). However, Tier 1 Entrepreneurs or other non-settled migrants can still take on these roles if necessary, as long as their UK status remains valid.
Can Tier 1 Entrepreneurs Be the Authorising Officer?
Yes, Tier 1 Entrepreneurs can apply for a sponsor license and appoint themselves as the Authorising Officer and Level 1 User if they cannot appoint any settled workers to these positions.
However, there’s an important condition: your sponsor license is only valid as long as your UK status is valid. For example, if you’re a Tier 1 Entrepreneur and your visa expires, you must replace yourself as the Authorising Officer with someone who has settled status. If you fail to do so, your sponsor license could become invalid, which could affect the visas of any workers you sponsor.
Job Creation Requirement for Tier 1 Entrepreneurs
As part of your Tier 1 Entrepreneur visa requirements, you must create two full-time jobs for settled workers during your stay in the UK. You cannot count your sponsored migrants towards this requirement.
If you plan to extend your Tier 1 Entrepreneur visa or apply for Indefinite Leave to Remain (ILR), these jobs must be in place for at least 12 months. Therefore, it’s important to remember this requirement when making hiring decisions.
What If You Need to Recruit Overseas Workers?
If you are a Tier 1 Entrepreneur or Sole Representative migrant and need to hire overseas workers, you can still apply for a sponsor license. The process can be complex, especially if you need to fill key roles like the Authorising Officer or Level 1 User with non-settled workers.
If you need help navigating the sponsor license application process or if you’re unsure about your responsibilities, Law and Visas can guide you through the application and ensure compliance with UK immigration rules. Contact us today for tailored advice on your sponsor license needs.
How Law and Visas Can Help?
At Law and Visas, our team of expert immigration consultants is here to make your travel to the UK straightforward and successful. Whether you’re applying for a Unmarried Partner Visa UK or an Immigrant Investor Visa, we handle every step—from preparing your application to gathering the required documents.
Our immigration lawyer consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process, coordinating with the immigration office or embassy on your behalf.
Law and Visas has a strong record of helping clients secure the visas and permits they need for international travel. Call us today at +234 812 5505 986 to learn how we can assist you.
