As the UK ends the freedom of movement, many businesses are finding it harder to hire workers from within the UK. As a result, more companies are looking into applying for a sponsor license to hire workers from abroad. Some businesses are owned by British citizens or settled workers, while others are run by non-settled individuals, such as Tier 1 Entrepreneur migrants or Sole Representative migrants.
If you are a Tier 1 Entrepreneur and want to apply for a sponsor license, you’ll need to meet certain requirements. This article explains how non-settled business owners, such as Tier 1 Entrepreneurs, can apply for a sponsor license.
What Are the Requirements for a Sponsor Licence?
To apply for a sponsor license, your business must show that it is active and trading in the UK. You will need to provide documents like:
- A VAT certificate
- Proof of a business bank account
- Evidence of PAYE registration
- Lease agreement for business premises
- Employer liability insurance details
You will also need to nominate people for key roles like the Authorising Officer, Key Contact, and Level 1 User. These roles are important for managing the sponsor license. Here’s a breakdown of each role:
Key Roles for Sponsor Licence Management
- Authorising Officer
- This person is usually the senior-most individual in the company, responsible for overseeing recruitment and ensuring compliance with the sponsor license.
- They are not automatically given access to the Sponsorship Management System (SMS) but can add themselves as a Level 1 User if needed.
- The Authorising Officer must remain in position for the full duration of the sponsor license, which lasts for 4 years. If the Authorising Officer leaves, the company risks action from the Home Office.
- Level 1 User
- The Level 1 User handles the day-to-day management of the SMS, including assigning Certificates of Sponsorship (CoS) to migrants and reporting any changes to the Home Office.
- At least two Level 1 Users are recommended, to ensure someone is always available.
- Key Contact
- The Key Contact is the main point of communication between the company and the Home Office.
Who Can Fill These Key Roles?
The individuals appointed as Authorising Officer, Key Contact, and Level 1 User must meet certain requirements:
- They must be based in the UK while holding their roles.
- They must not have any unspent criminal convictions.
- They must be a paid employee of the company or hold an official position.
For Level 1 Users, one of them must be a settled worker, unless they are an international diplomat or hold a specific immigration status, such as:
- Representative of an Overseas Business
- Tier 1 (Graduate Entrepreneur)
- Tier 1 (Entrepreneur)
- Tier 1 (Exceptional Talent)
- Start-up or Innovator migrant
- Global Talent migrant
Key Points for Tier 1 Entrepreneurs
- Licence Validity Depends on Your UK Status
- If you are a Tier 1 Entrepreneur, you can apply for a sponsor license and act as the Authorising Officer and Level 1 User if you don’t have any settled staff to fill these roles.
- However, if your UK immigration status expires, the sponsor license’s validity will also depend on your status. For example, if your entrepreneur status expires before the sponsor license is due to renew, you must replace yourself as the Authorising Officer to keep the license valid.
- Job Creation Requirements
- As a Tier 1 Entrepreneur, you must create at least 2 full-time jobs for settled workers to qualify for an extension or settlement in the UK.
- You cannot count your sponsored migrants toward this job creation requirement, so make sure you are meeting these obligations for future visa extensions.
Need Help with Your Sponsor Licence?
If you are a Tier 1 Entrepreneur or Sole Representative migrant and want to hire overseas workers, Law and Visas can help you with a tailored approach to your sponsor license application. Get in touch with us for professional advice on how to move forward.
