If you want to hire someone in the UK who isn’t a British or Irish citizen, you’re entering the UK sponsorship system, and it places real obligations on you, not just your candidate. Some of those obligations are one-time; others persist for as long as the person works for you.
This guide is written for employers: HR leads, founders, and ops managers who have a candidate they want to hire and need to understand what’s required on their side. It covers when you need a sponsor licence, how to get one, what it costs, what your ongoing duties are, and what to do if you don’t have a UK entity yet.
Who can work in the UK without employer sponsorship
Not every international hire requires you to do anything from an immigration standpoint. A significant portion of candidates can work freely in the UK, and for those people, you have no sponsorship obligations at all.
Your candidate can work in the UK without any action from you if they hold any of the following:
| Status | What it means for you |
|---|---|
| British or Irish citizenship | No checks required beyond standard right-to-work verification |
| Settled status (EU Settlement Scheme) | Full right to work, no expiry to monitor |
| Pre-settled status (EU Settlement Scheme) | Right to work for the duration of their status. Set a follow-up check before it expires. |
| Graduate visa | Can work for any employer at any skill level for 2 years (or 18 months from January 2027 for new applications) |
| Youth Mobility Scheme visa | Can work most jobs for up to 2 years with no sponsorship required from you |
| Global Talent visa | Can work without a job offer or sponsorship. Settlement is possible in 3 or 5 years. |
If your candidate holds any of these, you can hire them without a sponsor licence. You still need to carry out right-to-work checks (see the section on that below), but you don’t need to become a licensed sponsor.
When you need a sponsor licence
If your candidate doesn’t fall into one of the categories above and needs a work visa to legally work in the UK, you almost certainly need to hold a sponsor licence before they can start.
The main route requiring employer sponsorship is the Skilled Worker visa. Without a sponsor licence, you cannot issue the Certificate of Sponsorship (CoS) that the candidate needs to apply. Without a CoS, they cannot get the visa. The licence is the entry point for the whole chain.
Other routes that require you to hold a licence include the Health and Care Worker visa and the Senior or Specialist Worker visa (for intra-company transfers under the Global Business Mobility routes).
How to get a UK sponsor licence
Applying for a sponsor licence means demonstrating to the Home Office that your organisation is genuine, operating lawfully, and capable of meeting its sponsorship obligations. The application is not a formality.
What the application requires
You’ll need to submit an online application and provide supporting documents to prove your organisation exists and is actively trading. The Home Office publishes a list of acceptable evidence, which typically includes employer liability insurance certificates, bank statements, HMRC registration records, and evidence of your premises. The exact documents required vary depending on your business type.
You’ll also need to appoint key personnel within your organisation to manage the licence: an Authorising Officer (a senior person accountable for the licence), a Key Contact (your main point of contact with the Home Office), and Level 1 Users (the people who will use the Sponsorship Management System day to day). These can overlap, and the same person can hold multiple roles in a small organisation.
Costs
The application fee depends on your organisation size:
| Organisation type | Licence fee |
|---|---|
| Small or charitable sponsor | £536 |
| Medium or large sponsor | £1,476 |
HMRC’s definition of “small” is used: broadly, fewer than 50 employees and annual turnover under £10.2 million, or balance sheet under £5.1 million. Two of three criteria must apply.
Timescales
Standard processing takes up to 8 weeks. If you need the licence faster, a priority service is available for an additional fee and typically processes in 10 working days, but availability is limited.
A-rating vs b-rating
Licences are issued as A-rated or B-rated. An A-rated licence is the standard grant and allows you to sponsor workers normally. A B-rating means the Home Office has concerns about your compliance and requires you to follow an action plan to restore A-rated status. You cannot assign new Certificates of Sponsorship while on a B-rating until the issues are resolved.
Your ongoing obligations as a licensed sponsor
Getting the licence is the start, not the finish. Once you hold a sponsor licence, you take on a set of legal duties that run for as long as you’re sponsoring workers, and the Home Office can check your compliance at any time.
Record-keeping
You must maintain accurate, up-to-date records for every sponsored worker. This includes their contact details, right-to-work documents, evidence of their role and salary, and copies of their visa documentation. Records must be accessible and kept for the duration of their sponsorship (and typically for at least one year after it ends).
Reporting duties
You must report certain events to the Home Office through the Sponsorship Management System within specified timeframes, usually 10 working days. Reportable events include:
- A sponsored worker not starting their job within the expected timeframe
- A sponsored worker’s employment ending before their visa expires
- Significant changes to a sponsored worker’s role, salary, or working hours
- A sponsored worker going absent without authorisation
Compliance visits
The Home Office can visit your premises, announced or unannounced, to verify that you’re meeting your obligations. Inspectors will check your records, speak to staff, and assess whether your HR systems are fit for purpose.
Consequences of non-compliance
If you fail to meet your obligations, the Home Office can downgrade your licence from A to B (triggering a mandatory action plan), suspend it (stopping you from assigning new CoS), or revoke it entirely. Revocation affects every worker you currently sponsor: they lose the basis of their visa and must find a new sponsor or leave the UK. That is a serious outcome for your employees and a significant legal and reputational risk for your organisation.
The certificate of sponsorship: what it is and how to issue one
A Certificate of Sponsorship (CoS) is not a physical document. It is an electronic record created in the Home Office’s Sponsorship Management System, assigned a unique reference number. Your candidate uses that number when submitting their visa application.
The CoS contains key information about the role: the job title, SOC code, salary, working hours, start date, and the sponsor’s licence number. The details must be accurate, because discrepancies between the CoS and the candidate’s application can lead to refusal.
Defined vs undefined cos
There are two types, and which one you use depends on where your candidate is applying from:
| CoS type | When to use it |
|---|---|
| Defined CoS | Candidate is applying from outside the UK |
| Undefined CoS | Candidate is already in the UK and switching visa categories |
Defined CoS certificates must be requested from the Home Office, and there is an annual allocation system. Undefined CoS certificates can be assigned directly from within the Sponsorship Management System without a prior request, subject to the number assigned to your licence.
There is a fee for each CoS you issue: currently £239 per certificate.
Salary and eligibility requirements for sponsored workers
Before you can sponsor someone on the Skilled Worker route, their role and salary must meet specific thresholds. Getting this wrong at the CoS stage means the application will be refused.
The salary floor
The general minimum salary for a Skilled Worker is £41,700 per year, or the “going rate” for the specific occupation, whichever is higher. The going rate is set per Standard Occupational Classification (SOC) code and published by the Home Office. You need to check both figures and pay the higher one.
Occupation eligibility
The role must be classified at RQF Level 3 or above (broadly equivalent to A-level standard) and must appear on the Home Office’s list of eligible occupations. Not every job qualifies.
Reduced thresholds
Certain categories of worker can be sponsored at lower salary levels:
- New entrants (workers under 26, recent graduates, or those switching from a Student visa): the threshold reduces to £30,960
- Shortage occupations: a 20% discount on the going rate applies for roles on the Immigration Salary List
- PhD-level roles: a reduction applies to roles where a relevant PhD is normally required
These discounts apply to the going rate, not to the general £41,700 minimum. You should verify which thresholds apply to each specific role before issuing a CoS.
Right-to-work checks: your legal obligation
Every UK employer must check that every employee has the right to work before they start. This is not just a requirement for companies that sponsor visas. It applies to every hire, regardless of nationality.
Fines for employing someone without the right to work reach up to £60,000 per illegal worker. Employers who knew, or had reasonable cause to believe, the worker had no right to work can also face criminal prosecution and imprisonment.
How to carry out checks
You have two options:
Manual checks: Review original documents (passport, biometric residence permit, or other accepted evidence) and make copies dated on the day of checking.
Home Office online service: For workers with biometric residence permits, eVisas, or other digital immigration status, you must use the Home Office’s online right-to-work checking service. Manual checks on these workers no longer provide a statutory excuse.
Follow-up checks
For workers with time-limited visas, including your sponsored workers and anyone on a Graduate, Youth Mobility, or pre-settled status, you must carry out a follow-up check before their current permission expires. If you miss this window and their visa has expired without renewal, you have lost the statutory excuse against a fine.
Keep a dated copy of every check, at every stage.
Visa routes that matter to employers
Understanding which visa your candidate holds or needs determines what you need to do, or whether you need to do anything at all.
Skilled worker visa: requires sponsor licence and cos
The primary sponsored route. Your candidate needs a job offer in an eligible occupation at or above £41,700 (or the relevant going rate, if higher). You must hold a sponsor licence and issue a CoS before they can apply. Visas are granted for up to 5 years and are renewable. This route leads to Indefinite Leave to Remain after 5 years.
Health and care worker visa: faster and cheaper than skilled worker
A subset of the Skilled Worker route for doctors, nurses, paramedics, social workers, and senior care workers employed by the NHS, an NHS supplier, or the adult social care sector. The same sponsorship and CoS requirements apply, but application fees are lower, processing is faster, and workers are exempt from the Immigration Health Surcharge. If you’re recruiting into healthcare roles, this route is the one to use.
Senior or specialist worker (global business mobility): for intra-company transfers
Designed for overseas employees you’re transferring to a UK branch, subsidiary, or affiliate. You need a sponsor licence for this route. The worker must have been employed by your overseas entity for at least 12 months (in most cases) and must be moving into a senior manager or specialist role. There is no minimum salary as such, but the role and pay must meet Home Office criteria.
Graduate visa: no employer action needed
Graduate visa holders completed a UK degree and can work for any employer without sponsorship for 2 years (or 18 months if they apply on or after 1 January 2027). You cannot extend a Graduate visa, but the worker can switch to the Skilled Worker route from within the UK if you’re willing to sponsor them before it expires.
Youth mobility scheme: no employer action needed
Young people (18 to 30, or up to 35 for some nationalities) from participating countries can live and work in the UK for up to 2 years with no employer sponsorship required. They can work in most jobs. Like Graduate visa holders, they can switch to the Skilled Worker route from within the UK if they secure sponsorship.
Global talent visa: no employer action needed
Recognised leaders and emerging talent in academia, research, arts, or digital technology can hold this visa without a job offer or sponsorship. Settlement is possible after 3 years (for endorsed leaders) or 5 years (for endorsed promise holders). If your candidate already holds a Global Talent visa, you can hire them without any immigration action on your part.
Hiring in the UK without a UK entity
You cannot hold a sponsor licence without a UK presence. The Home Office requires applicants to have a registered UK entity, a branch, or a demonstrable place of business in the country. If you’re a foreign company without a UK subsidiary, you are not eligible to apply.
Setting up a UK entity is an option, but it takes time (typically several weeks for company registration, longer to establish payroll and employment infrastructure) and creates ongoing regulatory and tax obligations even if your UK headcount is small.
The practical alternative is an Employer of Record (EOR). An EOR is a UK-registered company that employs your worker on your behalf. The EOR holds the sponsor licence, issues the CoS, manages payroll, and handles right-to-work compliance. You direct the worker’s day-to-day activity. For companies that want to hire one or a few people in the UK without building local infrastructure, this is frequently the faster and more cost-effective path.
RemotePass offers EOR services with visa sponsorship support in the UK and over 150 countries from a single platform. Book a RemotePass demo to see how it works.
FAQs
How long does it take to get a sponsor licence?
Standard processing takes up to 8 weeks from the date the Home Office receives your complete application. A priority service, available for an additional fee and subject to availability, typically processes in 10 working days. Neither timeline is guaranteed.
How much does a sponsor licence cost?
The application fee is £536 for small or charitable organisations and £1,476 for medium or large organisations. On top of that, each Certificate of Sponsorship costs £239. You’ll also pay an Immigration Skills Charge for each sponsored worker: currently £364 per year for small sponsors and £1,000 per year for medium and large sponsors.
Can we hire someone on a Graduate visa without sponsoring them?
Yes. Graduate visa holders can work for any employer without sponsorship. You don’t need a sponsor licence, and you don’t need to issue a CoS. You do need to carry out a right-to-work check and set a follow-up reminder before their visa expires, since the Graduate visa cannot be extended. If you want to keep them on after their Graduate visa ends, you’ll need to sponsor them on the Skilled Worker route before that happens.
What happens if we lose our sponsor licence?
If the Home Office revokes your licence, every worker you currently sponsor on that licence loses the basis for their visa. They typically have 60 days to find a new licensed sponsor or leave the UK. This is a significant disruption for them and a serious reputational and legal risk for you. Maintaining compliance with your record-keeping and reporting duties is the most reliable way to avoid this outcome.
What are the penalties for failing right-to-work checks?
Employers face civil penalties of up to £60,000 per illegal worker where the employer did not carry out a correct check. Where the employer knew the worker had no right to work, criminal prosecution is possible, with potential imprisonment. Carrying out checks correctly and keeping dated copies creates a statutory excuse that protects you even if a worker later turns out to have fraudulent documents.
Can a foreign company sponsor a UK work visa without a UK entity?
No. The Home Office requires a UK presence to grant a sponsor licence. A foreign company with no UK entity cannot apply. If you want to hire someone who needs sponsorship and you don’t yet have a UK entity, an Employer of Record is the practical route. The EOR holds the licence and employs the worker legally while you manage their work.
