How Does a Company Apply for a Sponsor Licence?

In the modern economy, organizations often require sourcing candidates from outside the UK to meet the available skill needs and remain competitive in business practices. In order to achieve this, a more advanced approach of recruiting foreign national talents has to be adopted in which the organization has to first obtain a Sponsor Licence. This document explains the process that every company should follow in order to successfully apply for a sponsor licence and commence the employment of foreign workers.

Comprehending Sponsor Licensing

A Sponsor licence is an official document that any employer based in the UK and wishing to employ immigrants on various categories like Skilled Worker W2 visa must obtain. Otherwise, any other person who is outside the UK and does not have actual working rights in the UK cannot be employed by the company without them. Upon approval of the licence, the business is free to issue Certificates of Sponsorship (CoS) to any foreign worker they wish to employ for the purposes of obtaining specific visas for those individuals.

 3. Apply for a License to Sponsor Foreign Workers
 First off, assess the eligibility
 Application for the sponsorship licence must be preceded by the assessment of the company’s eligibility to be a sponsor. The relevant authorities in the UK have strict protocols in place to determine the credibility of the companies and their ability to comply with the immigration laws when they need to hire foreign workers.

A business meets the criteria if: –

It is operating legally in the UK.
It has sound HR and recruitment systems to handle the sponsored employees.
It had not had its sponsor licence in the previous 12 months.
In addition, the companies must also designate internal personnel to handle the processes of sponsorship. Such roles include an Authorising Officer (who oversees compliance), a Key contact (the officer dealing with UK Visas and Immigration), as well as a Level 1 User (who deals with daily operations on the sponsor management system). They may be existing personnel, however, all of them must undergo vetting in order to be deemed eligible for the roles.

2. Collect All the Applicable Documents
After that, one must turn on her or his internal processing unit and start looking for all the documents, which are required for the application, including the attachment. The UK Visas and Immigration (UKVI) authority demands from applicants a number of documents which are meant to prove the company’s existence as well as its capabilities for the fulfillment of its sponsorship obligations. These documents are normally as follows:

License to practice i.e. registration with the governing authorities (if necessary).
Public indication of operational activity e.g. VAT certificate or business bank statements.
Documentation of staff management strategies directed at tracking and controlling the activities of the sponsored personnel.

However, companies are required to submit four pieces of documentary evidence as a minimum with their application although the precise requirements will vary with the type of business and the categories of workers sponsored.

Completion of the Application Form for a Visa
Following the preparation of the necessary documentation, the company is required to make an application on the UKVI website. The information is required in relation to the business, its structure, how it operates and what types of positions it plans to offer sponsorship. The applicant must therefore exercise caution as any misleading or incomplete information may prolong or even beat the purpose of applying for the license.

At this juncture, the firm will also be required to incur the requisite application fee. The fee that one is required to pay for a sponsor licence application does vary with size;

For Small or charitable organisations, it is £536.
For Medium to large business it is £1,476.
These fees once paid are non-refundable so business entities should strive to have their applications correct and ready before the lodgment.

4. Wait For The UKVI To Come Back With A Decision
As soon as the application has been made, the UKVI has a duty to process the information and documents submitted. In the case of new applicants, they may also conduct a compliance assessment visit. This is where they will check if the firm has systems and processes in place to meet the sponsors’ responsibilities.

The determining of the application usually takes about eight weeks although businesses have an option of paying an extra amount for a faster service that will take 10 working days to give a decision. On this license being granted to the applicant company; a sponsor license valid for four years is issued. Within this period, the organization shall commence to issue Certificates of Sponsorship to foreign nationals.

Assign Certificates of Sponsorship (CoS)

Upon receiving the sponsor license, the employer will be able to begin granting the Certificates of Sponsorship to any persons they wish to employee in their establishment. Each CoS is a distinct reference number that a worker will be required to include in his or her copyright. It is very important for organizations to be careful and precise with information on each CoS because variations may cause refusal of visas or problems with the sponsor licence.

There are two types of CoS that businesses can assign:

Defined CoS: For workers applying from outside of the UK.
Undefined CoS: For workers already in the UK, such as those on different types of visas.
With regards to the CoS assigned, the business is charged a fee for each CoS assigned – £199 for skilled workers and £21 for temporary workers.

6. Meet Ongoing Sponsorship Obligations

A sponsor license comes with some cost. The cost is the liabilities that should be dealt with during the entire period of holding a sponsor license. Each and every company has to ensure that their sponsored employees are kept in check and that they report to UKVI any changes in status like engaging in different employments with different salary levels or working hours. Failure to comply with these obligations may lead to monetary penalties or worse, the license being suspended or completely withdrawn.

Businesses must also renew their licence every four years, and they must continue to demonstrate that they comply with UKVI's sponsorship requirements. The renewal charges are similar to the first application charges and all the companies are warned to start the renewal process earlier than the expiry date of the licence.

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