In the UK, a sponsor licence is essential for businesses that want to hire workers from outside the country. While it’s commonly associated with larger businesses, even sole traders – individuals who run their own businesses – can apply for a sponsor licence.
However, the process and requirements for sole traders differ slightly, and there are certain conditions that need to be met to secure the licence.
In this article, we’ll explore whether a sole trader can apply for a sponsor licence, the eligibility criteria and the challenges they may face.
What is a sponsor licence?
A sponsor licence is permission granted by UK Visas and Immigration (UKVI) that allows businesses to hire overseas workers under the Skilled Worker visa route. It enables businesses to recruit from outside the UK to fill roles that require particular skills that might not be readily available in the local labour market. For businesses, having a sponsor licence is a vital step in attracting the best talent, especially in industries where there is a shortage of skilled workers.
While it’s often assumed that only large companies can apply for a sponsor licence, sole traders can also do so as long as they meet the necessary requirements. This allows sole traders the opportunity to access global talent, providing a solution for those in sectors such as IT, construction or hospitality where specialist skills may be required.
Can a sole trader apply for a sponsor licence?
Yes, a sole trader can apply for a sponsor licence. However, there are specific criteria that must be met to ensure that the application is successful.
UKVI requires that the business is actively trading and has a legitimate need for hiring skilled overseas workers. Sole traders must demonstrate that their business is genuine and that they are offering a role that meets the eligibility criteria for the Skilled Worker visa.
The role being offered must meet the requirements of the Skilled Worker visa, including falling under one of the recognised Standard Occupational Classification (SOC) codes and meeting the minimum salary threshold. This means the position must be at a certain skill level and pay at least £26,200 or the “going rate” for the role, whichever is higher.
Eligibility criteria for sole traders
To apply for a sponsor licence, sole traders must meet several key eligibility requirements:
- Genuine trading business: The business must be actively trading and not simply set up for the purpose of sponsoring workers. UKVI will require evidence such as bank statements, business accounts or contracts that demonstrate the business’s viability.
- Skilled worker eligibility: The job being offered must be eligible for the Skilled Worker visa, which includes meeting the required skill level and being listed under the appropriate SOC code.
- Compliance with sponsor duties: Sole traders must have systems in place to fulfil their sponsor duties, including monitoring sponsored workers and reporting to UKVI.
Challenges sole traders may face
While sole traders are eligible to apply for a sponsor licence, there are unique challenges they may face compared to larger businesses. One of the most significant hurdles is proving that their business is legitimate and capable of meeting the necessary sponsor duties. Sole traders often operate on a smaller scale, which means they may lack the administrative resources or HR systems required to comply with the strict rules set by UKVI.
HR systems and compliance
Sole traders must demonstrate that they have effective HR processes in place to monitor and manage sponsored workers. This includes keeping detailed records of employees’ right to work, ensuring that salary levels are maintained and reporting any changes in the employee’s circumstances to UKVI. For sole traders without a dedicated HR department, this can be a complex and time-consuming task.
Proving genuine need
UKVI requires businesses to show that there is a genuine need to hire a worker from overseas, rather than filling the role locally. Sole traders, particularly in sectors with a strong pool of UK-based talent, may need to provide substantial evidence that they were unable to find a suitable local candidate. Advertising the job domestically and keeping records of unsuccessful applications can help demonstrate this need.
Document requirements
To apply for a sponsor licence, sole traders must submit several key documents that prove their business’s legitimacy. These may include VAT registration, business bank statements, insurance policies and contracts with clients. For sole traders operating on a smaller scale, gathering these documents can sometimes be a challenge, but it is essential to ensure that all paperwork is in order before applying.
Benefits of a sponsor licence for sole traders
Despite the challenges, obtaining a sponsor licence can offer significant benefits for sole traders. The licence allows them to access a wider pool of talent, particularly in industries where specialist skills are in short supply in the UK. Being able to sponsor workers from overseas can give sole traders a competitive advantage by allowing them to bring in expertise that may not be readily available domestically.
Additionally, having a sponsor licence can enhance the credibility of the business. Being a licensed sponsor indicates that the business meets UKVI’s strict compliance requirements, which can improve its reputation with clients and customers.
Steps to apply for a sponsor licence
The process for applying for a sponsor licence involves several steps. First, the sole trader must gather all necessary documentation to prove that their business is genuine. They must then apply through the UKVI’s online system, assigning key roles such as an Authorising Officer to oversee compliance.
Sole traders must pay the appropriate fee for small businesses, which is currently £536. Once the application is submitted, UKVI will review it and it typically takes around 8 weeks for a decision to be made.
Legal advice from experienced immigration solicitors
Applying for a sponsor licence as a sole trader can be a complex process, especially when it comes to meeting UKVI’s strict requirements. From proving your business’s legitimacy to ensuring compliance with sponsor duties, our professional immigration solicitors are here to support you every step of the way.
It’s important to note that this blog post is for informational purposes only. If you’d like to discuss your circumstances further, Osbourne Pinner Solicitors offer a free 30-minute consultation, with no obligation to proceed. Simply fill in our online form our online form, call 0203 983 5080 or use email at [email protected].
