Key Takeaways
- Almost any genuine UK business trading lawfully can apply to sponsor workers, from a limited company or university to a sole trader or charity.
- A private individual can’t sponsor a worker. Only an organisation or a genuine business can, so a sole trader applies as a business rather than in a personal capacity.
- Start-ups can apply, as there’s no minimum trading history. That said, a business trading for under 18 months needs a UK corporate bank account.
- Size doesn’t decide it. The Home Office looks at whether the business is genuine with a real need to hire, and can meet its compliance duties.
- Certain things rule you out, such as unspent convictions for fraud or a previous revoked licence among key personnel.
Whether you’ve found the right person for a role or you’re the right person for it, none of it matters if a business can’t actually sponsor a visa.
There’s a common assumption that only big corporations can sponsor overseas workers – and plenty of small business owners talk themselves out of it before they’ve even checked.
The reality is more open than most people expect. The Home Office cares far more about whether a business is genuine and can meet its duties than about how big it is. This guide sets out exactly who can sponsor a UK work visa, and the few things that rule an employer out.
If you’d rather talk your own situation through, Osbourne Pinner offers a free 30-minute consultation with a business immigration solicitor. You can also read our guide to what visa sponsorship is and how it works for the wider picture.
The basic rule: a genuine UK business
To sponsor a worker, you need a sponsor licence. To get one, you have to be a genuine organisation trading lawfully in the UK. That’s the heart of it.
The Home Office needs to see that the business really exists, really operates and really needs the worker it wants to bring in.
Being genuine means being properly set up:
- A company or partnership registered with Companies House
- Holding the right permissions to operate from its address
- Able to show it is actually trading
It’s substance over scale that the Home Office is looking for.
Which types of organisation can apply?
A wide range of business structures can hold a sponsor licence, provided they meet the genuine-business test.
- Limited companies and PLCs.
- Limited liability partnerships and ordinary partnerships.
- Sole traders running a genuine trading business.
- Charities and not-for-profit organisations.
- Educational institutions, such as universities recruiting international staff.
So, forget the label. What matters whether the organisation is real, lawful and has a genuine need to hire from overseas.
Can an individual sponsor a worker?
Not in a personal capacity, no. You can’t sponsor a nanny, a carer or a member of staff as a private individual. Sponsorship is a business function, not a personal one.
A sole trader can apply, but they’re applying as a business, and the Home Office looks at sole trader applications closely. You would need to show:
- Genuine self-employment through HMRC records
- Tax returns and contracts
- A real need for the worker
- That you can meet the ongoing compliance duties
Our guide on whether a sole trader can apply for a sponsor licence goes into this in more detail.
Can a new business or start-up sponsor a visa?
Yes. There’s no rule that a business must have traded for a set number of years before it can sponsor. A start-up in its first year can apply, which surprises a lot of founders.
There’s one practical extra step though. A business that has been trading in the UK for less than 18 months has to provide evidence of a current corporate bank account with a UK bank regulated by the FCA and PRA.
Beyond that, a young business is assessed on the same genuine-business and genuine-need basis as any other. It just needs to evidence its position clearly, because newer businesses tend to attract closer scrutiny.
Does the business have to be a certain size or profitable?
No. Small and medium businesses obtain sponsor licences all the time, and profitability isn’t a requirement. What the Home Office wants to see is that the business can lawfully pay the salary for the role and that the role is commercially credible.
Size only really matters for the fee. Smaller sponsors pay a lower licence fee than larger ones, based on turnover, assets and employee numbers. But a small business is no less entitled to a licence than a large one.
You also need the right people in place
Every sponsor has to name certain people to run the sponsorship side of things through the Sponsor Management System. These are:
- The Authorising Officer
- The Key Contact
- The Level 1 User
They need to be chosen carefully because they’re responsible for the business meeting its duties. In the Home Office’s language, they must be dependable,
This is where capability comes in. The Home Office will want to see that the business has the HR systems to monitor sponsored workers, keep records and report the right things. The full requirements are set out in the sponsor guidance on GOV.UK.
What rules an employer out?
A few things will stop an application in its tracks, and they nearly all come back to trust and compliance:
- Unspent criminal convictions among key personnel for offences such as fraud, tax evasion or money laundering.
- A history of failing sponsor duties, or having had a licence revoked.
- Being considered a threat to UK immigration control. For example, a record of immigration breaches.
- No genuine vacancy. If the Home Office decides a role has been invented purely to enable sponsorship, it will refuse.
If none of these apply and the business is genuine, the door is open. The work is in evidencing it properly, which is where most applications succeed or fail.
Talk to a business immigration solicitor at Osbourne Pinner
If you’re unsure whether your business can sponsor a worker, or you want the application done right first time, our sponsor licence solicitors can help. We are a multi-office firm with solicitors in London (Piccadilly and Canary Wharf), Harrow and Manchester, and our business immigration team advises businesses of every size on eligibility, applications and compliance.
We offer a free 30-minute consultation with a business immigration solicitor, Monday to Friday, with no obligation. It costs nothing to find out whether your business qualifies. We do not offer Legal Aid.
Call us on 0203 983 5080, message us on WhatsApp, or email [email protected] to arrange your consultation.
Please note that this article is for informational purposes only and does not constitute legal advice. We always recommend speaking to a qualified solicitor for advice tailored to your specific circumstances.
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