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How to Secure a Sponsor Licence for Your Start-Up: A Guide From a UK Immigration Lawyer

Overview

The first quarter of 2024 has shown significant growth for start-ups in the UK, with a 10% increase in new business registrations compared to the previous year, according to Companies House data. Despite challenging economic conditions, this surge in entrepreneurial activity persists. However, many start-ups face a significant skills shortage, prompting them to look beyond UK borders for top talent. This guide outlines how your start-up can secure a Sponsor Licence to hire skilled workers from abroad.

The International Labour Market and Skills Shortage

Nearly one-third of UK businesses report experiencing a labour shortage, as highlighted by the Office for National Statistics (ONS). This shortage is exacerbated by various factors, including high energy prices, rising borrowing costs, and international conflicts. The Federation of Small Businesses reports that 80% of small firms struggle to recruit candidates with the necessary skills. As a result, many start-ups are seeking talent from overseas to meet their business needs.

Understanding The Sponsor Licence

A Sponsor Licence permits UK employers to hire workers from outside the UK, including the EU. It also covers unpaid roles, such as charitable work.

Exceptions

There are exceptions based on agreements between the UK and specific countries. Consult with an immigration solicitor to determine if you qualify for an exemption.

Steps To Obtain a Sponsor Licence

1. Eligibility Check: Verify if your start-up qualifies for a Sponsor Licence.
2. Role Suitability: Ensure the position you intend to fill is eligible for sponsorship.
3. Licence Type Selection: Choose the appropriate type of licence based on the role.
4. Sponsorship Management: Designate individuals responsible for managing sponsorship within your start-up.
5. Online Application: Complete the application online and pay the applicable fee.

Eligibility Criteria

To be eligible, your start-up must meet specific conditions demonstrating good business and employer conduct:

• No unspent criminal convictions, especially related to immigration offences, fraud, or money laundering.
• No Sponsor Licence revocation in the past 12 months.
• Adequate systems to monitor sponsored workers, including staff to manage sponsorship and a track record of reliability and compliance.

Role Suitability For Sponsorship

The role you wish to sponsor must meet the UK Immigration Rules. For instance, roles must comply with minimum wage and working time regulations. Specific salary thresholds apply depending on the visa category:

• Skilled Worker Visa: Generally, £38,700 per annum.
• Scale-up Worker Visa: Generally, £36,300 per annum.

Quastels’ experienced advisers can assist you in navigating these requirements.

Types of Sponsor Licences

Your choice of licence will depend on the nature of the employment:

• Temporary Worker Licence: For short-term roles such as volunteering or job-shadowing.
• Worker Licence: For employing skilled workers in short-term, long-term, or permanent roles. This excludes certain roles like the Scale-up Worker, intended for supporting fast-growing businesses.

Sponsorship Management

Your start-up must appoint individuals and establish systems to manage the sponsorship process and the sponsored workers. Key roles include:

• Authorising Officer
• Key Contact
• Level 1 User

These individuals must pass suitability checks, such as having no unspent criminal convictions and not being fined by UKVI in the past 12 months. They should also be based in the UK and not subject to bankruptcy restrictions. Quastels can help assess your compliance with these requirements.

Application Process

The final step involves completing the application, submitting supporting documents, and paying the relevant licence fees.

Conclusion

Securing a Sponsor Licence is essential for start-ups looking to hire international talent. By following these steps and ensuring compliance with UK immigration regulations, your start-up can successfully navigate the process. For personalised assistance, consider consulting with Quastels’ experienced immigration advisers.

If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.

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Options for Moving to the UK as a Tech Professional

As a tech professional looking to relocate to the UK, there are several viable immigration pathways available to you. The two most commonly utilised visa routes by UK employers for bringing in overseas tech talent are the Global Business Mobility (GBM): Senior or Specialist Worker and the Skilled Worker visa routes.

1. Senior or Specialist Worker Visa

If you are currently employed by a tech company outside the UK, the Senior or Specialist Worker visa allows you to transfer your employment to the UK branch of your company.

Eligibility Criteria:

• Certificate of Sponsorship: You must have a valid Certificate of Sponsorship from your UK employer.
• Employment Duration: You must have been employed by your company, or within the same corporate group, outside the UK for at least 12 months prior to your application. This requirement is waived if you are a high earner.
• Eligible Occupation: Your job must be on the list of eligible occupations.
• Salary Requirement: You must be paid the minimum eligible salary for your job.
• Financial Maintenance: You must demonstrate sufficient funds to support yourself in the UK unless your sponsor certifies maintenance.
• Suitability Grounds: You must not fall under any general grounds for refusal.

Advantages:

• No English Language Requirement: There is no need to meet any English language requirements, making this route attractive for some applicants.

Additional Information:

• Dependants: You can apply with a dependant spouse, civil partner, unmarried partner, and children under 18.
• Study Options: You can study in the UK while working, subject to certain conditions.
• Time Restrictions: You cannot be sponsored under this route for more than 5 years in any 6-year period unless you are a high earner, in which case the limit is 9 years in any 10-year period.
• Settlement: This route does not lead to settlement in the UK on its own.
• Switching Visas: It is possible to switch from a Senior or Specialist Worker visa to a Skilled Worker visa if you meet the relevant criteria.

2. Skilled Worker Visa

The Skilled Worker visa is a preferred option for tech professionals as it offers a path to settlement in the UK after five years of continuous residence, provided you meet other relevant requirements.

Eligibility Criteria:

• Certificate of Sponsorship: You must have a valid Certificate of Sponsorship from your UK employer.
• Eligible Occupation: Your job must be on the list of eligible occupations.
• Salary Requirement: You must be paid the minimum eligible salary for your job.
• English Language Competency: You must demonstrate competency in English to at least the B1 level on the Common European Framework of Reference for Languages (CEFR) in reading, writing, speaking, and listening.
• Financial Maintenance: You must demonstrate sufficient funds to support yourself in the UK unless your sponsor certifies maintenance.
• Suitability Grounds: You must not fall under any general grounds for refusal.

Additional Information:

• Dependants: You can apply with a dependant spouse, civil partner, unmarried partner, and children under 18.
• Study and Work Flexibility: You can study and undertake additional work in certain circumstances.
• No Time Restrictions: There are no limits on the cumulative periods of sponsorship under the Skilled Worker route.

Both visa options have their unique advantages and requirements. As a tech professional, your choice between the Senior or Specialist Worker visa and the Skilled Worker visa will depend on your specific circumstances and long-term plans in the UK. If you need tailored advice or assistance with your application, consulting with a qualified UK immigration lawyer can help ensure a smooth and successful immigration process.

If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.

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Visa Sponsorship for Creative Workers

If you’re looking to employ individuals in the UK’s creative industry—such as artists, dancers, musicians, and actors—they must apply for a Creative Worker visa. To hire talent through this scheme, your organisation must hold a sponsor licence.

Sponsor licences, granted by the Home Office, enable UK-based organisations to employ non-UK resident workers on either a temporary or permanent basis (see our earlier related article here). We assist organisations through the sometimes challenging process of obtaining a sponsor licence, offering comprehensive support from start to finish. Additionally, we provide ongoing licence management to ensure your organisation remains compliant with all requirements.

If you operate in the UK’s creative sector and wish to employ a non-UK resident, consider the following:

1. Does The Role Fall Within The Appendix Creative Worker Codes of Practice?

1. Eligibility: The Home Office has a list of eligible roles in the Appendix Creative Worker Codes of Practice. If the role you want to fill is listed, you must adhere to the instructions under each relevant code and document every step. Compliance is crucial, as the Home Office may audit your business, and non-compliance could result in the revocation of your sponsor licence.
2. Instructions: Each code details the appropriate salary rate, advertising requirements to demonstrate local recruitment efforts, exemptions from advertisement requirements, and other specific conditions for each role.

2. What If The Role Does Not Fall Within The Codes of Practice?

If the role isn’t listed in the Codes of Practice, you must meet two conditions:

1. Skilled Occupations: The role must correspond to a code listed in the Appendix Skilled Occupations.
2. Unique Contribution: You must demonstrate that both the individual and the role will make a unique contribution to the UK’s creative life.

3. Sponsoring Technical or Support Staff

Creative Workers often require their technical or support staff, known as ‘entourage,’ to accompany them to the UK. You can sponsor these individuals if their employment is directly related to the Creative Worker’s activities in the UK. However, not all entourage members are eligible, and certain restrictions apply.

4. Assigning The Certificate of Sponsorship (COS)

When assigning a CoS to a Creative Worker, remember the extra step of confirming compliance with the relevant creative code of practice (if applicable) or detailing how the worker will uniquely contribute to the UK’s creative life. There’s a 250-word limit for this confirmation, but you can provide additional information in a Sponsor’s note to ensure sufficient detail is provided.

Conclusion

By adhering to these guidelines, you can successfully navigate the process of hiring non-UK resident creative professionals, ensuring compliance and fostering talent within your organisation.

If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.

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