As the demand for global talent continues to rise, small and medium-sized enterprises (SMEs) across the UK are increasingly looking to hire skilled workers from overseas. Whether you operate in tech, healthcare, engineering, hospitality, or any sector with a domestic skills shortage, sponsoring workers can be key to business growth and innovation.
Fortunately, companies of all sizes and across all industries are eligible to apply for a sponsor licence, provided they meet the criteria set out by the Home Office. However, the application process can be complex – particularly for SMEs with limited resources. In this blog, we’ll explain the steps involved and how expert immigration support can help make the process smooth and successful.
Why SMEs should consider sponsoring overseas workers?
Hiring from the international talent pool can give smaller businesses a competitive edge. You may need niche expertise, language skills, or technical knowledge that simply isn’t readily available within the UK workforce. Sponsoring overseas workers under the Skilled Worker route allows you to fill these gaps legally and efficiently.
However, to do so, your business must first secure a sponsor licence from the Home Office.
Sponsor Licence requirements for SME
Your business must meet both eligibility and suitability requirements in order to be approved as a licensed sponsor. These include:
- Being a genuine business operating and trading lawfully in the UK
- Being based in the UK
- Not posing a threat to immigration control
- Having honest and dependable key personnel to manage sponsorship duties
- Having robust HR systems to meet compliance obligations
Check further eligibility and suitability requirements here.
It’s important to note that size is not a barrier – smaller companies can absolutely become licensed sponsors. However, the Home Office will thoroughly assess whether your business is capable of fulfilling its sponsorship duties. This includes ensuring that sponsored workers are legally employed, paid appropriately, and working in accordance with visa requirements.
Understanding your sponsor category: are you a small or charitable sponsor?
Your sponsor category will impact the application fee and ongoing costs of sponsorship. You’re generally classed as a small sponsor if your business meets at least two of the following criteria:
- Annual turnover is £10.2 million or less
- Total assets are worth £5.1 million or less
- You have 50 employees or fewer
You’re a charitable sponsor if you are:
- A registered charity in England, Wales, Scotland or Northern Ireland
- An excepted or exempt charity
- An ecclesiastical corporation established for charitable purposes
Not sure which category you fall under? You can contact the Home Office Business Helpdesk at:
businesshelpdesk@homeoffice.gov.uk
Preparing your sponsor licence application: a common pitfall for SMEs
One of the most challenging parts of the sponsor licence process is the supporting documentation. The Home Office requires a specific bundle of documents to prove your organisation’s legitimacy, operational presence, and compliance capabilities.
Many applications are refused simply due to incomplete or incorrect documentation – a risk that smaller businesses can’t afford.
That’s where our expertise comes in. At Gherson, our specialist corporate immigration lawyers work closely with SMEs to:
- Review your business structure and HR systems
- Identify the correct sponsor category and prepare application forms
- Compile and verify your supporting documents
- Liaise with the Home Office on your behalf
- Provide ongoing compliance support once your licence is granted
What happens after you get your sponsor licence?
Once approved, your business becomes a licensed sponsor and can issue Certificates of Sponsorship (CoS) to eligible overseas workers. This allows them to apply for a Skilled Worker visa and legally work for your company in the UK.
You’ll need to maintain your sponsorship duties, including:
- Keeping up-to-date employee records
- Reporting changes in a sponsored worker’s employment
- Ensuring ongoing compliance with immigration rules
Failure to meet your obligations could lead to your licence being downgraded, suspended, or revoked – which is why having legal support is so valuable.
How Gherson supports SMEs every step of the way
Sponsorship doesn’t need to be daunting. Whether you’re applying for the first time or looking to expand your current workforce, our team is here to guide you with:
- Expert legal advice tailored to SMEs
- End-to-end assistance, from initial application to long-term compliance
Need Immigration Assistance? Contact Gherson Solicitors today for expert legal guidance on navigating the latest immigration changes.
Get in touch now to schedule a consultation!
Updated: 10 April 2025
How Gherson can assist
Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
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