Linked entities vs separate sponsor licences: which is right for your business?

In today’s competitive, globalised job market, many UK businesses need to hire international talent. However, for companies with complex structures, choosing between linked entities or separate sponsor licences is crucial. Here’s a guide to help you decide which options best suits your business needs.

UK businesses wishing to employ international talent must hold a sponsor licence issued by the Home Office. This allows them to sponsor non-UK workers for visas such as Skilled Worker or Global Business Mobility. For companies with multiple branches or subsidiaries, the Home Office offers flexibility through either linked or separate sponsor licence structures.

Linked entities: a single licence for multiple branches

A linked entity structure allows companies to operate under one sponsor licence across several branches or subsidiaries, provided they have common/same ownership or control.

Benefits of linked entities

• Streamlined compliance: Fewer administrative requirements and reduced reporting.
• Cost savings: One application fee for multiple entities.
• Internal flexibility: Easier to transfer sponsored employees between branches.

Considerations

• Centralised management required: Non-compliance by one branch could jeopardise the entire licence.
• Increased scrutiny: A compliance breach in one entity can impact all linked branches.

Separate sponsor licences: independence for each entity

In a separate licence structure, each entity holds its own licence, allowing for independent compliance management. A sponsor licence does not allow sister, parent or subsidiary companies to sponsor a worker unless they have been specifically added or included in the licence. The same applies to an organisation that opens or acquires a new branch.

Benefits of separate licences

• Enhanced control: Each entity handles its own compliance and recruitment processes.
• Minimised risk: Compliance issues in one entity won’t impact others.
• Scalability: Useful for businesses with independent branches in different markets.

Considerations

• Higher administrative costs: Each licence incurs application, renewal and compliance costs.
• Limited employee mobility: Sponsored employees cannot easily move between branches with separate licences.

Choosing the right option

When deciding between linked entities and separate licences, consider the following factors:

• Company structure: Linked licences suit centralised HR functions, while separate licences fit independent branches.
• Compliance risk: Separate licences reduce the impact of individual compliance breaches.
• Employee mobility needs: Linked entities facilitate internal transfers.
• Administrative capacity: A linked licence reduces costs but requires central oversight.

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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