If you are a startup founder or responsible for recruitment in a startup and you want to hire a skilled migrant worker, your business must hold a sponsor licence.
Many startups assume sponsor licences are only for large companies.
That is not true. UK immigration rules do not prevent startups from sponsoring workers. If your business is genuine, the role is real, and the candidate needs a Skilled Worker visa to work for you, your startup can apply for a sponsor licence.
The process and requirements are broadly the same for startups and established companies. Size and brand do not matter. What matters is whether your business is operating lawfully, the vacancy is genuine, and you can meet your sponsor duties.
In this guide, we explain how a startup can get a sponsor licence.
We cover the process, the documents you need, the fees involved, and what UKVI expects to see from young companies. We also highlight the areas where startups most often struggle, so you can prepare properly before applying.
If you want to hire a skilled migrant worker and need a clear explanation of how sponsorship works for startups, this guide sets out the essentials.
Eligibility for a startup to apply for a sponsor licence
To be granted a sponsor licence, the Home Office must be satisfied that your startup is a genuine organisation operating lawfully in the UK. This test applies to all applicants, but startups are examined more closely because they lack trading history.
Is your new business a genuine operation?
To be granted a sponsor licence, the Home Office must be satisfied that your business is a genuine organisation operating lawfully in the UK.
A startup does not need to be trading or generating revenue at the point of application. Many legitimate businesses cannot operate until a key hire is in place, or are still developing a product or service. That alone does not prevent approval.
What matters is whether the business is real and credible. UKVI looks at whether the company is genuinely capable of offering skilled work, paying the stated salary, and operating for legitimate commercial reasons rather than to facilitate migration.
While Appendix A documents are required, they are often not enough on their own for startups. Caseworkers assess whether the evidence makes sense as a whole. Clear explanations of the business model, funding, and why the role is needed at this stage can be decisive.
Is your new business capable of complying with sponsor duties?
Being genuine is not enough. UKVI must also be satisfied that your business can meet its sponsor duties from the start.
For startups, this does not require a full HR department. It requires control. You must be able to carry out right to work checks, keep required records, track sponsored workers, and report changes on time.
UKVI may assess this through your documentation or through a pre licence compliance visit. If you cannot show that basic systems and responsibilities are already in place, the application is likely to fail.
Does your new business have a corporate bank account?
For sponsor licence purposes, a startup is generally a business that has been operating or trading in the UK for less than 18 months.
Startups must provide evidence of a current corporate bank account as part of the application. This is mandatory.
The account must be with a UK regulated bank. Many e money institutions do not meet this requirement. Without a compliant business bank account, a sponsor licence application cannot succeed.
Because opening a business bank account can take time, especially where founders are based outside the UK, this should be addressed early.
Does your new business have suitable personnel to manage the licence?
Every sponsor licence application must nominate key personnel to manage the licence.
These individuals must meet specific requirements. They must normally be paid staff or office holders, based in the UK, and suitable to take on compliance responsibility. The Authorising Officer must be a senior person responsible for recruitment and sponsor duties, and the Level 1 User must be an employee, partner, or director.
For startups, identifying suitable people can be challenging, especially where there are few or no employees. However, a sponsor licence cannot be granted unless compliant key personnel are in place. If necessary, the business must appoint additional staff or office holders before applying.
The Skilled Worker sponsor licence application process, step by step
The Skilled Worker sponsor licence application follows a fixed process. Startups must complete each stage correctly to avoid delays or refusal.
Confirm the vacancy is genuine and suitable for sponsorship
Before applying, you must confirm that the role is a genuine vacancy that meets the Skilled Worker requirements. The job must be necessary for your business, match an eligible occupation code, meet the required skill level, and pay at least the applicable salary threshold. The role must exist for genuine business reasons, not to facilitate a visa.
Appoint key personnel
You must nominate an Authorising Officer, a Key Contact, and at least one Level 1 User. These individuals must meet the Home Office suitability requirements and be in place before the application is submitted.
Prepare supporting documents
You must gather the documents required under Appendix A of the sponsor guidance, based on your business type. Startups should also prepare additional evidence to demonstrate genuineness and readiness to sponsor Skilled Workers.
Submit the online application and pay the fee
The Skilled Worker sponsor licence application is submitted online through the Sponsorship Management System, and the sponsor licence fee is paid at this stage.
Submit supporting documents within five working days
All supporting documents must be submitted within five working days of the online application. Missing this deadline can result in the application being rejected as invalid.
Await a decision or compliance visit
The Home Office may decide the application based on the documents provided or may carry out a pre licence compliance visit to assess your HR systems and compliance capability.
Standard processing can take up to eight weeks from the date of submission. Priority processing is limited, subject to availability, and is not guaranteed.
Costs for a Skilled Worker sponsor licence application
Sponsor licence application fee
For a Skilled Worker sponsor licence the Home Office fee is:
£574 if you are a small or charitable sponsor
£1,579 if you are a medium or large sponsor
Priority processing fee
If you use the pre licence priority service, you pay an additional:
£750 on top of the application fee
Priority aims for a decision within 10 working days, but it does not guarantee approval, and slots are limited.
Read our detail guide on the cost to hire a migrant Skilled Worker for your UK tech startup
Documents required for a Skilled Worker sponsor licence application
When applying for a Skilled Worker sponsor licence, you must submit supporting documents to prove that your business is genuine, operating lawfully in the UK, and capable of meeting sponsor duties. The Home Office refers to this evidence list as Appendix A of the sponsor guidance.
The exact documents required depend on your business type and how long you have been operating. For startups, document selection matters more than document volume.
Core documents most startups must provide
Most startups will be expected to submit the following:
Certificate of incorporation or registration with Companies House
Evidence of a UK based corporate bank account with a regulated bank
Employer’s liability insurance certificate with a minimum cover of £5 million from an FCA authorised insurer
PAYE and Accounts Office reference number confirmation from HMRC, if the business employs staff or is ready to do so
VAT registration certificate, where the business is VAT registered
These documents establish that the business exists, is operating lawfully, and is capable of employing workers in the UK.
Evidence to demonstrate business genuineness
Startups are often required to go beyond the minimum Appendix A documents, particularly where trading history is short or limited.
Useful supporting evidence may include:
Commercial contracts, client agreements, or supplier arrangements
Invoices issued or received, and evidence of payments
Financial accounts, audited or unaudited, prepared by a qualified accountant
Funding evidence, including investment agreements or grant documentation
This evidence helps UKVI assess whether the business is genuinely capable of offering skilled employment and paying the sponsored worker’s salary.
Premises and operational documents
Where applicable, UKVI may expect evidence showing where the business operates:
Lease or licence agreement for business premises
Evidence of remote working arrangements, where no fixed office exists
This supports the credibility of the business setup and the sponsored role.
Industry specific documents
Businesses operating in regulated sectors must provide additional documentation relevant to their industry.
Examples include:
Regulatory registration or authorisation for financial services businesses
CQC registration or inspection reports for healthcare providers
Food business registration and relevant premises or alcohol licences for hospitality businesses
If sector specific evidence is required and missing, the application may be delayed or refused.
Flexibility for startups
The Home Office recognises that startups may not have the full range of traditional business documents due to their short operating history. Some flexibility is allowed.
However, missing documents must be explained and supported by alternative evidence. UKVI expects the overall document pack to present a clear and consistent picture of a genuine, compliant business.
Imp Note: This content is for general information only and does not constitute legal advice. You should seek advice from a qualified UK immigration solicitor before taking any action. You can book one with Nara Solicitors
