How to Get a Self Sponsorship Visa UK

self sponsorship visa

IN THIS SECTION

While there is no dedicated self sponsorship visa for the UK, there are visa options that allow you to move to Britain to work for yourself.

In this guide, we look at the most commonly used visa for those who want to run their own business in the UK – the Skilled Worker visa. We also consider the Innovator Founder visa as an alternative to self sponsorship to start up a new UK company.

As self sponsorship is not a mainstream immigration route in the UK, it is strongly advised that you seek the advice of an immigration specialist who can evaluate your case, as well as assist you and your business with your respective sponsor licence and visa applications.

 

Section A: What is a Self Sponsorship Visa?

 

Self sponsorship is an immigration strategy that enables non-UK citizens to come to the UK by owning a business, through which they can sponsor their own work visa.

‘Self Sponsorship visa’ in the UK is a general term used to describe an immigration route that allows foreign nationals to sponsor themselves to work through their own business, without needing a traditional employer to sponsor them.

This is done by acquiring or setting up a UK-based company, which then applies to the UK Home Office for a sponsor licence. Once the company is approved as a licensed sponsor, it can then assign a Certificate of Sponsorship (CoS) to the business owner, who then applies for a Skilled Worker visa.

 

Table: Self Sponsorship Visa Stages
Stage Number
Stage
Description
1
Owning a legitimate business in the UK
The individual must set up and own a legally registered and compliant business in the UK.
2
Business obtains a sponsor licence
The business applies for and obtains a sponsor licence from the UK Home Office to sponsor employees.
3
Business owner is sponsored by their own company
Once the sponsor licence is granted, the business owner (as the applicant) is sponsored by their own company as an employee.

 

Self sponsorship is ideal for entrepreneurs, business owners, and skilled workers who wish to start their own company or expand an existing enterprise, offering the flexibility of being both the employer and the sponsored employee, making it a popular choice for those seeking greater control over their work and career.

 

Section B: Is There a Self Sponsorship Visa UK?

 

While there is currently no dedicated self sponsorship visa for the UK, it may be possible to establish or invest in a UK-based business and, having been approved by the UK Home Office for a suitable sponsor licence, arrange for your business to sponsor you for a Skilled Worker visa.

Equally, if you already own or partly own a business in the UK, provided your business is approved to sponsor workers on the Skilled Worker route and you meet the requirements for a Skilled Worker visa, this can potentially provide you with the ideal solution to self sponsorship.

The Self Sponsorship process consists of several key stages, each requiring careful attention to detail to ensure compliance with the sponsorship rules and visa conditions.

 

Step 1: UK-Based Business

The first step is to either acquire an existing UK-based company or establish a new business in the UK, which involves registering the company with Companies House, choosing a suitable business structure (such as a limited company), and ensuring the business meets all legal and tax obligations.

The business must be viable and capable of fulfilling the requirements needed to obtain a sponsor licence.

 

Step 2: Apply for a Sponsor Licence

The next step is for the company to apply for a sponsor licence from the UK Home Office.

A sponsor licence is the permission granted by UK Visas and Immigration (UKVI) to a UK-based business to enable that business to assign Certificates of Sponsorship (CoS) to migrant workers – including the applicant, if they are self-sponsoring – under the Skilled Worker route.

UKVI is the division of the UK’s Home Office responsible for both sponsor licensing and visas.

The business will need to submit various documents to prove it is operating legitimately, can offer genuine employment, and has the necessary systems in place to monitor sponsored employees. The licence application usually takes 8 weeks to process if there are no issues and if the Home Office does not carry out a pre-licence compliance inspection.

 

Step 3: Apply for a Skilled Worker Visa

After obtaining the sponsor licence, the business can issue a Certificate of Sponsorship (CoS) to the individual who will be sponsored. With this CoS, the individual can then apply for a Skilled Worker Visa.

A Skilled Worker visa applicant must have an offer of a genuine job role from an approved sponsor that meets the relevant route-specific requirements before they can make a valid application to enter or stay in the UK on this route. The sponsor confirms this by assigning a CoS to the migrant worker.

The visa application process involves submitting the CoS, along with proof of financial stability and meeting the necessary English language requirements. The visa application can take several weeks depending on whether standard or priority processing is used.

 

Step 4: Ongoing Compliance

Once the licence and visa have been granted, the business must maintain ongoing compliance with the Home Office regulations. This includes ensuring that the sponsored employee, whether the business owner or other staff, continues to meet the relevant visa conditions, such as salary thresholds and working in the approved job role.

The business is also responsible for monitoring visa expiry dates, keeping accurate records, and reporting any significant changes, such as the employee leaving the company or changing roles.

Failure to meet the ongoing compliance requirements could result in the sponsor licence being revoked, which would affect the visa status of the sponsored worker and potentially lead to legal consequences for the business.

 

Section C: Setting Up a UK Business

 

Setting up a company in the UK is the first stage in the Self Sponsorship visa process. This involves several steps, from choosing the type of company structure to registering with the appropriate authorities.

 

1. Choose a Business Structure

 

Before registering your business, you must decide on the appropriate legal structure. Common structures include:

 

Table: Company Structures in the UK
Business Structure
Description
Private Limited Company (Ltd)
The most popular choice for self-sponsorship, where the company is a separate legal entity from its owners. The company must have at least one director and one shareholder.
Sole Trader
You run the business as an individual and are personally responsible for any debts. This is simpler but less common for self-sponsorship due to the need for a sponsor licence.
Partnership
Two or more people share responsibility for the business. Similar to a sole trader but involves more than one person.

 

A Private Limited Company (Ltd) is often recommended for self-sponsorship as it offers limited liability protection and is more likely to meet sponsor licence requirements.

 

2. Register the Company with Companies House

 

Once you’ve chosen the business structure, you need to register your company with Companies House, the UK’s registrar of companies. Registration can be done online and typically takes one to three working days. To register, you will need to provide the following:

 

a. Company Name: Must be unique and comply with UK naming rules.

b. Registered Office Address: A physical address in the UK where official correspondence will be sent. It can be your business premises or a third-party service.

c. Company Directors: At least one director is required, who will manage the company’s operations. For the purposes of the sponsor licence application, at least one should be UK-based.

d. Shareholders: A list of shareholders and their shareholdings, which may include yourself if you are both the director and owner.

e. SIC Code: This code identifies your company’s business activity. You must select the correct code that reflects your business sector.

 

3. Prepare Memorandum and Articles of Association

 

You will also need to prepare the Memorandum and Articles of Association, which are legal documents outlining how the company will be run and the rights of shareholders and directors. These documents must be submitted during registration with Companies House. Standard templates are available, but it’s advisable to seek legal advice to ensure they are appropriate for your business.

 

4. Set Up a UK Business Bank Account

 

After the company is registered, you’ll need to open a UK business bank account to manage the company’s finances. Most UK banks require proof of company registration, identification for the directors, and the registered office address. A business bank account is crucial for demonstrating the financial viability of your company when applying for a sponsor licence.

 

5. Register for Corporation Tax and VAT (If Applicable)

 

Once the company is registered, you must also register for Corporation Tax with HM Revenue & Customs (HMRC) within three months of starting business activities. If your company’s turnover is expected to exceed the VAT threshold (currently £90,000 per year), you will also need to register for VAT.

Corporation tax is applied to your company’s profits, while VAT is charged on most goods and services. Being compliant with tax obligations is vital for obtaining a sponsor licence.

 

6. Create a Business Plan

 

A comprehensive business plan is a key part of the self-sponsorship process. Your business plan should outline the company’s goals, financial forecasts, market research, and how it will create jobs or contribute to the UK economy. It should include:

 

a. Business Objectives: Clear goals for the company’s growth and operations.

b. Market Research: An analysis of the market demand for your products or services.

c. Financial Projections: Expected revenue, expenses, and profitability.

d. Staffing Plan: Details on how many people you plan to hire and the roles they will fulfil.

 

A strong business plan will be needed when applying for a sponsor licence to demonstrate that the business is viable and capable of sponsoring workers, including yourself.

 

7. Register for PAYE (Pay As You Earn)

 

If you plan to hire employees, including sponsoring yourself as an employee of your company, you will need to register for PAYE with HMRC. PAYE is a system for paying income tax and national insurance contributions on behalf of employees. It’s important to set up PAYE correctly to comply with UK employment law and sponsor licence requirements.

 

8. Ensure Compliance with UK Regulations

 

You must ensure that your company complies with all UK employment laws and regulations, including health and safety, insurance, and data protection rules. This compliance is necessary for obtaining a sponsor licence and operating the business legally in the UK.

 

Section D: Apply for a Sponsor Licence

 

With your company registered and operational, the next step is to apply for a sponsor licence from the UK Home Office. The sponsor licence allows your company to sponsor employees, including yourself, for a Skilled Worker visa.

To be eligible, your business must demonstrate that it is legitimate, financially stable, and capable of fulfilling its sponsor duties.

 

1. How to Apply for a Skilled Worker Sponsor Licence for Self Sponsorship

 

Before applying for a Skilled Worker visa, your UK-based business will first need to be approved by UKVI to sponsor this category of worker. In addition to issuing visas, UKVI is also responsible for making decisions around sponsor licensing.

To apply for a Skilled Worker sponsor licence, the details of your UK-based business will need to be registered with UKVI before submitting an online application form.

The online sponsor licence application form can be found at GOV.UK requires the applicant business to nominate a number of key personnel, including an Authorising Officer (AO), Key Contact (KC) and Level 1 user.

The AO must be the most senior person in your business and be responsible for the recruitment of migrant workers, while the KC will act as the main point of contact with UKVI. A Level 1 User must also be appointed to access the SMS, allowing them to assign CoS and manage the sponsorship process on a day-to-day basis.

The key personnel roles can be filled by the same person or a combination of different people in your business, although they must usually be either paid members of staff or office-holders. They must also meet a number of other requirements, including being based in the UK for the duration of their sponsorship role.

Once a Skilled Worker sponsor licence is in place, additional Level 1 Users can be appointed, together with Level 2 users, although they will have fewer permissions. Only Level 1 and Level 2 Users will have access to the SMS, where the AO and KC must be set up as a Level 1 or 2 user if they also require access.

 

2. Sponsor Licence Supporting Documents

 

To apply for a Skilled Worker sponsor licence, the applicant business must submit a number of supporting documents, including the application submission sheet. This must be emailed, signed and dated by the AO and all supporting documents sent within 5 working days.

A number of detailed documents must be provided to meet the Skilled Worker sponsor licence requirements. These can be found online in Sponsor Guidance Appendix A, although it is strongly advised to seek expert assistance from a self sponsorship visa specialist, not least as the applicant business will need to be able to satisfy UKVI that it is able to offer a genuine job role for suitably skilled and salaried employment. If UKVI forms the view that the role has been created mainly so that you can apply for entry clearance or permission to stay in the UK, the sponsor licence application will be refused.

 

3. How Much Does a Sponsor Licence Cost?

 

There are various costs associated with applying for a Skilled Worker sponsor licence and the sponsorship process. These include the licence application fee, a fee for assigning each sponsorship certificate, plus an Immigration Skills Charge (ISC) for every CoS assigned.

 

Table: Sponsor Licence Application Costs
Type of Business
Licence Type
Cost
Small or Charitable Sponsors
Worker Sponsor Licence
£536
Medium or Large Sponsors
Worker Sponsor Licence
£1,476

 

The cost of applying for a licence will depend on the size and status of your business. There is a £536 application fee for small or charitable businesses, with a £1,476 fee for medium or large businesses.

A small business is defined as having an annual turnover of £10.2 million or less and fewer than 50 employees, while medium and large businesses are those that exceed these thresholds.

The ISC is also based on the size and status of your business, as well as the start and end dates on your CoS.

For small or charitable businesses, the ISC is charged at £364 for the first 12 months, plus £182 for every further 6 month period. For medium or large businesses, the ISC is charged at £1,000 for the first 12 months, plus £500 for every further 6 months.

 

4. Sponsor Licence Processing Time

 

Having submitted the sponsor licence application, paid the fee and submitted all supporting documentation, a decision will usually be made in less than 8 weeks, although this can be longer if UKVI needs to conduct a compliance visit to ensure that your business is trustworthy, reliable and capable of carrying out its sponsor duties.

If the licence is granted, the company will be given an A -rated sponsor licence, and access to the Sponsorship Management System (SMS), which should be used to manage the licence, and assign CoS to visa applicants.

 

Section E: Skilled Worker Visa Application for Self Sponsorship

 

With a valid CoS, the business owner can apply to the Home Office for a Skilled Worker visa.

 

1. What is the Skilled Worker Visa?

 

A Skilled Worker visa will allow you to come to or stay in the UK to work in an eligible job role with an approved organisation for up to 5 years and, provided you continue to meet the relevant requirements, you can apply to renew your visa an unlimited number of times.

Having continuously lived in the UK for a period of 5 years, you can apply for indefinite leave to remain (ILR). To be eligible for ILR, also known as settlement, you would need to continue to be needed for your job and meet the salary requirements after being granted settlement. You would also need to meet a knowledge of language and life in the UK requirement, known as the KOLL requirement. However, provided you can meet the relevant requirements, you would be able to live and work in the UK on an indefinite basis.

As a long-term work route, one that provides a path to settlement, it is possible for your spouse, partner and any children to apply as your dependants to accompany or follow to join you in the UK on this route. A dependant would typically be granted a visa in line with the length of stay granted to the principal applicant or primary visa-holder, where they can either apply at the same time or at a later date. They can also apply to extend their stay as dependants on the Skilled Worker route, as well as apply for permanent settlement.

 

2. Skilled Worker Visa Requirements

 

To be eligible for a Skilled Worker visa, you must have a confirmed job offer before making your application and be suitably qualified to fill that role. You must also:

 

a. be working for a UK-based employer that has been approved by UKVI to sponsor migrant workers on the Skilled Worker route

b. have a valid CoS from your licensed employer with information about the role that you have been offered in the UK

c. be doing a job that is on the list of eligible occupations under the UK’s Immigration Rules

d. be paid the relevant minimum salary for the job role

e. be able to speak, read, write and understand English to at least Level B1 on the Common European Framework of Reference for Languages (CEFR) scale

f. have savings of at least £1,270 to show that you can support yourself on arrival in the UK or, alternatively, have your UK sponsor certify maintenance of this amount on your CoS.

 

When it comes to the maintenance requirement, you will only need to show funds of £,1270 or have your sponsor certify maintenance if you are applying for entry clearance to come to the UK, or you are applying to switch into this route from a different immigration route and you have not been in the UK for a minimum period of at least 12 months.

When it comes to the minimum skill and salary requirements, a Skilled Worker must have a job offer in an eligible occupation as set out in Appendix Skilled Occupations of the Immigration Rules. The occupation in question must also meet the Skilled Worker salary requirements as set out in Appendix Skilled Worker and Appendix Skilled Occupations. This means that the salary for skilled workers must meet or exceed the relevant minimum salary threshold, which for most job roles is at least £38,700 per year or the ‘going rate’ for the selected occupation, whichever is higher, unless a lower threshold applies.

 

3. Skilled Worker Sponsor Licence Requirements

 

There are a number of general and route-specific requirements that must be met to be approved by UKVI for a sponsor licence on the Skilled Worker route. To be eligible for sponsorship, the Home Office must be satisfied that your UK-based business is:

 

a. a genuine organisation that is operating lawfully in the UK

b. any owners, co-owners, directors and those responsible for the day-to-day running of your business are honest, dependable and reliable, and are not engaging and have not engaged in behaviour or actions that are not considered conducive to the public good

c. capable of carrying out its sponsor duties, in relation to the HR systems and recruitment practices in place in your business.

 

When processing a sponsor licence application, UKVI will look at the history and background of the business, including any evidence of previous non-compliance with the UK’s Immigration Rules. It will also take into account any criminal convictions and immigration violations committed by those involved in the day-to-day running of the business, including the key personnel named in the sponsor licence application.

The key personnel are the people nominated to manage the sponsorship process within your business, where each of your key personnel must usually be a paid member of staff or engaged as an office-holder and be based in the UK for the period that they will be required to fill the role they have been appointed to. Some or all of these individuals will have access to the Home Office sponsorship management system (SMS) in the event that a licence is approved, where the SMS can be used to issue CoS and comply with the sponsor duties.

In addition to the general requirements necessary to be eligible for a Skilled Worker sponsor licence, the applicant business must also be able to offer a job role that:

 

a. is genuine and not a sham, where UKVI must be satisfied that the role has not been created mainly so that you can apply for entry clearance or permission to stay in the UK

b. does not amount to the hiring of you as a worker to a third party who is not the sponsor, either to fill a position or to undertake routine contract work with that party

c. meets the minimum skill level and salary requirements for the Skilled Worker route.

 

4. Self Sponsorship & Genuine Vacancy Requirement

 

Importantly, being able to offer a suitably skilled and salaried job on the Skilled Worker route is not all UKVI will focus on when assessing the suitability of your business to sponsor you as a Skilled Worker. UKVI will not approve a sponsor licence if they have reasonable grounds to believe the job you are being sponsored to do either does not exist, or is a sham, for example, the job exists but you will not be doing it. Similarly, even if the job exists and you have every intention of working in that role if you are granted a visa to do so, UKVI will again not approve a sponsor licence if this job has been created mainly to provide you with a basis upon which to apply for a Skilled Worker visa to come to or stay in the UK.

When it comes to self sponsorship, the genuine vacancy requirement can represent a significant hurdle to your business obtaining a licence and you subsequently being granted a Skilled Worker visa, where any concerns from the UKVI caseworker deciding the licence application may lead to a pre-licence compliance visit to your UK-based business and/or an in-person interview with you as the visa applicant. The proposed sponsoring employer must be able to show a genuine need for the job as described, and you, as the proposed visa applicant, must have the appropriate qualifications, skills and experience to do that job.

Importantly, if the business that you own or partly own is already approved to sponsor Skilled Workers or other categories of migrant worker, compliance action may be taken against the business where UKVI forms the view that a job role has been specifically created to facilitate your visa application. This can include having its existing sponsor licence suspended, downgraded or revoked, the net effect of which could be the loss of sponsorship for any existing migrant workers and those workers even being forced to leave the UK.

Seeking the help of an immigration specialist at the earliest opportunity can help you to maximise the prospects of a successful outcome and, where applicable, minimise the risk of any action being taken against an existing sponsoring business and its migrant workforce.

 

5. How to Apply for a Skilled Worker Visa for Self-Sponsorship

 

To apply for a Skilled Worker visa — whether you are applying from overseas or to switch from a different immigration route to stay in the UK — you will need to complete an online form with UK Visas and Immigration (UKVI), the Home Office department responsible for issuing visas. As part of the application process, you will need to prove both your identity and nationality and submit a number of supporting documents.

You may also need to enrol your biometric information at either an overseas Visa Application Centre (VAC) or at a UK Visa and Citizenship Application Services (UKVCAS) service point from within the UK.

The way in which you prove your identity and nationality, and whether or not you will be required to attend a scheduled appointment, will depend on where you are from and what type of passport you have. You may be eligible to use the ‘UK Immigration: ID Check’ app to scan your passport. However, if you need to schedule an appointment to have a scan of your fingerprints and facial photograph taken, you will be told when you apply online.

 

6. Self Sponsorship Visa Application Form

 

The online application form will ask you a number of questions about the circumstances of your application. This form must be completed in English, and to be eligible for a Skilled Worker visa, you are required to be able to communicate in English, including in writing.

You will be asked if you have a current EU, EEA or Swiss passport. If you do and your passport has a biometric chip, you may be eligible to use the ID Check app to prove your identity and nationality. Having created a UKVI account, you can scan your passport and upload a photo of yourself. If you cannot use the app, you will instead need to attend an overseas VAC or UKVCAS service point after completing the online application form.

 

7. Self Sponsorship Visa Supporting Documents

 

In addition to a valid CoS, there are a number of supporting documents that will also be needed when making a self sponsorship visa application, including:

 

a. a valid passport or other travel document to prove your identity and nationality

b. proof of savings of at least £1,270 in your bank account, where applicable

c. proof of your English language ability, where applicable

d. a tuberculosis test certificate if you are from a listed country

e. a criminal record certificate if you will be working in education, health or social care.

 

Additional documentation may also be required, depending on your circumstances. Taking advice on your application will help ensure you provide a comprehensive submission, to avoid processing delays and a potential visa refusal.

You should be able to upload your supporting documents using your online account with UKVI or, alternatively, you can take them with you to your scheduled biometrics appointment.

 

8. Skilled Worker Visa Fees for Self Sponsored Applicants

 

When you apply for a Skilled Worker visa, you will be required to pay an application fee, which varies depending on your circumstances.

 

Table: Skilled Worker Visa Application Fees:
Fee category
Fee – Applying from Outside the UK
Fee – Applying from Inside the UK
Skilled worker, where a certificate of sponsorship has been issued for 3 years or less – main applicant and dependants
£719
£827
Skilled Worker, where a certificate of sponsorship has been issued for over 3 years – main applicant and dependants
£1,420
£1,636
Skilled Worker – a job on the Immigration Salary List where a certificate of sponsorship has been issued for three years or less – main applicant and dependants for the applications made with a Certificate of Sponsorship issued on or after 4 April 2024
£551
£551
Skilled Worker – a job on the Immigration Salary List where a certificate of sponsorship has been issued for over three years – main applicant and dependants for the applications made with a Certificate of Sponsorship issued on or after 4 April 2024
£1,084
£1,084
Skilled Worker – Health and Care Visa – where a certificate of sponsorship has been issued for 3 years or less – main applicant and dependants
£284
£284
Skilled Worker – Health and Care Visa – where a certificate of sponsorship has been issued for over 3 years – main applicant and dependants
£551
£551
Skilled Worker – a job on the Immigration Salary List – Health and Care Visa – where a certificate of sponsorship has been issued for three years or less – main applicant and dependants for the applications made with a Certificate of Sponsorship issued on or after 4 April 2024
£284
£284
Skilled Worker – a job on the Immigration Salary List – Health and Care Visa – where a certificate of sponsorship has been issued for over three years – main applicant and dependants for the applications made with a Certificate of Sponsorship issued on or after 4 April 2024
£551
£551

 

You will also be required to pay the Immigration Health Surcharge (IHS) per year of stay to allow you to access the UK’s National Health Service (NHS) for the duration of your visa. The IHS is £1,035 per applicant per year of stay.

Also payable is the fee for issuing a CoS per sponsored worker, which is £239 and is paid by the sponsor.

 

9. Skilled Worker Visa Processing

 

Once you have proved your identity and nationality, provided your supporting documentation and paid the fees, you should receive a decision on your Skilled Worker visa within a period of 3 weeks if applying from outside the UK or 8 weeks if applying from inside the UK.

However, your visa application may take longer if, for example, your supporting documents need to be verified, or you need to attend an in-person interview, or if you have a criminal conviction and additional checks or information is required.

You will be notified shortly after receipt of your application if processing is likely to be delayed.

You may be able to pay for a faster decision, although not all locations offer priority services. You will be advised when you apply if priority services are available.

If you are applying for a Skilled Worker visa from outside the UK, you can pay an additional £500 for a decision within 5 working days or an additional £1000 for a decision by the end of the next working day.

If you are applying to switch to the Skilled Worker visa from inside the UK, you will pay an additional £500 and £800 respectively to use these services.

However, in either case, you cannot get a decision by the end of the next working day if you use the ID Check app to apply.

Equally, if your visa application is not straightforward, paying for a priority service does not necessarily guarantee a faster decision, nor does it guarantee a positive outcome.

 

10. Skilled Worker Visa Dependants

 

Your partner and dependent children can also apply to join you in the UK if they are eligible. They can apply after your visa has been granted, or at the same time as you. If their application is successful, their visa will end on the same date as yours.

Each applicant will need to pay a separate fee to apply for a Skilled Worker visa, including a fee for any priority processing. They will also need to pay the healthcare surcharge for each year of stay.

They will also each need to satisfy a financial requirement, showing funds of £285 for your spouse or partner, £315 for the first child and £200 for each additional child. This is in addition to the requirement under this route for you to show funds of £1,270, where applicable.

 

11. Extending the Skilled Worker Visa

 

Having lived and worked in the UK on a Skilled Worker visa, you can apply to extend your stay shortly prior to its expiry, provided you continue to meet the relevant requirements. This means that you must continue to be employed in an eligible job role for your business, one which meets the minimum skill and salary requirements at the time you apply, where your business will need to assign you a fresh sponsorship certificate as evidence of this.

You can apply to extend your visa from within the UK using the online form. You will be required to pay a new application fee, together with the healthcare surcharge. Any dependants who are living with you in the UK on this route can also apply to extend their stay, either at the same time or shortly prior to expiry of their own visa(s), where different.

 

Section F: Ongoing Sponsorship Duties

 

The final stage of the Self Sponsorship Visa process involves meeting the ongoing compliance obligations, both as a sponsor licence holder and as a Skilled Worker Visa holder.

Failure to meet these obligations can lead to penalties, such as loss of your sponsor licence and even visa cancellation.

 

1. Sponsor Licence Holder Obligations

 

As a sponsor licence holder, your business takes on the responsibility of ensuring that you, and any other sponsored employees, adhere to strict requirements set by the UK Home Office. These responsibilities are designed to ensure that businesses are genuinely sponsoring skilled workers and complying with the immigration rules.

 

a. Monitoring Sponsored Employees

As a sponsor licence holder, you must actively monitor the visa status of any sponsored employees, including yourself. This includes:

 

i. Keeping track of visa expiration dates and ensuring that renewals are applied for in time.

ii. Ensuring that sponsored employees (including yourself) are working in the role specified in the CoS, with the required salary and job title.

iii. Monitoring work hours, locations, and conditions to ensure they match what was reported in the visa application.

 

b. Record-Keeping

Your business must maintain accurate and up-to-date records for all sponsored employees. These include:

 

i. Copies of passports, visas, and where relevant Biometric Residence Permits (BRPs).

ii. Employment contracts and salary information.

iii. Evidence of qualifications and professional accreditations.

 

c. Records of attendance and absence, including sick leave and holidays.

These records must be readily available for inspection by the Home Office at any time.

 

d. Reporting to the UK Home Office

You are required to notify the UK Home Office of any changes in the status of sponsored employees, including yourself. This includes:

 

i. Changes in employment status: If an employee’s job role changes, they leave the company or if there are significant changes to their salary or working conditions.

ii. Changes to your business: If the business changes ownership, relocates, or undergoes any significant restructuring, the Home Office must be informed.

iii. Non-compliance or breaches: If a sponsored worker does not meet the visa conditions (e.g., missing work for extended periods without explanation), it must be reported.

 

Notifications to the Home Office must typically be made within 10 working days of the change through the SMS.

 

e. Home Office Compliance Audits

The UK Home Office may conduct compliance checks or audits at any time. These checks ensure that your business is meeting its sponsor duties. During these audits, the Home Office will review your employee records, financial standing, and compliance with sponsor licence duties. Non-compliance could result in penalties, suspension, or revocation of your sponsor licence.

 

2. Skilled Worker Visa Holder Obligations

 

As a Skilled Worker visa holder (in this case, self-sponsored), you also have specific obligations to remain compliant with UK immigration laws. Failure to comply can lead to visa cancellation and impact your ability to stay and work in the UK.

 

a. Working in the Approved Role

As a Skilled Worker Visa holder, you must work in the role specified in your Certificate of Sponsorship. The job title, description, and salary must match what was submitted in your visa application. You cannot switch to a different role without updating your sponsor licence and, in some cases, submitting a new visa application.

 

b. Meeting Salary Requirements

Your salary must meet the relevant minimum threshold, as specified by the UK Government, for your role. For self-sponsorship, it’s important to ensure that your business can continue to pay you the required salary as per your visa conditions.

If your salary drops below the required level, this could breach the terms of your visa.

 

c. Maintaining Valid Visa Status

You must ensure that your visa remains valid. This includes extending your visa before it expires, and ensuring that your passport is kept up to date.

 

d. Reporting Changes in Circumstances

You are required to notify the UK Home Office through the SMS of significant changes in your personal circumstances, such as:

 

i. A change of address or contact details.

ii. Any changes to your marital status or if you have dependents joining or leaving the UK.

iii. Any changes to your immigration status if you apply for Indefinite Leave to Remain (ILR) or switch to another visa category.

 

Section G: Innovator Founder as an Alternative to Self Sponsorship

 

While self sponsorship offers a certain degree of control and flexibility to business owners, the eligibility and evidentiary requirements are strict, which may deter some from pursuing this immigration route.

As an alternative, you may consider the Innovator Founder visa, which is the primary visa option for foreign national business owners and entrepreneurs.

 

1. What is the Innovator Founder Visa?

 

The UK Innovator Founder visa is aimed at overseas entrepreneurs looking to set up and run a business in the UK. As with the previous Innovator and Start-up routes, the Innovator founder route is not a sponsored work route. This means that an entrepreneur can essentially self sponsor, provided they meet the relevant requirements.

This re-branded route has also introduced a number of favourable changes to attract foreign entrepreneurial talent to the UK, including the removal of the £50,000 minimum investment requirement previously required under the Rules.

However, there are various strict eligibility requirements that must be met, as set out under Appendix Innovator Founder of the UK’s Immigration Rules, including an English language and financial requirement, as well as a complex endorsement requirement.

Before you can apply for the visa, you first have to secure endorsement for your business idea from an authorised body.

The endorsement process involves making an application to the appropriate endorsement body for your industry, which will then assess if your business idea is innovative, viable and scalable:

 

a. Innovative: your business meets new market needs and/or creates a competitive advantage.

b. Viable: your business idea must be both realistic and achievable based on the resources available to you, whereby you have the knowledge, skills, experience and market awareness to successfully run your new UK business

c. Scaleable: you can show evidence of planning and potential for job creation in the UK, as well as growth into both national and international markets.

 

Only with endorsement can you proceed to make the visa application.

If granted, this visa enables the applicant to live and work in the UK while developing their business. It is initially granted for 3 years, with the option to extend or apply for Indefinite Leave to Remain (ILR) if the business meets growth and sustainability criteria.

 

2. Self Sponsorship v. Innovator Founder Visa

 

The Innovator Founder Visa and Self Sponsorship under the Skilled Worker Visa are both routes to setting up a business in the UK, but they differ significantly in focus and requirements.

The Innovator Founder visa is designed for entrepreneurs who have a truly innovative business idea that is endorsed by an approved body. The idea must be new, unique, and scalable in the UK market.

This visa requires applicants to demonstrate a high level of innovation and market potential. It is granted for three years and can lead to Indefinite Leave to Remain (ILR), provided the business shows growth and sustainability. The visa is suitable for those aiming to develop groundbreaking products or services and is less focused on traditional employment structures.

In contrast, Self Sponsorship under the Skilled Worker visa allows individuals to set up and run a business in the UK while sponsoring themselves as an employee of that business. This route does not require an innovative idea, but focuses more on meeting traditional business, compliance and employment criteria, such as securing a sponsor licence and meeting salary thresholds. It is ideal for entrepreneurs who wish to maintain more control over their employment and business operations without needing external endorsement.

For potential applicants, the choice depends on whether their business is innovation-driven or focused on fulfilling skilled worker and employment needs.

 

Section H: Summary

 

A Sponsorship Visa UK allows individuals to sponsor themselves for a visa by establishing a UK-based business. This route is often chosen by entrepreneurs or skilled professionals who wish to work in the UK without needing a traditional employer sponsor.

The process involves several key stages. The first stage is to either acquire an existing UK-based business, or set up a legitimate business in the UK by registering the company with Companies House and meeting legal and tax requirements.

The next step is for the UK company to apply for a sponsor licence from the UK Home Office for permission to sponsor foreign workers, which in this case would include the applicant themselves.

Once the sponsor licence is granted, the business can issue a Certificate of Sponsorship (CoS), allowing the applicant to apply for a Skilled Worker visa. The visa application process includes submitting the CoS, proving financial stability, and meeting English language requirements.

The company must ensure that it meets the ongoing compliance and licence management duties, including keeping records, monitoring employee visa statuses, and reporting any changes to the Home Office. Maintaining compliance ensures the sponsor licence remains valid, allowing the business to continue operating and sponsoring employees.

 

Section I: Need Assistance?

 

DavidsonMorris are UK immigration specialists with extensive expertise in helping business owners, entrepreneurs and investors secure a visa to live, work and grow their business interests in the UK.

To discuss your visa options to run your own company or work yourself in the UK, whether through a self sponsorship visa or an alternative route, contact us.

 

Section J: Self sponsorship Visa FAQs

 

What is a Self Sponsorship Visa UK?
A Self Sponsorship Visa allows individuals to set up and run a business in the UK, sponsoring themselves as an employee of that business. It’s an option for entrepreneurs or skilled workers who want to live and work in the UK without needing a traditional employer sponsor.

 

Who is eligible for a Self Sponsorship Visa?
Eligibility includes having a viable business idea, setting up a registered business in the UK, obtaining a sponsor licence, and meeting the financial and English language requirements. Applicants must also ensure they comply with UK immigration laws.

 

How can I self sponsor my visa?
There is no dedicated self sponsorship visa in the UK, although it may be possible to either set up or buy into a UK-based business, which can then apply to sponsor you on the Skilled Worker route.

 

Can you self sponsor Skilled Worker visa?
While there is no dedicated self sponsorship visa UK, it may be possible to establish or invest in a UK-based business and, having been approved for a licence, arrange for your business to sponsor you for a Skilled Worker visa.

 

Can a sole trader sponsor someone UK?
Only organisations can apply for a licence from the UK Home Office to sponsor someone to work.

 

What is a sponsor licence?
A sponsor licence is the permission granted by the UK Home Office to employers to hire certain categories of migrant workers to undertake employment in the UK in both short and long-term job roles including, for example, Temporary Workers or Skilled Workers.

 

How do I apply for a sponsor licence?
You need to submit an application to the UK Home Office, demonstrating that your business is legitimate and can comply with sponsorship duties. This includes proving you can monitor employees’ immigration status and meet all sponsor obligations.

 

What is a Certificate of Sponsorship (CoS)?
A Certificate of Sponsorship (CoS) is a digital document issued by a licensed sponsor, confirming that an individual has a job offer in the UK. It is required when applying for a Skilled Worker Visa.

 

Can I bring my family with me on a Self Sponsorship Visa?
Yes, you can bring your dependents (spouse/partner and children) to the UK under your Self Sponsorship Visa, provided you meet the financial requirements to support them.

 

What are the ongoing responsibilities after obtaining a Self Sponsorship Visa?
Once your business holds a sponsor licence, you must comply with UK immigration regulations, including record-keeping, reporting changes to the Home Office, and ensuring that you and any sponsored employees continue to meet visa conditions.

 

How long is the Self Sponsorship Visa valid?
The visa is typically valid for up to five years. After this period, you may apply for an extension or seek Indefinite Leave to Remain (ILR), which allows permanent residency.

 

Can I switch from another visa to a Self Sponsorship Visa?
In many cases, it is possible to switch to a Self Sponsorship Visa from other visa types, provided you meet the eligibility criteria and have established a UK-based business.

 

What are the common mistakes to avoid in the application process?
Common mistakes include submitting incomplete business plans, misunderstanding financial requirements, or incorrectly completing the sponsor licence application. Ensuring all documents are accurate and meeting all requirements will help avoid delays or rejection.

 

Section K: Glossary

Term
Definition
Self Sponsorship Visa
A general term used to describe use of the Skilled Worker visa by individuals to set up their own UK based company which ten sponsors them.
Sponsor Licence
A licence issued by the UK Home Office that allows businesses to sponsor foreign workers, including self-sponsorship applicants.
Certificate of Sponsorship (CoS)
A digital certificate issued by a licensed sponsor that confirms the individual’s eligibility to apply for a work visa.
UKVI (UK Visas and Immigration)
The official UK government body responsible for processing visa and immigration applications.
Business Plan
A document outlining the objectives, market research, and financial projections of a business, essential for visa applications.
Biometric Residence Permit (BRP)
An identification card issued to non-UK residents, confirming their right to live and work in the UK.
Indefinite Leave to Remain (ILR)
Permanent residency in the UK, allowing individuals to live and work indefinitely without time restrictions.
Immigration Health Surcharge (IHS)
A fee paid during visa applications that grants access to the UK’s National Health Service (NHS).
English Language Requirement
A criterion requiring visa applicants to demonstrate proficiency in English through an approved test or educational qualification.
Visa Application Centre (VAC)
A location where visa applicants complete biometric processes, such as fingerprinting and photographs, for their application.
Financial Requirement
Proof of sufficient funds to support oneself and any dependents during the visa period, without relying on public funds.
Dependents
Family members (such as a spouse or children) who are eligible to join the main visa holder in the UK.
Companies House
The UK’s official registrar of companies, where businesses are legally registered.
Biometric Information
Data such as fingerprints and photographs collected as part of the visa application process.
Priority Service
A faster visa processing service offered by the UK Home Office for an additional fee.
Criminal Record Certificate
A document proving the applicant has no criminal convictions, required for certain visa types.
Market Research
The process of gathering information about market demand, competition, and customer needs, typically part of the business plan.
Public Funds
Government-provided financial support, such as welfare or housing benefits, which visa holders cannot access.
National Recognition Information Centre (UK NARIC)
The UK agency responsible for assessing foreign qualifications for their equivalency to UK standards.

 

Section L: Additional Resources

 

UK Visas and Immigration (UKVI)
https://www.gov.uk/government/organisations/uk-visas-and-immigration
The official UK government website offering detailed guidance on visa types, application processes, and UK immigration rules.

 

Apply for a Sponsor Licence
https://www.gov.uk/uk-visas-sponsorship
Comprehensive information on how businesses can apply for a sponsor licence, including eligibility criteria and sponsor responsibilities.

 

Register a Business with Companies House
https://www.gov.uk/limited-company-formation/register-your-company
Official guidance on registering a limited company with Companies House, including required documents and the registration process.

 

Business Plan Writing Guide
https://www.gov.uk/write-business-plan
A helpful guide for writing a detailed business plan, covering market research, financial projections, and business strategy, which is essential for visa applications.

 

Corporation Tax and PAYE Registration
https://www.gov.uk/corporation-tax
Information on registering your business for corporation tax and PAYE with HMRC, explaining how to calculate, pay, and report your business taxes.

 

Approved English Language Tests
https://www.gov.uk/english-language
A list of approved English language tests required for visa applications, and how to meet the English language proficiency requirement for UK visas.

 

Indefinite Leave to Remain (ILR) Application
https://www.gov.uk/indefinite-leave-to-remain
Detailed guidance on applying for ILR after spending the required period on a self-sponsorship visa, which is a pathway to permanent residency.

 

Visa Application Centre Locations
https://www.gov.uk/find-a-visa-application-centre
Find your nearest Visa Application Centre for biometric appointments, including submitting fingerprints and photographs as part of your visa application.

 

Immigration Health Surcharge (IHS)
https://www.gov.uk/healthcare-immigration-application
Information on the Immigration Health Surcharge (IHS), which grants access to the National Health Service (NHS) for visa holders in the UK.

 

Author

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility.

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners, we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

Read more about DavidsonMorris here

 

Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.

Contact DavidsonMorris
Get in touch with DavidsonMorris for general enquiries, feedback and requests for information.
Stay in the know!
Sign up to our updates for employers:
Want to hear about our latest training webinars?
Find us on: