Given the fast-evolving nature of business and technology these days, employers are always on the lookout for talented and skilled workers globally. More so for startups as they are the most innovative and disruptive forces in their respective sectors, and thus actively need to hire niche talent to stay ahead of their competitors.
If you are a startup founder and want to hire overseas talent to come and work for you in the UK, you will need to issue them a certificate of sponsorship (CoS) for immigration purposes. To do so, you must hold a valid sponsor licence in the UK. Read on to understand when you can apply for a UK sponsor licence, what requirements you must fulfil, and what are your duties and responsibilities as a sponsoring employer.
How Soon Can a New UK Business Sponsor Workers?
You can start sponsoring migrant workers only after you get a valid sponsor licence as an employer in the UK. As soon as your startup company is established as a legitimate business operating legally on the UK soil, you may apply for the said licence. You must also pass the genuineness test as a would-be sponsoring employer by proving that:
- You have a genuine vacancy for the overseas worker you intent to hire, which cannot be filled with a similarly qualified or skilled worker in the UK, and
- You are able to offer them genuine employment, which meets the appropriate salary and skill level for the concerned vacancy
Plus, you must:
- Have appropriate systems in place to monitor sponsored workers, and key personnel to manage sponsorship in your startup company
- Have suitable HR systems, policies and processes in place to meet your sponsor duties
- Not have unspent criminal convictions for immigration offences or financial crimes like money laundering, fraud etc.
- Not have had a sponsor licence revoked in the last 12 months
When Do Startups Need Certificate of Sponsorship UK?
New business founders often seem to be asking this question: when should a UK startup apply for a sponsor licence? The answer is, as soon as you have finalised your hiring plan for the foreseeable future, and have identified in the process the requirement for recruiting foreign talent.
UK Visas and Immigration (UKVI) may take up to eight weeks to decide on a sponsor licence application. If their officials visit your business premises for a compliance check and find anomalies, or ask for additional supporting documents, this timeline may increase.
You will not need to issue a CoS unless and until you have zeroed in on the foreign worker you wish to hire. Once you have done so, issue them a CoS so that they can apply for a suitable UK work visa.
Documents Needed for Startup Sponsor Licence UK
The supporting documentation required for a sponsor licence varies depending a) on the type of your company, and b) for how long you are lawfully operating in the UK. You may anyway need the following documents:
- Latest audited or unaudited account statements
- Employer’s liability insurance certificate (of at least £5 million in insurance from an authorised insurer)
- Certificate of VAT registration
- HMRC registration evidence, such as your PAYE and accounts office reference numbers
- Proof of ownership of, or a commercial lease for, business premises
- Proof of registration if you are required to be registered with and/or inspected or monitored by a regulatory body to legally operate in the UK
Startup companies operating in the UK for less than 18 months need to submit additional proof that they have a corporate or business account with a UK bank or building society. The said bank or building society must be authorised and regulated by the Prudential Regulation Authority and the Financial Conduct Authority.
Cost of Certificate of Sponsorship for Startups UK
The cost of a CoS depends on the immigration route your foreign worker is going to take. For a Skilled Worker visa or a Senior or Specialist Worker visa, each CoS will cost you [generator shortcode=”uk-cos_senior_specialist_worker_fee”].
For other Global Business Mobility routes, or if you are hiring a foreign worker on a temporary basis, you will need to pay a fee of [generator shortcode=”uk-cos_temporary_worker_fee”] per CoS.
Sponsor Duties and Compliance for UK Startup Hiring Overseas Talent
A UK sponsor licence comes with certain responsibilities, which as the startup owner you must meet to keep your licence valid. There are four main responsibilities:
- Record-keeping: Maintain relevant records relating to your sponsored staff, such as their right to work in the UK, contact details, passports, immigration status, etc.
- Monitoring and reporting: Set up systems and processes to track and monitor your sponsored employees. Notify the Home Office immediately if any concerns
- Absence monitoring: Authorise and record all absences of your sponsored employees
- Notifying the Home Office of changes in circumstances: Changes in key personnel or business premises, opening or closing new branches, etc. must be immediately reported to the Home Office
Certificate of Sponsorship Process for UK Skilled Worker Visa
There are two types of CoS. If your foreign worker is applying for a Skilled Worker visa from outside the UK, you must issue them a defined CoS. If they are switching to a Skilled Worker visa from their current visa in the UK, you will assign them an undefined CoS.
You can apply for a defined or undefined CoS via your sponsor management system (SMS) tool only after obtaining a valid sponsor licence. The process will vary depending on whether a defined or undefined certificate is required.
Certificate of Sponsorship UK Startups: Ask When in Doubt
To counter any work visa abuse by employers or foreign employees, UKVI closely monitors whether you (and your sponsored staff) are complying with your sponsor licence/CoS/visa conditions. Any breach may result in the revocation or cancellation of your licence, jeopardising your startup operations in the UK.
It is highly recommended to enlist professional help to avoid any such situations. Consult a professional business immigration lawyer as soon as you have identified the need to hire foreign talent for a smooth sailing of your UK startup journey.