The initial sponsor licence application is made to the Home Office, and the application consists of two parts: (if) an online application form and (ii) submission of various documents to show that the company really exists, that it is trading, and that it pays its taxes and obeys the relevant laws. In the form the company has provide various information about itself, explain why it wants a sponsor licence, and must appoint an officeholder or officeholders in connection with the administration of sponsor licence activities.

Following this the Home Office might or might not make a physical inspection (audit) of the employer’s premises. The focus of this is likely to be on the company’s HR systems and, most particularly, whether they are sufficiently robust and efficient to deal with employees who are under immigration control. However, the Home Officials can look at any other aspects of the company’s premises they think appropriate. It is not possible to predict whether the Home Office will carry out an audit or not.

If the Home Office are satisfied with everything the sponsor licence will be granted, for four years. If they are not satisfied the application will be either rejected or refused and, in some cases, there is a “cooling off” period before a new application can be submitted.

If the Home Office become aware of something they are not happy with during the four-year period of grant they may downgrade the licence’s rating, which limits the company’s sponsorship activities. If they become aware of something they regard as sufficiently serious they can suspend or revoke the licence with immediate effect. If the licence is revoked the employer will not be able to continue to employ the relevant migrants, and so of course it is important for the company to keep a close eye on its sponsorship activities.

An employer can hold more than one type of sponsor licence, and if they already hold one or more types of sponsor licence they can apply for another type.

After four years the employer can apply to renew the sponsor licence for a further four years; this application is typically not as onerous as the initial application.