Hiring international talent can be a game-changer for small businesses in the UK. But can small businesses sponsor Skilled Worker Visas? The short answer is YES—small businesses can apply for a Sponsor Licence and hire overseas workers, just like large companies. However, there are specific costs, compliance requirements, and challenges that small businesses must navigate.
In this guide, we’ll cover:
✅ How small businesses can apply for a Sponsor Licence
✅ The cost of sponsoring a Skilled Worker Visa
✅ Key compliance rules to avoid penalties
✅ Challenges small businesses face & how to overcome them
✅ Step-by-step process to hire overseas talent
Let’s get started! 🚀
1. Can Small Businesses Sponsor Skilled Worker Visas?
Yes! Small and medium-sized enterprises (SMEs) can apply for a Sponsor Licence and hire non-UK workers under the Skilled Worker Visa route.
📌 Key Requirements for Small Businesses to Sponsor a Visa:
✔️ Must be a legally registered UK company (Companies House)
✔️ Must have a genuine job vacancy that meets Skilled Worker Visa criteria
✔️ Must be able to pay visa sponsorship costs & salary requirements
✔️ Must have an HR system to track visa compliance
📌 Common Industries Hiring Skilled Workers:
✅ Healthcare & Social Care – Nurses, care workers, paramedics
✅ IT & Tech – Software engineers, data analysts, cybersecurity experts
✅ Construction & Engineering – Civil engineers, architects, surveyors
✅ Hospitality & Tourism – Chefs, hotel managers, event coordinators
Even if your business is small, you can sponsor foreign workers if you meet UKVI requirements.
2. How to Get a Sponsor Licence as a Small Business
Before you can hire overseas employees, your business must apply for a Skilled Worker Sponsor Licence from the UK Home Office.
Step 1: Check Your Eligibility
Your company must:
✔️ Be legally registered in the UK (with Companies House)
✔️ Have a genuine job vacancy that meets visa requirements
✔️ Have the ability to pay the worker’s salary & sponsorship costs
✔️ Show that you have an HR system to track compliance
Step 2: Gather Required Documents
📌 You’ll need to submit at least four supporting documents, such as:
✔️ Companies House registration certificate
✔️ Business bank statements
✔️ Employer liability insurance (minimum £5M coverage)
✔️ VAT registration (if applicable)
✔️ HMRC registration for PAYE & tax returns
🚀 Tip: Missing documents delay approvals, so double-check before applying!
Step 3: Apply Online & Pay the Sponsor Licence Fee
- Apply via the UK Home Office website
- Pay the Sponsor Licence application fee (see costs below)
- Submit supporting documents
Step 4: Pass UKVI Compliance Checks
The Home Office may visit your business to check:
✅ Whether you have a real business & genuine job vacancies
✅ If your HR system can track visa compliance
✅ That you can pay salaries & visa sponsorship fees
If you pass, your company will be granted a Sponsor Licence and added to the UK list of approved sponsors! 🎉
3. How Much Does It Cost for a Small Business to Sponsor a Skilled Worker?
Sponsoring a Skilled Worker comes with several costs, but small businesses pay lower fees than large companies.
Breakdown of Visa Sponsorship Costs for Small Businesses (2024)
| Expense | Cost for Small Businesses |
|---|---|
| Sponsor Licence Application Fee | £536 |
| Certificate of Sponsorship (CoS) Fee | £199 per worker |
| Immigration Skills Charge (ISC) (per year) | £364 per worker |
| Skilled Worker Visa Fees (paid by employee) | £610 – £1,500 |
| Immigration Health Surcharge (IHS) (paid by employee) | £1,035 per year |
📌 Total Sponsorship Cost for a 3-Year Skilled Worker Visa:
💰 £1,692 (paid by employer) + visa fees (paid by employee)
🔹 Can Employers Cover Visa Fees? Yes! Some businesses pay visa fees as part of the job offer to attract top talent.
4. Compliance Rules for Small Businesses Sponsoring Skilled Workers
Once you sponsor a Skilled Worker, your business must:
✔️ Monitor visa expiry dates and renew sponsorship when needed
✔️ Report changes to UKVI (job title, salary changes, worker resignation)
✔️ Prevent illegal working by conducting Right-to-Work checks
✔️ Keep up-to-date employee records
🚨 Failure to comply can result in:
❌ Sponsor Licence suspension or revocation
❌ Fines up to £20,000 per illegal worker
❌ Being banned from hiring foreign workers
🚀 Tip: Use an immigration expert to ensure compliance & avoid penalties!
5. Challenges Small Businesses Face & How to Overcome Them
📌 1. Cost of Sponsorship
✔️ Use the Shortage Occupation List to pay lower salaries
✔️ Hire workers who already have UK work rights (e.g., Graduate Visa holders)
📌 2. Understanding Compliance Rules
✔️ Use HR software to track visa renewals & employee records
✔️ Assign a dedicated compliance officer to handle sponsorship duties
📌 3. Finding Overseas Talent
✔️ Advertise jobs on Skilled Worker Visa job boards
✔️ Work with international recruitment agencies
6. Can a Sole Trader Sponsor a Skilled Worker Visa?
🔹 No, sole traders cannot apply for a Skilled Worker Sponsor Licence.
🔹 However, if you run a limited company, you can apply.
🚀 Solution: If you’re a sole trader, consider setting up a limited company to qualify for sponsorship!
7. Final Thoughts – Is Sponsoring Skilled Workers Right for Your Small Business?
Sponsoring skilled workers can help small businesses grow by filling key talent gaps. However, the process requires careful planning, financial investment, and compliance management.
✅ Key Takeaways:
✔️ Small businesses CAN sponsor Skilled Worker Visas if they meet UKVI requirements.
✔️ The cost is lower for small companies (£536 licence fee vs. £1,476 for large businesses).
✔️ Businesses must stay compliant to avoid fines & licence revocation.
✔️ Finding the right candidate is crucial—use job boards & recruitment agencies.
✔️ Consider professional immigration advice to simplify the process.
📌 Need help with UK visa sponsorship? Contact an immigration expert today!