Self-Sponsorship Licence UK: A Complete Guide

What is a Self-Sponsorship Licence?

A Self-Sponsorship Licence is a specific immigration arrangement that enables business owners to establish a UK company and obtain permission to work in their own business through the Skilled Worker visa route. This option combines business ownership with immigration status, allowing entrepreneurs to operate as both the sponsoring employer and sponsored employee under the UK’s points-based immigration system.

Core Benefits:

Start and operate your UK-based business
Issue your own Certificate of Sponsorship
Develop your business in the UK market
Progress toward permanent residence after 5 years

Who Can Apply for a Self-Sponsorship Licence?

The eligibility criteria for a Self-Sponsorship Licence focus on ensuring applicants possess the necessary business acumen, financial resources, and professional capabilities to establish and maintain a successful enterprise in the UK market.

Primary Candidates:

Entrepreneurs ready to start a UK business
International business owners expanding to Britain
Professionals whose skills meet Skilled Worker criteria
Individuals with adequate financial resources

Essential Qualifying Criteria:

Business Requirements:
- Detailed, viable business plan
- Proof of relevant experience
- Evidence of market research
- Financial projections
Personal Requirements:
- English language ability at B1 CEFR or higher
- Clear immigration record
- No relevant criminal convictions
- Proof of available funds

The Self-Sponsorship Process: Step-by-Step Guide

3.1 How to Set Up a UK Business

The establishment of a UK business forms the foundation of your self-sponsorship application. This process requires careful attention to legal requirements, documentation, and operational considerations.

Business Structure Selection

Private Limited Company requirements:
- At least one director
- Registered office address
- Share capital structure
- Articles of association
- Statement of capital

Companies House Registration

Name availability check
Standard Industrial Classification (SIC) code selection
Director information submission
Shareholder details
Person with Significant Control (PSC) registration

Essential Business Documentation

Certificate of incorporation
Memorandum of association
Share certificates
Company statutory books
Business insurance policies

3.2 Applying for a Sponsorship Licence

The sponsorship licence application process demands meticulous preparation and attention to detail. Success depends on demonstrating your business’s legitimacy and ability to meet sponsorship obligations.

Pre-Application Requirements

Business plan with financial projections
Lease or property ownership evidence
Bank statements (minimum 3 months)
VAT registration (if applicable)
Employer’s liability insurance

Key Personnel Appointments

Authorising Officer (most senior role)
Key Contact
Level 1 User
Compliance Officer

Systems Implementation

HR management software
Time and attendance tracking
Right to work check procedures
Sponsor management processes
Document storage system

3.3 Issuing a Certificate of Sponsorship (CoS)

A Certificate of Sponsorship represents a critical document that serves as your formal employment offer and confirms meeting sponsorship requirements.

CoS Requirements:

Role Details:
- Job description matching SOC code
- Salary meeting minimum thresholds
- Working hours and conditions
- Location of employment
Compliance Elements:
- Genuine vacancy evidence
- Skill level documentation
- Market rate salary proof
- Recruitment records

3.4 Applying for the Skilled Worker Visa

The Skilled Worker visa application represents the final stage in securing your right to work in your UK business.

Application Components:

Valid CoS reference number
English language certification
Maintenance funds evidence
Qualification documents
Health surcharge payment

Bringing Family Members: Spouse, Partner, and Children

The Self-Sponsorship route allows for family unification, enabling qualifying dependents to join you in the UK.

Eligible Dependents:

Spouse/Partner Requirements:
- Marriage/civil partnership certificate
- Relationship evidence
- Financial dependency proof
- English language requirements
Children Requirements:
- Birth certificates
- Custody documentation
- Education records
- Healthcare arrangement

Salary Requirements Through the Self-Sponsorship Route

Minimum Salary Thresholds:

Standard Occupations:
- General minimum: £26,200 per year
- Industry-specific rates
- Experience-based variations
- Pro-rata calculations for part-time
New Entrant Rates:
- Basic threshold: £23,580 annually
- Graduate scheme adjustments
- Age-related considerations
- Training period allowances

Investment Requirements to Set Up a Business in the UK

Essential Financial Requirements:

Operating Capital:
- Staff salaries (minimum 12 months)
- Premises costs
- Equipment and supplies
- Marketing budget
Contingency Funds:
- Emergency reserves
- Expansion capital
- Regulatory compliance costs
- Professional service fees

Visa Duration: Temporary or Permanent Residency Options

Visa Timeline:

Initial Period:
- Up to 5 years initial grant
- Extension options available
- Multiple entry clearance
- Travel flexibility
Settlement Pathway:
- ILR eligibility after 5 years
- Continuous residence requirements
- Income thresholds
- Life in the UK test

Risks and Challenges of Self-Sponsorship

Primary Risk Areas:

Business Operations:
- Market competition
- Economic fluctuations
- Cash flow management
- Growth sustainability
Compliance Obligations:
- Sponsor duties maintenance
- Record-keeping requirements
- Reporting responsibilities
- Audit preparations

Opportunities Offered by the Self-Sponsorship Route

Key Opportunities:

Business Development:
- Market access
- Industry networks
- Innovation potential
- Growth scalability
Professional Growth:
- Skill development
- Industry recognition
- Business partnerships
- Market influence

Sectors Open to Self-Sponsorship in the UK

The UK welcomes entrepreneurs across various sectors, with particular emphasis on industries that contribute to economic growth and innovation. Each sector presents distinct opportunities and requirements for self-sponsorship applicants.

Primary Sectors:

Technology and Digital: The technology sector offers extensive opportunities for self-sponsorship, particularly in:
- Software development
- Digital services
- IT consulting
- Cybersecurity
Professional Services: This sector encompasses knowledge-based services with high demand in the UK market:
- Business consulting
- Legal services
- Accounting
- Marketing agencies
Healthcare: The healthcare sector provides opportunities for both clinical and non-clinical services:
- Medical practices
- Healthcare technology
- Specialist services
- Therapeutic services
Education: The education sector offers diverse opportunities for innovative service providers:
- Training providers
- Language schools
- Educational technology
- Professional development

Types of Businesses Eligible for Self-Sponsorship

Eligible Business Types:

Service-Based Companies:
- Consulting firms
- Professional practices
- Technical services
- Creative agencies
Product-Based Businesses:
- Manufacturing
- Retail operations
- Technology products
- Import/export

The Role of the Authorising Officer

Core Responsibilities:

Licence Management:
- System access control
- User permission oversight
- Compliance monitoring
- Report submission
Personnel Supervision:
- Staff training
- Right to work checks
- Record maintenance
- Policy implementation

What Happens If the Authorising Officer Leaves the Company?

Required Actions:

Immediate Steps:
- Home Office notification
- Replacement appointment
- System access updates
- Documentation updates
Transition Process:
- Knowledge transfer
- Training completion
- Authority reassignment
- Compliance continuity

Employment Flexibility: Can You Take Additional Employment or Freelance Work?

Employment Guidelines:

Primary Employment:
- Core job requirements
- Working hour limits
- Salary compliance
- Role restrictions
Supplementary Work:
- Permission requirements
- Time limitations
- Income reporting
- Compliance considerations

How Davenport Solicitors Can Help You with Self-Sponsorship

At Davenport Solicitors, we provide comprehensive support throughout your self-sponsorship journey, ensuring compliance and optimizing success probability.

Expert Support Services

Initial Assessment and Planning
- Detailed eligibility review
- Business plan analysis
- Financial assessment
- Strategy development
Application Process Support
- Document preparation
- Application compilation
- Submission management
- Progress tracking
Compliance and Maintenance
- System implementation
- Staff training programmes
- Audit preparation
- Ongoing advisory services

Employment Flexibility: Can You Take Additional Employment or Freelance Work?

Understanding employment restrictions and possibilities under self-sponsorship is crucial for maintaining compliance while maximizing professional opportunities.

Primary Employment Requirements

Your main sponsored role must remain the primary focus:

Core Requirements
- Minimum weekly hours
- Salary thresholds
- Role specifications
- Location requirements
Supplementary Work Considerations
- Additional hours limitations
- Secondary employment rules
- Income reporting requirements
- Compliance obligations

Trading Requirements: Actively or Genuinely Intending to Trade in the UK

Demonstrating genuine trading activity or credible trading intentions forms a crucial part of the self-sponsorship application process.

Active Trading Evidence

Businesses must provide comprehensive proof of operations:

Financial Activities
- Bank statements
- Transaction records
- Financial projections
- Revenue documentation
Business Operations
- Client contracts
- Service agreements
- Delivery records
- Performance metrics

Future Trading Plans

For businesses yet to commence operations:

Market Entry Strategy
- Market analysis
- Competition assessment
- Target customer identification
- Growth projections
Operational Planning
- Resource allocation
- Infrastructure setup
- Staff recruitment
- Supply chain management

Compliance Considerations for Self-Sponsorship

Maintaining compliance requires systematic approaches and regular monitoring across multiple areas.

Compliance Areas:

Record Keeping:
- Personnel files
- Attendance records
- Salary documentation
- Right to work evidence
Reporting Requirements:
- Changes in circumstances
- Significant events
- Employee updates
- Company modifications

How Davenport Solicitors Can Help You with Self-Sponsorship

As specialist employment law and business immigration solicitors, Davenport Solicitors offers unique expertise in managing both the immigration requirements and employment law obligations of self-sponsorship. Our dual specialisation ensures your business not only achieves successful sponsorship but also maintains full compliance with UK employment legislation.

Comprehensive Legal Support

1. Pre-Application Strategic Planning

Our employment and immigration lawyers work together to:

Assess business structure compatibility with UK employment laws
Review proposed employment terms against both immigration and employment requirements
Structure roles to meet both Skilled Worker criteria and employment legislation
Develop compliant employment contracts that satisfy Home Office requirements
Ensure proper worker classification and employment status

2. Sponsorship Licence Application

Our integrated approach covers:

Preparation of licence application incorporating employment law compliance
Development of HR systems meeting both sponsorship and employment law requirements
Creation of compliant policies and procedures
Implementation of right to work checks aligned with employment legislation
Establishment of proper grievance and disciplinary procedures

3. Ongoing Compliance Management

We provide continuous support across:

Immigration Compliance:

Sponsor licence maintenance
Certificate of Sponsorship management
Visa application support
Home Office audit preparation
Changes in circumstances reporting

Employment Law Compliance:

Employment contract updates
Working time regulations
Minimum wage compliance
Holiday and sick leave entitlements
Performance management procedures

4. Risk Management and Prevention

Our dual expertise allows us to:

Identify potential conflicts between immigration and employment requirements
Prevent sponsorship issues arising from employment disputes
Manage workplace relations while maintaining sponsorship compliance
Handle employee grievances without compromising sponsor duties
Navigate redundancy and termination processes safely

5. Documentation and Record-Keeping

We establish systems for:

Integrated personnel files meeting both areas of law
Compliant absence monitoring and reporting
Performance review documentation
Working hours tracking
Salary and benefits records

6. Training and Development

Our specialists provide:

Combined immigration and employment law training for HR teams
Authorising Officer guidance on dual compliance
Updates on legislative changes affecting both areas
Best practice workshops
Compliance audit training

Crisis Management Support

Our team offers immediate assistance with:

Home Office compliance visits
Employment tribunal matters
Sponsor licence suspensions
Employee disputes affecting sponsorship
Urgent changes in business circumstances

Strategic Business Growth Support

We help plan for:

Business expansion and restructuring
Additional sponsor licence applications
Changes in sponsored worker arrangements
New employment structures
International recruitment strategies

Why Choose Davenport Solicitors?

Our unique position as both employment and immigration law specialists enables us to:

Provide comprehensive legal coverage
Identify potential issues before they arise
Offer practical solutions that work for both areas of law
Ensure full compliance across all aspects of self-sponsorship
Support your business’s long-term growth and compliance

Expert Support Throughout Your Journey

Initial Consultation
- Combined employment and immigration assessment
- Business structure evaluation
- Compliance capability review
- Risk assessment
- Strategic planning
Application and Implementation
- Documentation preparation
- Systems development
- Policy creation
- Staff training
- Compliance monitoring setup
Ongoing Support
- Regular compliance reviews
- Legislative update guidance
- Issue resolution
- Strategic advice
- Growth planning

Contact our specialist team today to discuss how our combined expertise in employment law and business immigration can support your self-sponsorship journey.

Frequently Asked Questions About Self-Sponsorship

General Questions

What exactly is a Self-Sponsorship Licence?

A Self-Sponsorship Licence is an immigration arrangement that allows entrepreneurs to establish a UK company and sponsor themselves under the Skilled Worker route. It combines business ownership with immigration permission, enabling you to work in your own business.

How long does the entire process take?

The complete process typically requires 3-4 months: