What Is “Self-Sponsorship”? There is no “Self-sponsorship” route. The term is used for when you set up a UK company that then sponsors you for a work visa. Essentially, you become both the employer (through your company) and the employee. While this might sound straightforward, it involves complex legal requirements that must be met precisely. […]
There is no “Self-sponsorship” route. The term is used for when you set up a UK company that then sponsors you for a work visa. Essentially, you become both the employer (through your company) and the employee. While this might sound straightforward, it involves complex legal requirements that must be met precisely.
The process requires your company to obtain a sponsor licence from the Home Office, then use that licence to sponsor you for a Skilled Worker visa or other appropriate work visa category.
“Self-sponsorship” isn’t suitable for everyone, but it can work well for:
From our experience, several key requirements must be met for successful self-sponsorship:
Your company must be a genuine trading business, not just a vehicle for obtaining a visa. The Home Office examines whether the business is real and sustainable. We have seen applications refused where companies appeared to exist solely for immigration purposes.
The ownership structure matters significantly. While you can own shares in the company, you cannot have complete control if you are also being sponsored as an employee. Family members or business partners often hold shares to demonstrate genuine employment relationships.
Your company must first obtain a sponsor licence, which involves:
The Home Office conducts thorough checks on sponsor licence applications, examining financial records, and operational details.
The role you are sponsored for must:
We often help clients structure roles that meet these requirements whilst reflecting their actual responsibilities as business owners.
Initial company formation
The process typically starts with incorporating a UK company. This requires:
Financial planning
SSignificant financial resources are required:
Through our practice, we have identified several frequent obstacles and how to address them:
The Genuine Employment Test
The Home Office scrutinises whether the employment relationship is real. They look for:
Solution: Create detailed documentation showing your role’s necessary and maintain proper employment records from day one.
Control and ownership issues
Balancing business control with employment relationships creates tension. The Home Office wants to see genuine employment whilst entrepreneurs need sufficient control to run their businesses effectively.
Solution: Carefully structure ownership and management arrangements, often involving trusted family members or business partners as co-owners or directors.
Financial sustainability
Many “self-sponsorship” arrangements fail because the business cannot sustain the required salary payments alongside business development costs.
Solution: Develop realistic financial projections and ensure adequate funding before starting the process.
Compliance obligations
Sponsor licence holders face ongoing compliance requirements that can be challenging for small businesses to manage.
Solution: Implement proper systems from the start and consider professional compliance support.
Step 1: Company formation and business setup
Establish your UK company with appropriate structure and begin genuine trading activities. This isn’t just paperwork, the business must be real and operating.
Step 2: Sponsor Licence application
Apply for a sponsor licence once the business is established and can demonstrate genuine activities.
Step 3: Visa application
Once the sponsor licence is granted, the company can issue a Certificate of Sponsorship and the individual can apply for a skilled worker visa.
Step 4: Ongoing compliance
The sponsor must maintain sponsor licence compliance through proper record-keeping, reporting changes, and meeting all Home Office requirements.
“Self-sponsorship” doesn’t work for everyone. It’s unsuitable if you:
Alternative routes to consider
If “self-sponsorship” isn’t suitable, you may wish to consider alternative routes such as:
Legal risks and compliance
“Self-sponsorship” arrangements must comply with both immigration and company law. Common legal risks include:
The “Self-sponsorship” route is complex, requiring expertise in immigration law, company law, and business planning. DIY approaches often fail due to technical errors or misunderstanding requirements.
Professional advice is essential for:
At Davenport Solicitors, we provide comprehensive support, from initial structuring through ongoing compliance support. Our approach combines legal expertise with practical business understanding.
“Self-sponsorship” can be an attractive route to UK entrepreneurship for those who meet the requirements and understand the obligations. However, it requires significant commitment, proper planning, and adequate resources.
Key questions to consider:
“Self-sponsorship” offers genuine opportunities for entrepreneurs to establish UK businesses whilst obtaining necessary visa sponsorship. However, success requires careful planning, proper legal structures, and ongoing compliance with complex requirements.
The process isn’t suitable for everyone, but for those who meet the requirements and approach it properly, self-sponsorship can provide a pathway to achieving business goals in the UK.
If you’re considering self-sponsorship, seek professional advice early in the process. Proper planning and expert guidance significantly increase your chances of success whilst avoiding costly mistakes.
At Davenport Solicitors, we’re experienced in helping entrepreneurs achieve their UK business ambitions through properly structured self-sponsorship arrangements.
Disclaimer
The material contained on this website contains general information only and does not constitute legal or other professional advice and should not be relied upon as such. While every care has been taken in the preparation of the information on this site, readers are advised to seek specific advice in relation to any decision or course of action.