Sponsor licence: A growth essential for scale-ups

Recently, I attended a techUK scale-up event where a panel of CEOs shared candid reflections on their growth journeys. One comment stood out. The CEO of a high-growth technology company said that, looking back, one of the key things she wished the business had done earlier was secure a Skilled Worker sponsor licence before entering its active scale-up phase.

Her point was simple. Growth rarely waits.

For many scale-ups, expansion is rapid and often unpredictable. New client wins, product launches, funding rounds and international expansion can all require immediate access to specialist talent. Yet obtaining a sponsor licence can take several months, particularly where the Home Office conducts a pre-licence compliance audit. If the licence is not already in place, hiring overseas talent becomes impossible at the very moment it is needed most.

Growth can stall without immigration readiness

Scale-up businesses operate in highly competitive, global talent markets. Projects cannot be paused while waiting for immigration permissions. We have seen situations where a key engineer could not start work on a major client deployment, or a portfolio/account manager was unable to relocate in time for a contract launch.

Immigration compliance is often viewed as a minor operational matter, something to address when required. However, when it becomes urgent, it can quickly turn into a structural obstacle to scaling.

There is also a transactional dimension. During investment rounds or acquisitions, immigration compliance forms part of due diligence. The investing or acquiring party will typically review right to work compliance, presence of the sponsor licence, reporting systems and any other immigration past issues. Deficiencies can delay transactions and create reputational risk.

What is a skilled worker sponsor licence

A Skilled Worker sponsor licence allows a UK business to sponsor non-UK nationals under the Skilled Worker visa route. It enables the company to assign Certificates of Sponsorship to eligible employees, who can then apply for permission to work in the UK.

For scale-ups competing internationally for talent, this is infrastructure, not an administrative extra.

There is often a perception that obtaining a sponsor licence is bureaucratic and expensive. While the regulatory framework is detailed and compliance-focused, with the right advice and proper preparation the process is entirely manageable and proportionate to the commercial benefit it delivers.

Core requirements:

• Be a genuine and lawfully operating UK entity.
• Have appropriate HR systems to monitor sponsored workers and meet reporting and record-keeping duties.
• Appoint key personnel to manage the licence, including an Authorising Officer and Level 1 User.
• Be prepared for a potential Home Office pre-licence compliance visit.

Cost and duration:

• The Home Office application fee is currently £574 for small or charitable sponsors and £1,579 for medium or large sponsors.
• Once granted, the licence can be held indefinitely, provided compliance is maintained.
• Employers must also budget for related sponsorship costs such as the Certificate of Sponsorship fee and the Immigration Skills Charge when sponsoring new hires.

For sponsored roles:

• The role must meet the required skill level. The route now operates at degree level, and most technical and specialised roles within the technology sector will meet this skills threshold.
• The salary must meet the applicable threshold. The general minimum salary is currently £41,700 per annum or the occupation’s going rate, whichever is higher. This figure is subject to any permitted reductions or tradeable points applicable to the individual employee, such as new entrant status for recent graduates.

Early workforce planning is therefore essential. Salary benchmarking and role structuring should be aligned with immigration requirements from the outset.

What about the scale-up licence

Given its name, the Scale-up licence and visa route may appear particularly attractive to growing technology businesses. On the face of it, it seems designed specifically for high-growth companies.

In practice, however, uptake has been very limited. The route requires businesses to meet strict growth criteria and navigate an additional layer of evidential and procedural requirements. Many immigration practitioners and companies have found the process overly bureaucratic and disproportionate to the benefits it offers.

A number of lawyers, myself included, have undertaken detailed reviews of why the route has been rarely used in practice, together with suggestions for reform. The structural design of the route, including eligibility mechanics and limited flexibility compared to the Skilled Worker framework, has made it commercially less appealing.

Perhaps the clearest assessment came from the Migration Advisory Committee in its letter to the Home Secretary dated 17 December 2025, accompanying its annual report and salary requirements review. The Committee stated that ‘the government should avoid setting up routes such as the Scale-up visa given its very low uptake, unless there is a clear labour market need.’

For most high-growth technology businesses, the Skilled Worker sponsor licence remains the more practical, predictable and scalable option.

Immigration as a strategic asset

Access to talent remains one of the most significant challenges facing high-growth companies in the UK. In sectors such as AI, software engineering, cyber security and advanced data, the domestic labour market alone is often insufficient. A sponsor licence materially expands the available talent pool and allows businesses to compete globally for the skills they need.

Having a licence in place streamlines the hiring process. It enables companies to move quickly when the right candidate is identified, avoids losing talent due to sponsorship delays and provides certainty at offer stage. In fast-growth environments, that speed and flexibility can be commercially decisive.

From an investment perspective, sponsor licence readiness also signals operational maturity. Investors and acquirers increasingly scrutinise immigration compliance as part of due diligence. A properly managed licence demonstrates governance, scalability and international capability. It is not simply an immigration tool, but a growth asset.

You can find more about how sponsor licences work here.

For more details on sponsor licences, work visa or other immigration questions, please contact Nelli Shevchenko at Sherrards on 020 7478 9010 or email [email protected].

Nelli Shevchenko, Sherrards

Nelli is a Senior Associate at Sherrards and advises businesses of all sizes on UK immigration strategy, with particular experience supporting technology companies, scale-ups and international corporates. She regularly works with founders, investors and HR teams on sponsor licences, Skilled Worker visas and global mobility solutions. Sherrards is a member of techUK and Nelli gives advice on the practical and strategic impact of the UK’s evolving immigration framework.

Website: https://www.sherrards.com
LinkedIn: https://www.linkedin.com/in/nelli-shevchenko
Email: [email protected]