Self-Sponsorship Skilled Worker Visa

Does the UK have a Self Sponsorship Visa?

Contrary to online marketing claims and announcements made by some immigration lawyers, no "self-sponsorship visa" is officially available in the UK. However, there are circumstances where you can move to the UK to work for a company that you own.

A "self-sponsorship visa" actually means a UK immigration route or strategy that enables non-UK citizens to come to the UK by owning a business through which they can sponsor their work visa. This means you are both the employer and the sponsored worker under the Skilled Worker visa route.

To prevent abuse of this route, the Home Office will scrutinise the sponsorship of the Founder or Owner to assess if the job offered meets the Genuine Vacancy Test. Therefore, presenting a genuine and strong business case in your application is crucial.

Bringing Family Members

Your partner can join you in the UK if they are your spouse, civil partner, or unmarried partner. You must be in a relationship for at least 2 years for unmarried partners.

Children under 18 years old can also join you as dependents. Individuals who are 18 years old or older may be included in your application if they hold dependent status.

Visa Pathway to Permanent Settlement

One of the advantages of the self-sponsorship visa route is its pathway to permanent settlement in the UK. After five years of continuous residence, self-sponsored visa holders can apply for Indefinite Leave to Remain (ILR). Achieving ILR status provides the freedom to live in the UK indefinitely, with the opportunity to apply for British citizenship immediately or after an additional 12 months.

To qualify for ILR through the self-sponsorship visa route, applicants must meet specific criteria under the UK's Immigration Rules, including:

• Continuous Residence: Applicants must demonstrate five years of lawful and continuous residence in the UK.
• Sponsorship and Salary Threshold: The role held by the self-sponsored individual must meet the necessary sponsorship requirements, including the relevant salary threshold.
• Knowledge of Life in the UK: Applicants must pass the Life in the UK test and meet English language requirements.

After obtaining ILR, you will generally be eligible to apply for British citizenship.

How Does Self Sponsorship Work

Self-sponsorship requires having a UK-registered company, obtaining a Sponsor Licence, and then assigning a Certificate of Sponsorship (CoS) to yourself as the business owner. You can then apply for a Skilled Worker visa under this sponsorship.

This route is ideal for entrepreneurs, business owners, and skilled workers who want to start or expand their businesses in the UK.

Does Self-Sponsorship Require Establishing a New Business?

If you already own or partially own a business in the UK that is approved to sponsor workers under the Skilled Worker route—and you meet all the visa requirements—this could be an ideal path to self-sponsorship.

If you do not currently own a business, there are two potential options to explore:

• Acquire an existing UK-based company
• Establish a new UK-based company.

1. UK-Based Business Formation

Establishing a new business involves registering the company with Companies House, selecting an appropriate business structure (e.g., a limited company), and ensuring compliance with all legal and tax obligations. For example, forming a Limited Company through Companies House can be completed online for a fee of £50.

While a company must be established, the business is not required to trade or generate revenue actively in the UK. Nevertheless, basic documentation would be required to show that the business is genuine and has growth needs to justify your sponsorship.

Registering a UK Company from Abroad

For non-UK residents, registering a UK company can be completed entirely online without needing to visit the UK in person. You can handle this process yourself, or professional company formation agents can manage it for you.

The first step in forming and registering a company is selecting the appropriate business structure. In the UK, overseas businesses typically choose from three main company structures:

Limited Company (LTD)

A limited company is a separate legal entity from its owner and other business entities abroad, protecting personal assets from company debts. It can be:

• Limited by Shares: For-profit, with shareholders who retain profits after taxes.
• Limited by Guarantee: Not-for-profit, with guarantors instead of shareholders, reinvesting profits.

Limited companies can be:

• Private (Ltd): Registered at Companies House, requiring at least one director and one shareholder. The company is not publicly traded, and the liability of shareholders is limited to their ownership percentage.
• Public (PLC): Publicly traded with stricter reporting requirements and a minimum public share value of £50,000.

Limited Liability Partnership (LLP)

An LLP involves two or more partners sharing profits and dividends. It is a separate legal entity offering personal liability protection for debts and losses. Each partner is responsible for their tax returns.

Registered UK Establishment

An overseas company that meets UK registration requirements. It is not a separate legal entity from the foreign business and shares the same directors and shareholders.

Requirements to Register a Company in the UK

1. Registered Address: Your business needs a valid UK address (not a PO box). This could be your home address or a virtual address service.
2. Memorandum and Articles of Association: These documents are mandatory for all UK businesses.
3. Company Director: At least one director is required. They don’t need to reside in the UK, but a local director can simplify processes like opening a bank account. You’ll need to provide their full name, nationality, date of birth, and residential address to the British government. Suppose a non-UK resident director cannot perform their duties, such as attending board meetings or signing official documents in person. In that case, they can appoint a UK-based representative to act on their behalf.

How to Register a Foreign Company in the UK

Register Company Name

• Use the Companies House name checker to ensure availability.
• Your business name must be unique and comply with UK rules (e.g., avoiding offensive or regulated terms).
• Consider trademarking your name to prevent others from using it during registration. This is a separate legal process which would typically be done by hiring an Intellectual Property lawyer.

Set Up a Business Address

• The address must be a physical UK location to receive official documents.
• The address will be publicly available on the Companies House database.
• Prepare Company Documents:
• Complete and sign the Memorandum of Association (MOA) and Articles of Association (AOA) with your director(s) and shareholder(s).

Obtain a SIC Code

• Get your Standard Industrial Classification (SIC) code, which categorises your business for statistical purposes.
• You must provide this code when registering with Companies House.

Open a UK business bank account

Non-UK residents can open a business bank account in the UK, but requirements and procedures vary by bank and individual circumstances. The process can take anywhere from a few days to several months.

Some banks may require a UK address, tax residency, or an in-person visit, while others offer online account setup. Researching different banks and preparing required documents in advance is recommended to streamline the process.

• Required documents include identification (e.g., passport or ID card), proof of business address, Companies House registration number, and estimated turnover.
• Some banks may request a business plan or financial projections, especially if applying for credit.

Tax Registration Steps

Corporation Tax

• Register with HMRC within three months of setting up in the UK.
• You can create a Government Gateway account using your Unique Taxpayer Reference (UTR), which you received from HMRC after registration.
• Add corporation tax to your account and provide your company’s registration number and start date.

PAYE (Pay As You Earn)

• Register as an employer if you plan to hire staff or employ yourself.
• Add PAYE for employers to your Government Gateway account to manage payroll, salaries, national insurance, and income tax.

VAT (Value Added Tax)

• Register for VAT if your annual turnover exceeds £85,000.
• You must complete VAT registration within 30 days of knowing you'll surpass this threshold.

2. Apply for a Worker Sponsor Licence

Once your UK company is established, you must obtain a Sponsor Licence. The Home Office offers two types of Sponsor Licences:

• ‘ Worker ’ Sponsor Licence: This licence is for skilled or long-term employment, including the Skilled Worker visa and other categories like the Senior or Specialist Worker Visa, which falls under the Global Business Mobility route.
• ‘ Temporary Worker ’ Sponsor Licence: For specific types of short-term employment.

The Worker Sponsor Licence is the most suitable option for most entrepreneurs pursuing self-sponsorship, as it aligns with the Skilled Worker visa requirements.

QC Immigration provides a detailed overview of the requirements and how to apply for a Sponsor Licence. To secure a Sponsor Licence, the Home Office must be satisfied that your UK business meets the following criteria:

• Genuine & Lawfully Operating Business: Must be a bona fide UK entity (e.g., PLC, LTD, LLP, Sole Trader) with a physical presence, adhering to sponsor duties and preventing illegal working.
• Good Compliance History: No unspent criminal convictions for immigration offences, fraud, or money laundering, and no Sponsor Licence revocation in the past 12 months.
• Monitoring & Management Systems: Effective HR and recruitment processes to manage sponsored workers, including compliance with the Genuine Vacancy Test.
• Suitability Requirements: Demonstrate that the business and key personnel are trustworthy and have no serious criminal history.
• Genuine Business Need: Provide evidence of a genuine vacancy that meets the skill and salary requirements for a sponsored role.

Creating a Business Case for a Sponsor Licence Application

While including a business plan is not mandatory for the Sponsor Licence application, it is essential to provide a relevant business case to justify the need for sponsorship. It should support your application by demonstrating your business's viability and the legitimacy of your need to sponsor migrant workers. It should clearly outline your business objectives, financial ability and plans for job creation, providing a solid foundation for your application.

If a business plan would benefit your application, such as for a Sponsor Licence under the Expansion Worker Visa route, these are Key Elements to Include in Your Business Plan:

• Business Overview: Provide a detailed description of your business, including its goals, operational strategy, and how it meets the sponsor licence requirements. Highlight your business’s structure and the roles that require sponsorship.
• Financial Position and Projections: Present realistic and evidence-based financial forecasts. This should include:
  • A summary of your business’s financial position over the past 12 months.
  • Reasons for expanding into the UK market.
  • Proposed investment in the UK and projected operating costs for at least the first 12 months of UK operations.
• Market Research and UK Expansion Rationale: Include thorough market research that demonstrates the viability of expanding to the UK. If not incorporated directly into the business plan, provide a separate document detailing your market analysis and the strategic rationale for choosing the UK as a growth market.
• Job Creation and Sponsorship Needs: Explain how your business will contribute to the UK economy by creating genuine job opportunities. Justify why the resident labour market cannot fill these roles and require sponsorship under the Expansion Worker visa or Skilled Worker route.

Appoint Key Personnel

Applying for a sponsor licence requires the right key personnel to ensure Sponsor Licence Compliance. The mandatory key personnel roles include the Authorising Officer, Key Contact, and Level 1 User. These roles can be filled by the same person or by different individuals within your business. However, they must be based in the UK for their appointment and must be paid staff members or office holders within your organisation.

Authorising Officer

The Authorising Officer must be the most senior person in your business, overseeing the recruitment and management of migrant workers. This role carries significant accountability, including ensuring that your organisation meets its sponsorship duties and obligations outlined by UKVI. The AO is pivotal in maintaining compliance, from record-keeping and reporting responsibilities to preventing illegal working practices. Regular reviews and updates to the roles and ensuring all personnel comply with UKVI requirements are essential to maintaining your sponsor licence.

Key Contact

The Key Contact acts as the primary liaison with UKVI. They handle all communications and coordinate responses to UKVI requests, ensuring that information provided to the Home Office is accurate and timely. The KC role is crucial for maintaining a clear and effective line of communication between your business and UKVI. As your Legal Representative, we are well-placed to undertake this role to ensure all Home Office communications are attended to promptly and effectively.

Level 1 User

A Level 1 User is responsible for accessing and managing the Sponsor Management System (SMS) daily. This includes assigning Certificates of Sponsorship (CoS) to prospective employees, managing sponsored worker records, and overseeing compliance-related activities. The Level 1 User is essential for the practical administration of the sponsorship licence and must be a paid director, employee or office holder of the UK entity at the date of application. As your Legal Representative, we may also undertake the additional Level 1 User role to save your time with the SMS administration and ensure compliance with the immigration rules.

3. Assign a Certificate of Sponsorship (CoS)

Once your company’s sponsor licence application is approved, the next step is to apply for and assign a Defined Certificate of Sponsorship (dCoS) or Undefined Certificate of Sponsorship (UCoS). The CoS is a digital document that acts as an official link between your employment within your business and will be issued to you as part of the Skilled Worker visa application.

Before assigning a Cos for the self-sponsorship route, there must be a genuine vacancy within your company, and you must possess the relevant skills, qualifications, or experience to fill the role. Failure to meet this genuineness requirement will result in the Home Office rejecting your application.

Your UK company must also offer a job that meets the skill and salary requirements of the skilled worker route. The role should typically be at RQF Level 3 or above, with an eligible occupation code listed in Appendix Skilled Occupations or Appendix Immigration Salary List.

Additionally, your salary must meet the general threshold (usually at least £38,700 per year) or align with the specific 'going rate' for your occupation, with some flexibility for a reduced salary rate if you score 'tradable points'.

Each CoS is assigned a unique reference number that is needed when applying for the Skilled Worker visa. It must be issued no more than three months before the date of your visa application, and it must include:

• Your name, job title, and salary details.
• A start date for the position is no later than 3 months after your visa application.
• Confirmation that the CoS has not been previously used in an approved or refused application and has not been withdrawn or cancelled by the Home Office.

4. Apply for a Self-Sponsored Skilled Worker visa

Once you have obtained a Certificate of Sponsorship (CoS), you must apply for a self-sponsored Skilled Worker visa. This requires meeting the broader eligibility criteria and providing the necessary supporting documentation.

Eligibility Requirements

• Age: You must be 18 years or older.
• Job Offer: You need a confirmed offer for a qualifying skilled role in the UK.
• Criminal Record Certificate: Provide this if required for your occupation.
• Skills and Experience: Demonstrate you have the appropriate skills, qualifications, and experience for the role.
• Salary Threshold: Your job must meet the general salary threshold (typically at least £38,700) and the 'going rate' for the relevant SOC code.
• Financial Requirements: Have at least £1,270 in savings to support yourself upon arrival in the UK or have your UK sponsor certify maintenance of this amount on your CoS.
• English Language Proficiency: Unless exempt, meet the required English language standard (CEFR Level B1 or higher).
• Tuberculosis (TB) Certificate: Provide a valid TB certificate for your country of residence if needed.

Fees:

• Skilled Worker Visa Application Fee:
  • From Outside the UK: £719 (3 years) or £1,420 (5 years) per person.
  • From Within the UK: £827 (3 years) or £1,636 (5 years) per person.
• Immigration Health Surcharge (IHS): £1,035 per applicant per year, providing access to the UK’s National Health Service (NHS).
• Certificate of Sponsorship (CoS) Fee: £239 per sponsored worker, payable by the sponsor. Note that the Home Office has announced a potential increase of this fee.

Processing Time:

After you have paid the application fees and submitted all the required supporting documents, a decision is typically made within 8 weeks. However, this time frame may be extended if UK Visas and Immigration (UKVI) needs to carry out a compliance visit or audit to verify your business's reliability and adherence to sponsorship duties.

After Visa Approval

Once the Skilled Worker visa is approved, you will be authorised to work in the sponsored role. You may also take on supplementary employment or participate in voluntary work, provided your primary sponsored job responsibilities continue to be met.

You can study in the UK, subject to certain conditions, including providing an Academic Technology Approval Scheme (ATAS) certificate if required. Access to public funds is not allowed under this visa category. The Skilled Worker visa can be extended if you continue with the same employer or switch to a new employer within the same or different occupation code. The extension process requires submitting an online application before your current visa expires.

This visa allows for multiple extensions, so you can continue working in the UK without any breaks. To extend your visa, you must complete the application online before it expires. Dependents can apply to extend their visas either at the same time as you or at any point before their visas expire.

Alternatives UK Visa Routes to Self Sponsorship

While self-sponsorship can be a viable route for entrepreneurs, it may not suit everyone. There are alternative visa options for those looking to establish a business presence in the UK:

Innovator Founder Visa:

The Innovator Founder visa is designed for Founders or Co-founders who want to set up or run a business in the UK. This visa requires an innovative, viable, and scalable business idea endorsed by an approved endorsing body. It is ideal for those with fresh, forward-thinking business concepts contributing to the UK market.

UK Expansion Worker Visa:

Part of the Global Business Mobility route, this visa is suitable for overseas businesses planning to establish a UK branch or subsidiary where a Sponsor Licence is also needed. It allows businesses to send a senior employee to oversee the expansion, provided the parent company remains active and trading outside the UK. Therefore, this route may sometimes serve as a secondary 'self-sponsorship' option for founders or owners of a business being transferred to establish the UK office.

Global Talent Visa:

The Global Talent visa is an attractive route for exceptional individuals who have demonstrated outstanding skills, talent, and leadership in your fields. You have the freedom to be employed or self-employed with any company, without requiring sponsorship.

Immigration Lawyer For Self Sponsorship

The Self-Sponsorship route offers a unique pathway for entrepreneurs looking to move to the UK and run their own businesses. While there is no official 'Self Sponsorship visa,' this route enables business owners to set up their own UK company and sponsor themselves for a Skilled Worker visa—provided there is a genuine employment need for their role.

Navigating this process can be complex, with strict requirements for company setup, sponsor licence applications, and compliance with UK immigration rules. Engaging an expert immigration lawyer with experience in the self-sponsorship visa route can significantly streamline the process. A knowledgeable UK immigration lawyer can guide you through each step, helping you avoid pitfalls, prepare robust documentation, and enhance your chances of a successful application.

If you would like to speak to an expert immigration lawyer about your self-sponsorship journey, getting professional advice early can make all the difference in achieving your goal of establishing your business in the UK.