Your questions answered: the ‘Self-Sponsorship route’ for overseas businesses establishing a UK presence

Thank you to everyone who attended our webinar, ‘The “Self-Sponsorship” route for overseas businesses establishing a UK presence’. We had a fantastic turnout and received a huge number of thoughtful questions (nearly 100!). Time constraints made it impossible to answer all questions live, but our host Paolo Barbato has kindly answered many of the remaining questions here in writing, so you won’t miss out on any insights.

If you missed the webinar, the recording is now available to purchase. Paolo will also be delivering a webinar on making sense of the tradeable points for a Skilled Worker visa on 5 June 2025. You can book your place here.

Thank you to Paolo for his presentation and the time spent answering these questions.

In some cases, we have answered only one question where we received a group of several similar questions.

The ‘Self-Sponsorship route’: what is it, who can apply and other general questions

1. If self-sponsorship is not defined as a ‘route’, where do you make the application?

Self-sponsorship is the combination of a sponsor licence and a skilled worker visa, where the owner, or one of the owners, of the company applying for the sponsor licence is at the same time the identified migrant to be sponsored as a skilled worker. Hence, an initial application for a sponsor licence must be followed by a skilled worker visa application. 

2. I am here as a health and care worker, but my sponsor has no work for me. Can I apply for sponsorship licence to sponsor myself?

I’m afraid not. However, the government has introduced a scheme allowing displaced workers in these circumstances to register with their local care association hub. Employers seeking to hire non-settled carers or senior carers are expected to prioritise candidates registered through this program.

3. Can a new company which has not yet filed tax return use the self-sponsorship route?

Yes. Companies that have been trading for less than 18 months (start-ups) are accepted. Additional evidence may be required.

4. When sponsoring yourself, are there any limitations or preferences regarding roles for applicants? Can they assign themselves to a non-senior position within the company? Would that more likely raise questions about genuineness?

The general rules regarding skilled occupations and codes apply in this case. However, in my view, in a legitimate self-sponsorship application it would be more appropriate for the company owner to be sponsored for a senior or directive position rather than an entry-level role.

5. Can a self-sponsored skilled worker work for his own company as a director as well as in another position, say for example, as a “software engineer”? In such circumstances, which position should be used for Certificate of Sponsorship purposes?

Technically yes, provided it follows the rules of supplementary employment, as per section S8.8 of the sponsor guidance Sponsor a Worker – Part 2.

6. Can someone who is appealing an immigration decision make an application?

If someone transitioned to section 3C leave their immigration status remains valid, so technically they can. However, there would be clear grounds for suspicion that the application is being made solely to gain immigration advantages.

7. How is the following paragraph in the Explanatory Memorandum to the Statement of Changes HC733 (paragraph 5.32) likely to affect the self-sponsorship route practically, if at all?

Changes are also being made to the rules concerning deductions from an applicant’s salary. These changes are being made:

..
– to close an unintended loophole whereby applicants could effectively pay towards their own salary through investing in their sponsor’s business.

This change presupposes a private agreement between the business owner and the skilled worker, or a demand from the business owner. This does not seem to address a situation where the skilled worker and the business owner are the same person. 

8. Could you please clarify the point about family members: can the company sponsor the spouse of the company owner (who is essential for the company’s operation)?

A family member of the company owner, or of somebody else who is working for the sponsor, can usually be sponsored if all requirements are met, the worker is not sponsored in a personal capacity, and the Level 1 user who owns the Certificate of Sponsorship is not a close relative of the migrant worker. This must be reported through a sponsor note nonetheless, but it is not prohibited.

For more details of workers sponsored in a personal capacity please see L1.7 of Sponsorship Guidance Part 1: Apply for a licence.

9. Would you recommend that during the sponsor license stage the Home Office be informed that the migrant worker that has been identified as the owner or shareholder of the company?

Always. The contrary could in my view be equivalent to deception or misrepresentation. 

Requirements and supporting documents

10. Does the business need to show a turnover sufficient to cover the self-employed person’s salary as per the SOC 2020 salary according to the code chosen? If not, isn’t there a risk of refusing the sponsor licence application on genuineness grounds?

This is not clearly stipulated in the guidance; however, unless you have a solid business plan with clear and demonstrable revenue expectations, it would be difficult to maintain that the vacancy is genuine.

11. Does the business need to start trading before applying for a sponsor licence? Is it enough to show everything is set up to “start” trading?

You must have an operating or trading presence in the UK, and companies with 0-18 months of trading presence in the UK are accepted in the guidance. This would appear to indicate that a ‘start-up’ with no operating or trading history could be eligible. However, this could raise questions of genuineness that must be carefully addressed. 

12. What will happen if the approved COS 2020 code changes for the director/owner of the company while he has the initial Tier 2 (general) visa on this category?

It is difficult to say, but in most cases the Home Office will introduce a transitional provision so that this change does not severely affect any visa or licence holder.

13. During my initial meetings with clients interested in the self-sponsorship route, most clients back away when they hear about the investment that would be required (i.e. at least one year’s salary of the skilled worker), along with the Home Office fees and Immigration Health Surcharge. Is this a useful way to initially assess potential client’s eligibility?

Investment is not a formal requirement for obtaining a sponsor licence or a skilled worker visa. However, a business that genuinely needs to sponsor a worker would be expected to have the financial capacity to meet salary obligations.

If the company does not have the necessary funds to meet the salary obligations associated with the role, it may raise questions about whether the vacancy is genuine. 

14. Once companies house has registered the company, can we apply for the sponsorship licence, have the main settled UK director as a minimum shareholder and have 4 or 5 international directors with shareholdings, and then apply for each director for a Defined Certificate of Sponsorship together or separately?

This is technically possible; however, the legitimacy of both the business and the vacancies is likely to come under close scrutiny.

15. In addition to Appendix A documents, would you recommend providing invoices, prospective employees credentials etc with the sponsor licence application?

Any available evidence of the genuineness of the business and the vacancy should be included.

16. While not officially required, do you recommend that your clients include a business plan with their sponsor licence application?

Always. For any type of sponsor licence.

17. In order to get a sponsor license, does the company need a physical trading address? Is it possible to get a sponsor license for a business that only has a virtual address or ‘works from home’?

You do not need to have physical premises, however, if your business involves using no (or little) physical office space, the Home Office will consider the type of work that your sponsored worker will be doing and where the worker will be carrying out their employment duties. This is likely to prompt a pre-licence compliance visit to assess the genuineness of the business and vacancy.

18. We understand the risk of submitting a corporate bank statement with an eBank like Revolut. Have you had any recent experience on this seeming that they were just approved for PRA regulation last summer?

Not really. In my experience, virtual bank accounts have often been viewed with suspicion by the Home Office, not only in the context of a sponsor licence application but also in other applications involving Appendix Finance or Appendix FM-SE. Given the current climate of general scepticism towards self-sponsorship applications and work applications in general, this is simply a precautionary measure.

19. Is a business plan important where the business has been operating for many years and has a track record of trading, transactions and healthy finances?

I always recommend including a business plan with the application. Since the purpose of the consideration process is to assess whether the business is operating or trading in the UK and whether the vacancy is legitimate, a business plan is an ideal tool to assist the Home Office in this effort.

20. Where a client has an overseas business and a prospective UK business will be in the same sector of business, do you think linking those entities would assist the application? Would providing evidence of the overseas business activity also be useful? (e.g. invoices, bank statements)

This appears to be a clear case for a UK Expansion Worker licence. If your client prefers to apply directly for the skilled worker licence, they can do so, and providing evidence of the parent company (if this is the chosen legal structure) would only strengthen the application.

21. How do you make the hierarchy chart with a single person in self-sponsorship?

A single person cannot form the company, as the migrant worker cannot take on the key roles. However, in small companies with two or more individuals, it is still necessary to clarify who is making the decisions and where the migrant worker will be positioned within the hierarchy.

22. Do you think it is risky for legal representatives to submit documents after online submission of sponsor licence?

Definitely, yes. I had an application refused solely on this basis.

I strongly disagree with this view, as anyone with experience in immigration law understands that the moment of submission is when the payment is made and the application is submitted, not when the supporting documents are sent. This logic is consistent across all types of immigration and nationality applications and has been widely supported by the courts. However, it’s a simple correction we can make to eliminate this unnecessary risk. 

Key personnel

23. Do key personnel now have to be employed by the company?

Authorising officer and your primary Level 1 user must be either senior employees or company directors/partners. As per the key contact, this is usually a legal representative.

24. The ‘office holder’ seems to have been taken away for Level 1 under L4.46 in Guidance for Sponsors Part 1: apply for a licence. ILPA are checking with UKVI that this is deliberate. Have you heard anything? It seems that Secretaries (and Trustees of charities) are now NOT allowed to be Level 1 users, which means for self-sponsorship it now needs to be a Director or employee I think.

I believe it is clear in the new guidance that only employees, directors and partners are eligible to be appointed as primary Level 1 user. This is the case for all sponsor licence applications, including those with an element of self-sponsorship.

25. From a practical point of view, in your experience, how have successful applicants appointed their Authorising Officers when applying for Self-Sponsorship? This seems to be quite a crucial point in terms of refusal.

In my experience, more important than the appointment of the Authorising Officer or other key personnel, is addressing the Home Office’s scepticism about the genuineness of the business and the vacancy. To overcome this, it’s crucial to produce strong documentary evidence, such as invoices, contracts, client lists, tax returns, business plans, financial statements, payroll records, and so forth. These documents can certainly assist the Home Office in verifying that the business and the vacancy are genuine.

In addition, I believe it’s important to clearly explain the reasons why the presence of the company owner in the UK is essential for the business, particularly in a post-Covid world where many businesses can be managed remotely.

26. Are immigration advisors able to take on the role of an Authorising Officer?

No. This is not accepted.

27. Can the immigration adviser be appointed as an authorising officer/level 1 user, if given a (non-executive) director role in the company? Would this be feasible?

No. This is not accepted.

28. Is it the case that a legal representative/immigration advisor cannot then be the Authorising Officer or key contact for the company to manage the licence for them? Is there something in the rules about this?

A legal representative can be appointed as the Key Contact and/or additional Level 1 user, but not as the Authorising Officer or primary Level 1 user.

29. Can a prospective skilled worker’s friend act as the director and Authorising Officer of the company without seeking any payment? Would the Home Office have any issues or concerns regarding this?

This would raise clear issues of genuineness.

30. Is it acceptable for the sponsored worker to be sole director and 100% shareholder, with an employee or company secretary acting as Authorising Officer?

This is not prohibited under the applicable rules, but it is subject to close scrutiny, particularly with regard to genuineness.

31. Can you please clarify exactly why the owner/person being sponsored can’t be the Authorising Officer? Assuming another British/settled director is the Level 1 user.

This is an excellent question.

The sponsorship guidance states that the Authorising Officer must be based in the UK but not necessarily settled and does not explicitly forbid a sponsored migrant from acting as the Authorising Officer. However, the Home Office expects the Authorising Officer to be a senior, competent individual based in the UK, responsible for overseeing migrant recruitment and ensuring compliance with sponsor duties. Given these responsibilities, it is generally considered inappropriate for the sponsored individual to assume the Authorising Officer role, as this can present a conflict of interest.

In the context of a ‘self-sponsorship’ application, this becomes, in my view, even more critical, as appointing the intended sponsored migrant as the Authorising Officer may not only be seen as unconventional but could also raise concerns about a conflict of interest, as well as on the genuineness of the business and the vacancy.

32. If you sponsor yourself under the UK Expansion Worker route and you are the Authorising Officer to begin with, if you then change the licence to a skilled worker route, can you remain the Authorising Officer or should you appoint someone else for this role?

This issue is not directly addressed in the guidance. However, under the UK Expansion Worker route, if the Authorising Officer is initially based outside the UK, they must also take on the position of Level 1 user. Under the skilled worker route, it is not possible to assign a Certificate of Sponsorship in your own name. Given the addition of the skilled worker route to an already existing UK Expansion Worker licence, my advice would always be to upgrade the initial provisional licence to an A-rated licence and appoint a settled person as the new Authorising Officer and primary Level 1 user.

Human Resources

33. In your view, are there any issues with companies being appointed as part-time Human Resources employees?

This is more a question of strategy than strict legality. In my view, as long as the appointed key personnel meet the requirements set out in the sponsorship guidance, and their involvement in the business is both genuine and demonstrable, an arrangement with such a company should be acceptable. However, the Home Office appears to have taken a rather sceptical approach toward these arrangements, often questioning their genuineness. Unfortunately, “genuineness” has become a broad and somewhat subjective standard that can be used to refuse applications, sometimes on questionable grounds.

In all recent cases we’ve dealt with, the Home Office has carried out a pre-licence audit and has heavily scrutinised the role of the appointed HR professional, questioning their involvement, and the business in general, as not genuine.

34. Can a Human Resources system be maintained through Excel sheets?

Every company will have HR systems tailored to their operations and in compliance with the law. However, in self-sponsorship cases, I always recommend providing evidence of highly formalised arrangements. This includes clear documentation of HR systems, accounting practices, and other operational structures. This type of evidence helps to establish the genuineness and legitimacy of the business.

35. Please could you provide examples of what the Home Office expects to see in terms of systems and mechanisms for maintaining Human Resources compliance, absence trackers and right-to-work checks.

I am afraid that I cannot speak for the Home Office, but I can share some recent experiences. In all cases where there has been an element of self-sponsorship, the Home Office has carried out a pre-licence compliance visit where at least all the following have been checked in relation to HR systems:

1. Whether the business has systems in place to maintain accurate and up-to-date records of all employees. This includes a pre-determined system to keep track of employment details such as start dates, job titles, pay rates, and working hours.
2. Right to work checks before start dates have been requested even in the case of company non-executive directors who are not usually classified as ‘employees’ and who in many cases don’t even live in the UK.
3. Right to work checks schedule after first check (follow-up checks)
4. Pension enrolment or opt-out forms
5. Minimum wage
6. Allowances and similar payments
7. Records of extended absences if applicable
8. Maternity and paternity leave
9. SMS reporting where required
10. ‘Mileage’ payments

36. Does a British employee need an employer check?

Yes. This is not exclusive to sponsor licence holders but applicable to all companies operating in the UK. This right to work check is not an online check but a manual check, as British citizens don’t have an immigration status in the UK. 

Audits and interviews

37. I’ve learned that Home Office may invite the owner and director of the company applying for the sponsor licence for interview. Is that correct?

When self-sponsorship is involved, the application is highly likely to be subject to a pre-licence compliance audit, during which, the authorising officer will almost invariably be interviewed. 

38. Have you recently applied for a self-sponsorship licence without receiving an audit request, whether face-to-face or online?

No. It appears to be a matter of policy to conduct a pre-licence audit when there are elements of self-sponsorship involved.

Genuineness and refusals

39. I’ve noticed that sponsorship applications are often refused due to the genuineness criteria. How can this be overcome? Would posting a job advertisement help if the skilled worker is also the director and owner?

The challenge with the ‘genuineness’ criterion is that, without a clear definition of what is expected from a company to demonstrate a ‘genuine’ business or vacancy, it is very difficult to predict what evidence will be considered sufficient, particularly in self-sponsorship cases.

My advice to clients is to maintain clear and organised records, including transaction histories, client lists, contracts, tax declarations, and evidence of ongoing or future business activity. There’s no official checklist or formula like in many other immigration routes, but this kind of evidence often helps demonstrate that the business is genuine and actively trading, or ready to trade. 

40. If the main applicant (i.e. the potential skilled worker) directly invests into the company bank account, would the Home Office raise concerns about genuineness?

In the context of self-sponsorship, this should not impact the application, as it is clear that the identified migrant worker is the owner of the company. 

41. What is your opinion on challenging refusals of sponsor licence applications under this framework?

If the business and the vacancy are clearly genuine, Judicial Review is an option to challenge unreasonable decisions. For instance, where an application is refused solely on the grounds of self-sponsorship, despite the business being clearly legitimate and the presence of the sponsored worker in the UK being evidently essential to its operations.