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Self Sponsorship Visa UK: How the Route Works

Jul 26, 2024
9 min read

Updated: Oct 10

For those seeking a better environment for business and living, the UK offers an attractive option. Setting up your own company and working as a skilled professional within it can be a gateway to a new life. This method is known as the self sponsorship visa route. It allows you to come to the UK as a skilled worker for the company you form. Let's explore the key steps and requirements.

Please note: UK immigration rules change often. The Home Office updates the immigration rules, salary levels, fees and English language requirements from time to time. Use this article as a general guide, and always check the current rules on GOV.UK or with a lawyer before you act.

Selfsponsorship Visa Route UK

What is a self sponsorship visa?

There is no separate visa called a self sponsorship visa. The term describes a way of using the Skilled Worker route. You set up a UK business and apply for a sponsor licence for that business. The company then gives you a job offer and issues you a Certificate of Sponsorship. In that sense, you sponsor yourself.

The route is not simple. The Home Office checks that your UK business is genuine and that the job is real. It also checks that you meet the requirements for the visa application. You can read the official rules for the Skilled Worker visa on GOV.UK.

The main steps at a glance

  1. Plan your finances and your business.

  2. Form a UK company and appoint the right people.

  3. Open a business bank account.

  4. Apply for a skilled worker sponsor licence.

  5. Issue yourself a Certificate of Sponsorship.

  6. Make your visa application and bring your family.

  7. Stay compliant with your sponsor duties.

Each step has its own checks. A mistake early on can affect everything that follows.

1. Initial investment and financial planning

Starting this journey requires a well-planned financial strategy. We recommend having at least £40,000 available for a family of three. This amount is intended to cover:

  • Government and related fees: needed for the various applications and registrations.

  • Legal fees: to ensure all processes are legally compliant and smooth.

  • Initial operating expenses: to sustain your business and personal expenses for the first two months.

A solid financial foundation is crucial for a successful start. It lets you manage the first costs without strain. Fees and thresholds change, so check the current figures before you plan your budget.

2. Forming your UK company

Forming your company in the UK involves several critical steps:

  • Choosing a company name: select a unique name for your company and register it with Companies House.

  • Appointing a director and an Authorising Officer: designate a British or Indefinite Leave to Remain (ILR) holder as your director and Authorising Officer. This person will be the main contact with UK authorities.

  • Complying with laws and legal requirements: make sure you comply with all UK legal requirements, including any licences and local rules.

Each step needs careful attention to detail. If you are unsure which company type suits you, read our guide to the types of companies in the UK. You can also read the government's page on setting up a limited company.

3. A genuine business and a business plan

The Home Office wants to see a genuine business. A business plan helps. It should explain what the company does, who its customers are and how it will make money. It should also explain why the role you will fill is needed.

A company that exists only on paper is a risk. Sponsor licence applications can be refused if the business does not appear genuine. The same applies if the vacancy does not appear to be a genuine vacancy. Be ready to show real plans, real contracts or real market research.

4. Setting up a bank account for your UK company

Opening a business bank account is a crucial step. This account will be essential for:

  • Managing finances: handling your business transactions and records.

  • Receiving payments: processing payments from clients and customers.

  • Showing financial stability: showing banks and authorities that your business is legitimate and stable.

A payment service provider account is not enough. A commercial business bank account is needed for full functionality. Banks carry out checks on new companies, so allow time for this.

5. The skilled worker sponsor licence

To sponsor a worker, your company needs a skilled worker sponsor licence. You apply through the Home Office and send supporting documents. You can read the official steps on the page for how to apply for a sponsor licence.

A sponsor must name certain key personnel. These include an Authorising Officer, a key contact and a Level 1 user who works the online sponsor management system. Sponsors must also have systems in place to keep records and meet their reporting duties.

6. The job offer, the going rate and the salary threshold

The job must be a real job at the right skill level. It must be on the list of eligible occupations. It must also meet the salary rules. These include a general salary threshold and the going rate for the job. The going rate is the usual pay for that type of role.

These figures change. Check the current salary threshold and going rate on GOV.UK. Do not rely on an old article, including this one. Your company must be able to afford to pay the salary from genuine business income.

7. The Certificate of Sponsorship

Once your company holds a licence, it can assign a Certificate of Sponsorship to you. This is a record, not a paper certificate. It carries a reference number that you use in your visa application. It must match the details of the job offer.

8. English language requirement

To work effectively in the UK, you must show a set level of English. We have said B1 in the past. The required level can change, so check the current figure before you apply. Meeting this requirement is a vital part of the route.

9. Working as a skilled worker

After you have your sponsor licence and Certificate of Sponsorship, you can start your visa application. As the main applicant, you will work for your own company in a skilled worker role.

You may also be able to work a limited number of hours a week in another job. There are conditions, and the rules can change. The extra job must usually be in the same sector, and it cannot replace your main role. Check what the current rules allow before you take extra work.

10. Family and dependants

One advantage of this route is that you can usually bring your dependants to the UK. This includes:

  • Spouse or partner: they can usually work in most jobs, with some limits. This can add to your financial stability.

  • Children: they can access the UK education system and settle into the community.

Dependants must also meet the requirements, and fees apply for each of them. Check the current rules on dependants before you plan.

11. Ongoing duties as a sponsor

Holding a sponsor licence comes with duties. You must keep records, report certain changes and make sure that the worker, in this case you, is doing the job described. The Home Office can visit your business and check your records.

If you break the rules, the Home Office can suspend or revoke your licence. That can affect your own visa. Good record keeping and regular advice help you stay compliant.

12. Legal assistance and compliance

Throughout the process, it is wise to seek legal assistance. An experienced lawyer can help with:

  • Incorporation: guiding you through setting up your company.

  • Compliance: making sure your business meets all UK legal requirements.

  • Complexities: helping with issues around self sponsorship and ongoing compliance.

Regular consultations during the first five years help you stay compliant and deal with any legal issues. If you plan to start a business in London, our guide on starting a business in London may help.

Business immigration: other routes to consider

Self sponsorship is one form of business immigration. It is not the only one. Other routes exist for founders and investors, such as the Innovator Founder route. Each has its own tests, such as an endorsement from an approved body or a new and original business idea.

The right route depends on your skills, your money and your plans. A lawyer can compare the options with you. Do not choose a route only because it looks the quickest. Choose the one you can meet and keep to.

Company registration: practical points

Company registration is done through Companies House. You will need a registered office address in the UK, at least one director and details of who owns the company. You must also file accounts and a confirmation statement each year.

Keep your company records tidy from day one. The Home Office may ask for them when it reviews your sponsor licence application. Make sure the details match across your company records, your bank account and your visa application.

Using a third party to help you

Many people use a third party to set up the company or to prepare the licence application. This can save time. It also carries risk. You stay responsible for what is sent in your name.

  • Ask who will actually prepare your documents.

  • Check that any adviser is properly regulated. In immigration, advisers must be regulated. Solicitors are regulated by the SRA.

  • Read every document before it is submitted.

  • Keep your own copy of everything.

  • Avoid anyone who promises a guaranteed result.

Who is the Level 1 user?

The Level 1 user is the person who runs the online sponsor management system day to day. That person assigns Certificates of Sponsorship and reports changes. This role must be filled with care. A sole director who is also the worker will need to think about how duties are split and recorded.

The Authorising Officer is the senior person who is responsible for the sponsor's actions. The key contact is the main point of contact with the Home Office. In a small company, one person may hold more than one role. The rules on who can hold which role are set by the Home Office, so check them first.

What the Home Office may ask to see

When you apply for a sponsor licence, you must send documents that show your business is real and active. The exact list depends on the type of organisation. It may include:

  • Proof of company registration.

  • Evidence of the business bank account.

  • Evidence of trading, such as contracts or invoices.

  • Insurance documents, where they are required.

  • Details of the job and how it fits your business plan.

Read the current guidance on GOV.UK for the exact list. Missing documents are a common cause of delay.

Timing and planning

Plan the process in stages. Form the company first. Open the bank account next, as this can take time. Then prepare the sponsor licence application. Only after the licence is granted can your company assign the Certificate of Sponsorship.

Build in time for the Home Office to process each stage. Processing times change. Where possible, allow extra time for questions or requests for more evidence. Avoid booking travel or giving up a lease before you have a decision.

What if the licence is refused?

A refusal can be disappointing. The reasons are usually given. They may include a business that did not appear genuine or missing evidence. In some cases you can reapply after fixing the problem. In others, there is a waiting period. Take advice before you reapply, because a second refusal can make things harder.

A short checklist before you start

  1. Check the current rules on GOV.UK.

  2. Set a realistic budget, including fees and a cushion.

  3. Decide who will be the director and Authorising Officer.

  4. Prepare a business plan that you can defend.

  5. Check your English language level.

  6. Take advice from a regulated lawyer.

Common mistakes to avoid

  • Setting up a company with no real activity.

  • Choosing a job title that does not match the work or the pay.

  • Using a salary that the business cannot afford.

  • Missing deadlines or reporting duties.

  • Relying on out-of-date information.

  • Using an adviser who guarantees an outcome.

Nobody can guarantee the result of an immigration application. Be careful of anyone who does.

13. Long-term prospects of the self sponsorship visa route

This route can offer long-term benefits:

  • Indefinite Leave to Remain (ILR): after working in the UK for five years, you may be eligible to apply for ILR. This would allow you to live and work in the UK without time limits.

  • British citizenship: usually after one year with ILR, you may be able to apply for British citizenship.

These milestones can give stability and security to you and your family. Please note that ILR and citizenship are not automatic rights. They are only rights to apply. There is no guarantee that this route will lead to ILR or British citizenship. The rules on settlement can also change, so check them when you are ready to apply.

Frequently asked questions

Can I really sponsor myself?

In practice, yes, if your UK company holds a sponsor licence and the job and business are genuine. The Home Office looks closely at these cases.

Do I need a UK director?

The approach we describe uses a British or ILR-holding director and Authorising Officer. Check the current licence requirements on GOV.UK.

How long does it take?

It depends on how quickly you set up the company, open the bank account and prepare the licence application. Processing times are set by the Home Office and can change.

Can my family come with me?

Usually yes. Dependants apply as part of the process and must meet the requirements.

Conclusion

The self sponsorship visa route offers a path for skilled professionals who want to move their business and life to the UK. By forming your own company, planning your money and keeping to the rules, you can build a new future in the UK. With the right preparation and legal support, the journey can be rewarding.

If you would like advice on whether this route could work for you, contact Canko Law Firm.

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