By Thomas Hill – Immigration Barrister
The method by which a enterprise obtains a licence from the House Workplace to sponsor migrant staff is, at its core, the identical for all organisations – whether or not the enterprise is massive and well-established, or is a brand new firm that’s not but buying and selling and doesn’t have any staff.
In follow, nevertheless, there are a selection of issues that new companies should all the time keep in mind. New companies shouldn’t be deterred from making Sponsor Licence functions, however ought to take further care in relation to the issues beneath, to make sure that they don’t show to be obstacles in an utility.
Acquiring a Sponsor Licence: Concerns for New Companies
Is Your New Enterprise a Real Operation?
To grant a Sponsor Licence, the House Workplace have to be happy {that a} enterprise is “a genuine organisation operating lawfully in the UK”. It is very important observe that this doesn’t essentially require that the enterprise has commenced buying and selling. Our barristers have efficiently assisted many small companies in acquiring Sponsor Licences even when they don’t seem to be but buying and selling or producing income – this may be for a wide range of causes, together with conditions the place a enterprise can not feasibly start buying and selling till the sponsored migrant has arrived within the UK, or companies creating a product that’s but to go to market.
Nevertheless, in these types of conditions, a enterprise have to be cautious and thorough in the way it goes about demonstrating that it’s “a genuine organisation operating lawfully in the UK”. In principle, a enterprise proves that this requirement is met by offering documentation listed in Appendix A of the House Workplace’s Sponsor Licence steerage. In actuality although, this will not be sufficient. The House Workplace decision-makers contemplating the applying will have to be happy that the enterprise is genuinely able to providing expert employment, genuinely able to paying the sponsored migrants’ salaries, and isn’t merely a sham set as much as facilitate migration to the UK.
For that motive, we all the time suggest that new companies go nicely past the documentation listed in Appendix A in displaying genuineness. Offering an in depth marketing strategy is commonly a useful begin – we regularly have detailed discussions with our shoppers as to what additional proof is smart to supply.
Is Your New Enterprise Able to Complying With Its Sponsor Duties?
Companies should not solely be real operations to carry a Sponsor Licence, however should even be able to carrying the duties required of them as sponsors. The House Workplace’s guidance states, “we judge this by looking at your current human resources and recruitment practices to make sure you will be able to fulfil your sponsor duties, and we may conduct a compliance check on you before your licence is granted”.
Bigger organisations might have a longtime HR division, and could possibly proof a historical past of constant recruitment practices and good record-keeping. For newer and smaller companies, proving their functionality of complying with sponsor duties could also be tougher. Certainly, for corporations that don’t anticipate having quite a lot of staff, they could not count on to ever want specialist HR professionals or software program, and their recruitment processes may be advert hoc and considerably casual.
For a small or new enterprise, complying with sponsor duties needn’t be particularly onerous or daunting. Nevertheless, it’s completely important that the duties are correctly understood and complied with – and that the corporate can display that it has appropriate programs in place on the time of utility. When instructed to arrange Sponsor Licence applications, we offer shoppers with a tailor-made HR coverage and process package deal to help them perceive the sponsor duties, implement programs which can be compliant, and make it possible for the corporate’s key personnel are well-equipped to deal with any compliance check.
Does Your New Enterprise Have a Company Financial institution Account?
While for a lot of companies, there may be some selection as to which paperwork from Appendix A they supply in help of their Sponsor Licence utility, for start-ups, it’s necessary to supply proof of getting a present, company checking account. A start-up, for this function, is outlined as an entity that has been working or buying and selling within the UK for lower than 18 months on the date of the Sponsor Licence utility.
A enterprise checking account have to be with a financial institution that’s regulated by the Monetary Conduct Authority and the Prudential Regulation Authority within the UK. It’s value noting that this excludes many e-money establishments, akin to Revolut (which holds a banking licence for the European Financial Space however not for the UK).
We can not advise on the method of opening a enterprise checking account, however our expertise from shoppers is that it could actually typically be topic to delays, notably the place some or all the firm’s administrators are primarily based exterior the UK. For that reason, it’s often wise to make opening an account an early precedence if the corporate doesn’t have one already.
Does Your New Enterprise Have Personnel Who Can Handle the Licence?
When a Sponsor Licence utility is submitted, a enterprise must nominate members of its workers as “Key Personnel” to hold out explicit roles in relation to the licence. The entire Key Personnel should meet a lot of particular necessities – for instance, every have to be a paid member of your workers or engaged by you as an ‘office holder’ (topic to numerous exceptions); every have to be primarily based within the UK (except on the UK Growth Employee route); and so they should not have any unspent felony convictions. There are further necessities particular to the person roles – for instance, the Authorising Officer have to be “the most senior person in your organisation responsible for the recruitment of all migrant workers and ensuring that you meet all of your sponsor duties”, while the primary Stage 1 Consumer have to be an worker, accomplice, or director.
In a brand new or small enterprise, the place in some instances there will not be any staff aside from the sponsored migrant (for instance, in a “self-sponsorship” scenario), there will not be an apparent individual to nominate to every of the Key Personnel roles. Nevertheless, it’s an absolute prerequisite for a profitable utility that you just determine appropriate people to fill these roles. If needed, it’s possible you’ll want to think about whether or not to convey further members of workers into the enterprise, whether or not as payrolled staff, or in workplace holder positions akin to companions or administrators.
Contact our Immigration Barristers
Acquiring a Sponsor Licence as a brand new enterprise is completely potential, and firms shouldn’t be deterred from making use of just because they could not but be producing income or using different workers members. Nevertheless, in such circumstances, functions typically require somewhat extra care to display to the House Workplace that enterprise ought to be granted a licence. For skilled recommendation and help in relation to a Sponsor Licence utility, contact our Immigration Barristers on 0203 617 9173 or full our enquiry kind beneath.
