Scale-Up Sponsor Licence: How Businesses Can Qualify and Apply
The UK’s Scale-Up route was created to support businesses experiencing rapid growth by making it easier to recruit highly skilled workers from abroad. Unlike the Skilled Worker route, where employers must carry sponsorship duties for the full length of the visa, the Scale-Up route limits these obligations to just the first six months. After this period, workers can remain with the same employer or move to another company without the need for further sponsorship.
For employers, this means faster access to global talent with far less administrative burden. For workers, it offers career mobility, flexibility, and a clear route to settlement in the UK after five years.
This article is the first in a three-part series on the Scale-Up route. Here, we explain how businesses can qualify for a Scale-Up sponsor licence, the documents required for the application, and the responsibilities involved in sponsoring workers. In Part 2, we will cover the immigration requirements and fees for workers. In Part 3, we will explore the key advantages of the route, together with the compliance risks that employers need to manage.
Employer Eligibility
Not every company will qualify for a Scale-Up sponsor licence. The Home Office expects applicants to be genuine, financially stable, and actively trading in the UK. Businesses must also have reliable HR and compliance systems to manage their sponsored workers during the first six months of employment.
There are two pathways to recognition as a qualifying Scale-Up sponsor:
- The standard pathway applies to established businesses. To qualify, the company must have achieved at least 20% annual growth in turnover or staff numbers over the past three years, starting with at least ten employees at the beginning of that period. The Home Office verifies these figures automatically using PAYE and VAT data from HMRC.
- The endorsing body pathway is designed for younger companies with fewer than four years of HMRC records. To qualify, the business must be VAT-registered, employ at least ten people, and obtain an endorsement from a Home Office- approved body. Endorsing bodies only grant approval where there is strong evidence of rapid growth potential. This may include securing significant venture capital or equity funding, taking part in government-backed scale-up programmes, investing heavily in research and development, or expanding into international markets.
Applications can be refused where PAYE or VAT records are incomplete, where the minimum staffing levels cannot be shown, or where there are signs of insolvency. A refusal does more than delay recruitment; it can also undermine a company’s ability to obtain other sponsor licences in the future.
Application and Required Documents
Once a business confirms it meets the eligibility criteria, the next step is preparing the application. At the very least, companies must provide their Companies House registration certificate, VAT registration number, and PAYE reference numbers. These allow the Home Office to run automated checks against HMRC and Companies House records to confirm solvency, staffing, and growth.
In many cases, further documents will also be required, including audited annual accounts, recent VAT returns, or up-to-date bank statements to prove active trading and financial stability. Employers must also show they have effective HR and compliance systems. Examples include absence monitoring procedures, detailed payroll and PAYE records, and systems for tracking sponsored workers during the six-month sponsorship period.
For companies applying under the endorsing body pathway, additional documentation is required. Along with the endorsement letter from a Home Office-approved body, businesses must supply evidence of growth potential. This could include confirmation of equity or venture capital funding, proof of participation in official scale-up programmes, significant investment in R&D, or clear evidence of international expansion.
The sponsor licence application is submitted online under the Temporary Worker category, with the Scale-Up route selected. The application fee is £574, payable by all organisations regardless of size. After submission, the Home Office carries out automated checks and may request further information before reaching a decision.
Sponsoring Workers
Once the application is approved, the company can begin sponsoring overseas staff under the Scale-Up route. A sponsor licence is valid for four years and cannot be renewed. Once it expires, the business must apply under another route, such as the Skilled Worker route, if it still wishes to sponsor international hires.
To sponsor a worker, the employer must issue a Certificate of Sponsorship (CoS). This document sets out the details of the role being offered, including the job title, occupation code, responsibilities, salary, and PAYE reference number. A fee of £55 is payable for each CoS assigned.
During the first six months of employment, the business is fully responsible for the worker. Employers must ensure the job is genuine and skilled, confirm that the worker is being paid at or above the required salary threshold, and report any changes in employment circumstances through the Sponsorship Management System. Accurate records must be kept, and absences or compliance issues must be reported promptly.
The Home Office verifies compliance by cross-checking the details in the CoS against HMRC payroll data. If inconsistencies are found, the sponsor may face compliance action, which could include suspension or revocation of the licence.
After the initial six-month period, the employer’s duties come to an end. From that point onwards, the worker’s immigration status is no longer tied to the sponsoring business, though they must continue to meet the conditions of their Scale-Up visa.
Call to Action
This article was Part 1 of our three-part blog series on the Scale-Up route. Here, we looked at the employer side of the process, covering sponsor licence eligibility, the application and required documents, and the responsibilities involved in sponsoring workers.
In Part 2, we will move on to the worker’s perspective. We will break down the immigration requirements for individuals applying under the Scale-Up route, including the points-based system, salary thresholds, English language requirement, and the full breakdown of fees.
At Sterling Law, our immigration lawyers guide businesses through every stage of the sponsor licence process, from eligibility checks to compliance management. If your company is considering applying for a Scale-Up sponsor licence, contact us today for tailored advice and support.
