It means how an employer can apply to recruit overseas staff in the UK. It is a permission given to an organization by UK Visas and Immigration to sponsor workers in its business from outside the EU. Employers who do not have a sponsor license will be unable to hire new workers from outside the EU or extend work permits for current employees.
The process will involve several limbs, first is, you must have a legitimate company operating in the UK, you don't have to be operating for a lot number of years, even if you have a new business you can apply. However, there are certain requirements you need to fulfill which is as follows:
1. legitimate running of your business, you need to have a bank account running for that business,
2.you need to have employees liability insurance,
4. a copy of the lease or documents to prove the ownership of the premises,
5. You also need to have tax accounts either audited or unaudited for the last financial year (and obviously, if you are a new business they won't ask for this),
6. and lastly your certificate incorporation of the actual company.
These are the major documents one needs to have before they apply for a sponsor license.
If you have several branches of the company then each branch will have to apply for a separate license or you could also group several branches in a single license.
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