The article has been updated with current information. Originally published on 02/14/24.
As a tech franchise in the UK, your expansion strategy may include integrating specialist workers from across the globe. To facilitate this, the UK Home Office requires that tech companies secure a sponsor licence. This certification enables UK franchises to hire skilled workers from overseas under the Skilled Worker and Global Business Mobility visa categories.
This guide provides step-by-step insights into how UK tech franchises can apply for a sponsor licence, ensuring compliance with UK immigration laws while leveraging international talent.
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In the UK, a tech franchise is an exciting avenue for entrepreneurs to enter the digital landscape with the backing of a well-established brand. Think of launching your own business while gaining access to cutting-edge technology, industry expertise, and a structured business framework from the very beginning. This is what tech franchising entails.
Tech franchises encompass a broad spectrum of services, including cybersecurity, software development, AI-driven solutions, digital marketing, and IT support. This industry flourishes due to the increasing dependency on technology across various sectors, presenting vast opportunities for tech enthusiasts. ONE OF THE KEY ADVANTAGES? You won’t be navigating it alone. Instead, you’ll have guidance from a seasoned brand that has already overcome common challenges and established pathways to success.
This model has demonstrated its effectiveness, fostering employment and accelerating economic expansion in the UK. For example, tech franchises alone are seeing a surge in demand, contributing significantly to the economy. In 2023, franchises overall provided jobs for over 710,000 people across more than 48,000 franchise units. For tech entrepreneurs, this model blends business autonomy with the strength of a passionate, technology-driven network.
Moreover, growing a tech franchise isn’t limited to domestic hiring. A solid expansion strategy includes tapping into international talent through a sponsor licence. This crucial permission allows franchises to bring in skilled professionals from across the globe, ensuring that niche roles are filled with the best expertise available. By strategically hiring international talent, franchises can enhance innovation and scalability in competitive markets.
Why should UK franchises be interested in a Sponsor Licence?
In the post-Brexit era, exacerbated by global economic shifts, UK franchises are grappling with an unprecedented talent shortage. This situation, not seen since the 1990s, demands an innovative recruitment strategy. Acquiring a sponsor licence offers franchises the ability to access a worldwide talent reservoir, helping them recruit highly skilled workers. This approach not only mitigates domestic labour shortages but also enriches teams with international expertise. By doing so, franchises maintain a competitive edge while strengthening their resilience in an evolving job market.
The sponsor licence system provides two primary categories for staffing solutions: ‘Workers’ for highly skilled, long-term roles and ‘Temporary workers’ for short-term, specific positions. Most franchises will find the ‘Worker’ licence category particularly beneficial as it aligns with their goals for sustained expansion and workforce stability.
The ‘Worker’ licence consists of several subdivisions tailored to distinct skilled roles that play a key role in a franchise's success:
Skilled Worker: This subdivision is designed for roles that meet the UK government's eligibility criteria, making it an excellent choice for franchises aiming to recruit specialised professionals for long-term employment.
Senior or Specialist Worker Visa (Global Business Mobility): Intended for critical employees within multinational organisations moving to the UK branch, this visa is highly suitable for franchises that are part of global networks or planning international growth.
Expansion Worker Visa: This visa supports businesses in establishing a UK presence, making it particularly relevant for franchises looking to expand into the UK market.
While other subdivisions exist within the 'Worker' licence, these three are the most relevant for franchises that need a versatile and skilled workforce to drive growth.
Choosing the ‘Worker’ licence grants franchisees access to a diverse international talent pool, enabling them to recruit professionals with essential expertise. This approach not only meets immediate hiring demands but also strengthens long-term business objectives, such as rapid scaling and diversifying operations.
In contrast, the ‘Temporary Worker’ licence, although useful for seasonal or short-term needs, may not be ideal for sustained business growth, reinforcing the strategic advantage of the ‘Worker’ licence for franchise longevity and success.
When applying for a Sponsor Licence in the UK, franchises must submit a set of essential documents to support their application.
For franchises specifically, one of the key documents required is the franchise agreement, which must be formally signed by both parties. This document plays a crucial role in demonstrating the legitimacy of the franchise operation to UK Visas and Immigration (UKVI) authorities.
In addition to the franchise agreement, applicants must provide various supporting documents to prove they meet the eligibility requirements. These include, but are not limited to:
Additionally, any document not in English or Welsh must be accompanied by a certified translation. The translation must state that it is a true and accurate representation of the original document, include the date of translation, and provide full translator or translation company details.
For an application to be considered valid, all required documents must be submitted within five working days of the online application. Missing or incorrect mandatory documents can result in a rejection of the application, although the application fee will be refunded in such cases.
These requirements ensure that the UKVI can properly assess a franchise's ability to fulfil its sponsorship duties and comply with immigration regulations.
When applying for a Sponsor Licence in the UK as a franchise, it's vital to assign specific roles within your organisation to effectively handle sponsorship responsibilities. These roles, collectively known as 'Key Personnel', play a fundamental part in ensuring compliance with all sponsorship regulations.
There are four primary roles you must appoint:
Only Level 1 and Level 2 Users can access the SMS. If the Authorising Officer or Key Contact requires such access, they must also be assigned as a Level 1 or Level 2 User.
Key Personnel should typically be direct employees or directors of your franchise. However, in certain cases, outsourced HR professionals or a UK-based representative may be designated.
Key Personnel should primarily reside in the UK and possess a clean legal record, particularly free from serious criminal offences. For overseas franchises expanding into the UK, an overseas Authorising Officer may be considered under specific visa routes, such as the UK Expansion Worker route.
Certain individuals cannot be appointed as Key Personnel, including non-UK-based representatives, specific contractors engaged for short-term projects, and individuals with legal restrictions, such as those declared bankrupt.
When submitting your licence application, you must specify your Authorising Officer, Key Contact, and at least one Level 1 User. Additional Level 1 and Level 2 Users can be added after approval.
It is essential to keep Key Personnel details updated and ensure their continued compliance with UK immigration rules. Failure to notify authorities of personnel changes may impact your franchise’s sponsor licence status.
UK authorities conduct comprehensive background checks on Key Personnel, particularly focusing on criminal and immigration history, both during the application process and when personnel updates are made.
By following these guidelines, your franchise can efficiently manage its sponsorship duties and ensure compliance with UK immigration regulations.
The process for franchises in the UK to apply for a Sponsor Licence consists of several critical steps, ensuring they can legally sponsor foreign workers. This structured procedure allows franchises to efficiently meet their recruitment needs, particularly when specific expertise is lacking in the local market. Here's an overview:
Evaluate Hiring Needs: Franchises must first determine whether their hiring requirements can be met domestically or if they need to source talent internationally, given the UK's skill shortages in certain industries. It is also essential to factor in recent immigration law updates that might impact eligibility. Irish citizens, EU nationals with settled or pre-settled status, and others with the right to work in the UK do not require sponsorship.
Check Job Eligibility: Verify that the roles in question meet the Skilled Worker visa requirements, including appearing on the government's job classification list and satisfying salary and skill level criteria. Seeking expert legal advice can further streamline this step and mitigate risks related to non-compliance.
Prepare Your Systems and Appoint Key Personnel: Franchises should examine and update their HR policies to align with Home Office regulations, a necessary step for managing sponsored workers. This includes assigning designated personnel responsible for overseeing sponsorship duties and ensuring adherence to regulations.
Complete the Online Application: The application process is carried out online, accompanied by the required fee and documentation specific to the franchise’s operational framework. Franchises must also be prepared to provide additional supporting documentation if requested.
Post-Approval Steps: Once granted, the licence remains valid for four years, enabling the franchise to issue certificates of sponsorship to foreign employees, who then apply for their Skilled Worker visas. Regular compliance checks and record-keeping are essential to maintain sponsorship privileges.
After submitting the online application, supporting documents should be sent within five days to avoid processing delays. This structured approach enables franchises to navigate the sponsorship process efficiently, ensuring they can access the international talent required for expansion and success in the UK’s competitive business environment.
Franchises in the UK seeking a sponsor licence for recruiting international professionals must demonstrate the legitimacy of the job offers they extend. This entails presenting comprehensive details to validate the authenticity of the roles for which they seek foreign sponsorship:
Relevance to Occupation Demand: The offered role should belong to an occupation recognized as in high demand in the UK, ideally appearing on the government’s official shortage occupation list. This classification signifies the critical nature of the role to the UK workforce.
Alignment with Franchise Needs: The candidate's qualifications and skills must closely correspond to the franchise’s requirements. It is essential to prove a genuine necessity within the franchise for this expertise, emphasizing the role’s contribution to business operations and growth. Franchises may also be required to demonstrate attempts to recruit locally before seeking international talent.
Candidate’s Suitability for the Role: If a franchise has identified a prospective employee, it should illustrate how their professional background, including work experience and educational credentials, aligns with the job requirements. Providing supporting documentation such as past employment references or certifications can strengthen the case.
Franchises must uphold these standards not only during the sponsor licence application but also throughout the licence’s validity. Home Office compliance officers may conduct inspections to verify ongoing adherence to sponsorship regulations. Any deviations or actions compromising immigration controls may result in licence revocation.
In certain cases, applicants for the UK Skilled Worker visa may face additional scrutiny to verify the job offer's authenticity. This could involve requests for supplementary evidence or an in-person interview covering:
While these verification measures are not standard for all applications, UK Visas and Immigration (UKVI) applies enhanced scrutiny to sectors deemed high-risk. Although UKVI does not explicitly disclose which sectors fall into this category, businesses should prepare accordingly to meet stringent requirements. This underscores the importance of thorough documentation and compliance for franchises throughout the sponsor licence application process.
For franchises planning to recruit internationally through the UK's Sponsor Licence system, multiple financial obligations need to be considered:
Sponsor Licence Fee: This mandatory fee varies according to the franchise's size. Smaller businesses and charities pay £536, while larger franchises incur a £1,476 charge.
Certificate of Sponsorship (CoS) Fee: Every international hire requires a CoS, a digital authorization that outlines the job offer and candidate information. Each CoS carries a fee of £199.
Immigration Skills Charge (ISC): This levy encourages local workforce training. For small entities, the cost is £364 for the first year, followed by £182 per additional six months. Medium and large franchises face a £1,000 first-year charge and £500 per subsequent six-month period.
These expenses are crucial for financial planning and reflect the UK government’s objective of balancing business demands with local workforce development.
Once a sponsor licence is obtained, franchises must adhere to compliance requirements set by the Home Office. These obligations ensure international employees meet visa conditions, including fulfilling their designated roles and reporting any employment changes.
Franchises must store and update employee records, including contact details, passport copies, biometric residence permits (BRPs), employment contracts, and National Insurance numbers. Any major changes, like business ownership alterations, must be reported through the Sponsor Management System (SMS) to UK Visas and Immigration (UKVI).
Conducting right-to-work verifications is compulsory. Employers must retain valid identification records and confirm that international employees maintain legal work status.
Home Office compliance checks, both scheduled and surprise inspections, evaluate whether franchises uphold their sponsor duties. These inspections assess:
The Home Office continuously evaluates franchise compliance through audits, offering guidance when necessary to maintain sponsorship integrity.
By fulfilling these responsibilities, franchises demonstrate a commitment to legal compliance and operational transparency.
Franchises must submit their renewal application via the Sponsor Management System (SMS) and pay the corresponding fee based on their business size.
Ensuring all SMS records are accurate and up to date is crucial. This includes details about Authorising Officers, Level 1/2 Users, franchise locations, and employee records. Any discrepancies could delay or jeopardise renewal.
After submission, a signed submission sheet must be sent to the Sponsor Licensing Unit to proceed with processing.
The Home Office assesses compliance over the past four years, focusing on:
If additional documents are requested, franchises must respond within five days to avoid risks such as licence suspension or reduced CoS allocations.
Franchises with a strong compliance history and multiple successful renewals may be eligible for a simplified renewal, reducing the intensity of background checks.
Franchises that haven't been inspected in the past four years should anticipate a renewal-related compliance visit. Ensuring that licence details and SMS records are updated before applying is critical.
By carefully following these procedures, franchises can ensure a smooth renewal process, maintaining eligibility to hire international talent.
Are you aiming to strengthen your workforce through global recruitment while navigating complex visa processes? Tech Nomads offers tailored strategies and comprehensive support to help businesses and professionals manage their workforce needs efficiently.
Tech Nomads is a global mobility platform that provides services for international relocation. Established in 2018, Tech Nomads has a track record of successfully relocating talents and teams. Our expertise in adapting to regulatory changes ensures our clients’ satisfaction and success.
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