How Will a Change in Business Ownership Impact My Sponsor Licence?
27/11/2024
Businesses change every day. It’s natural for companies to evolve into providing different services based on new relationships, or for the shares of control to change over time. However, an ownership change can have a major impact on your Sponsor Licence.
This may be obvious if you have sold your business, however your Sponsor Licence will still be impacted if there has been a restructuring. We’ve come across several instances where companies have made restructures and ownership changes without making the necessary changes to their Sponsor Licence status.
We’ve therefore written this blog to explain what you need to do in these situations to maintain your Sponsor Licence.
Which Business Changes will Impact my Sponsor Licence?
It’s important to note that Sponsor Licences are not transferable across companies. You are issued with one Sponsor Licence based on your original application, and based on how your company was set up and managed at the time of this application.
Here’s a list of some common business ownership changes that will impact your Sponsor Licence:
- Changes in who has significant control over the business based on controlling shares
- Changes of ownership in your parent company
- If your company has been sold and this sale has caused share control to change
- If your company is being fully taken over by another company
- Splitting your company to form two or more new companies
In most of these cases, you will need to apply for a new Sponsor Licence. We’ll explain this in more detail below. First, it’s important to make sure you have notified the Home Office of these organizational changes.
When Do I Need to Notify the Home Office of Changes to My Business?
One of your main duties as a Sponsor Licence holder is to report any significant changes to your business or to your Skilled Worker’s working arrangements.
This includes notifying them of significant changes to shares or control over your company. You must report any ownership change within 20 working days of it occurring. If you don’t report these changes, you risk your Sponsor Licence being downgraded or revoked entirely.
Changes are reported online through the Sponsor Management System.
Do I Need a New Sponsor Licence if My Company’s Significant Owners Have Changed?
Yes, you need to apply for a new Sponsor Licence if the significant owners of your company have changed.
This includes situations where you have a new significant owner, or where a significant owner leaves.
Even though you need to first report this change, you still need to apply for a new Sponsor Licence after reporting. This is because your Sponsor Licence is tied to the business details of your company and its owners from the moment you made your application.
If there’s a change in your controlling shares, you will need to report and then make a new Sponsor Licence application within 20 working days of the change taking place.
This is vitally important, as failing to make this new application means you run the risk of your Skilled Workers’ permissions being cancelled.
If you need further information about making a new Sponsor Licence application, please see our Sponsor Licence services page.
Do Skilled Workers need to apply for a new visa if their company needs to apply for a new Sponsor Licence?
No, your Skilled Workers don’t need to apply for new visas. You will be able to transfer them to your new Sponsor Licence once this has been granted.
They also won’t have to make a change in employment application. They will retain the same Skilled Worker visa they had under your previous licence, with the same rights and expiration date.
These situations can however be complex, particularly if your business is going through a significant sale or takeover. If this is the case, we’d encourage you to seek advice from Sponsor Licencing professionals.
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