If you’re an entrepreneur eyeing the UK as your next business base, you may have come across the term “self-sponsorship visa route”. While it’s not a formal visa class on its own, it represents a strategic pathway for business owners who want to live and work in the UK via their own company. In this blog I’ll unpack how this works, the recent updates (2024–25) you must know about, how you can leverage it, and what pitfalls to avoid – all in a forward-thinking but traditionally sound manner.
1. What is “Self-Sponsorship”?
In simple terms: you establish (or acquire) a UK business, that business obtains a valid sponsor licence under the Skilled Worker visa route, the business then issues you (its owner/employee) a Certificate of Sponsorship (CoS), and you use that CoS to apply for your Skilled Worker visa. In effect: you become both the employer (via your company) and the sponsored worker.
This is not a separate visa category. Rather, it’s a structure built on the standard Skilled Worker route and sponsorship framework provided by the Home Office / UK Visas and Immigration (UKVI).
Official framework behind the structure
- Under the guidance “Workers and Temporary Workers: Sponsor a Skilled Worker” (version 07/25, valid from 22 July 2025) the rules set out that to sponsor a worker you must:
- hold a valid sponsor licence for the Skilled Worker route.
- satisfy yourself that the worker will be filling a genuine job that meets the skill-level and salary requirements.
- assign a valid Certificate of Sponsorship to that worker.
- Legal commentary on the “self-sponsorship” concept confirms the route is available to an individual who:
- either owns (or sets up) the UK company;
- the company holds a sponsor licence;
- the company assigns a CoS to the individual;
- the individual applies under Skilled Worker for that role.
Thus the official rules on licence, CoS, salary/skill, etc., apply in full — whether the sponsor is a third-party employer or your own company.
Key Points to Emphasise (and Ensure)
- The business must be genuine and operating lawfully in the UK. The sponsor guidance emphasises this under the section on applying for a licence.
- The role you (as the sponsored worker) fill must meet the Skilled Worker route’s criteria: appropriate skill level (often RQF 6+ depending on occupation), salary at or above the “going rate” or general threshold, etc.
- The employer (your company) must observe all sponsor duties: accurate records, right-to-work checks, reporting changes, compliance visits.
- Having the company as sponsor does not remove the standard visa applicant’s obligations: you still must meet English language requirements, show financial maintenance, etc.
Why clarify “self-sponsorship”?
Because it is easy to mis-state: “Can I just form a company and issue myself a visa?” The answer: not automatically. You must follow the precise sponsorship/visa rules. Some legal commentary warns of misconception: e.g., a company’s director cannot simply issue themselves a CoS without satisfying the genuine business and role criteria.
“Self-sponsorship is the combination of a sponsor licence and a Skilled Worker visa, where the owner … of the company … is at the same time the identified migrant to be sponsored.”
Important: There is no separate “Self-Sponsorship Visa” category on the official government website.
2. Why It’s Attractive for Entrepreneurs
Here are key reasons this route appeals to business-owners:
- You retain full ownership/control of the UK company and you effectively become both employer and employee.
- You don’t need a third-party UK employer to issue the sponsorship.
- Via the Skilled Worker route you can lead to Indefinite Leave to Remain (ILR) after a period (typically 5 years) and eventually British citizenship.
- You bring your family with you (spouse/partner and children) under the Skilled Worker route, subject to certain conditions.
3. Recent Updates & Why They Matter (2024-25)
To rank well and to stay compliant, you must keep up with recent changes. Here are the major updates that impact self-sponsorship via Skilled Worker:
3.1 Salary & Skill Thresholds Revised
- From 22 July 2025, the general salary threshold for new Skilled Worker sponsorships rises to £41,700 for most roles.
- For roles at RQF 3–5 (medium skilled), these are now eligible only if they appear on the Temporary Shortage List (TSL) or the new Immigration Salary List.
- The overhaul reduces many previously eligible occupations and job codes.
3.2 Sponsor Licence Guidance Updated
- The latest version of “Workers and Temporary Workers: guidance for sponsors” (v07/25) became valid from 22 July 2025.
- The Home Office guidance clarifies that a sponsor licence must not be used to sponsor a worker purely in a “personal capacity” (i.e., the business must be genuine, trading, with a real need for the role).
3.3 Compliance & Business-Genuineness Scrutiny
- Businesses with less than 18 months trading may face higher scrutiny: they’ll need documents showing the business is genuine (bank statements, invoices, trading history) even though revenue may not yet be robust.
- New rules around salary payments: for self-sponsored directors/shareholders, the Home Office is paying closer attention to what counts as “salary” and what is simply profit/distribution. (See SW 14 rule changes).
3.4 Settlement & Long-Term Rights
- Via Skilled Worker you can qualify for ILR (after 5 years) provided you meet continuous residence, salary, job, and absence requirements.
- Future reforms hinted: for example, tougher English language tests or changes to dependants may come.
4. Step-by-Step: How the Self-Sponsorship Journey Works
Here’s the typical flow, tailored for business owners:
Step 1: Establish or Acquire a UK Business
- Register or acquire a UK limited company (via Companies House).
- The company needs a viable structure: a UK bank account, appropriate business address, possibly PAYE/NI registration if employing staff.
- If you’re acquiring an existing company, review its trading history, financials, and any immigration compliance history.
Step 2: Apply for the Sponsor Licence (for the company)
- The company applies to the Home Office for a Sponsor Licence (Skilled Worker category).
- You’ll need to appoint key personnel: Authorising Officer (AO) settled in the UK, HR or training officer, and someone to handle record-keeping.
- Submit required documents: e.g., business bank statements, VAT registration (if applicable), HMRC PAYE registration, company organisational chart, employment contracts.
- Timeline: typically 4-8 weeks for licence decision (can vary).
Step 3: Assign a Certificate of Sponsorship (CoS) and Apply for the Skilled Worker Visa
- Once licence approved, the company issues you (owner/employee) a CoS for a role within the company that meets the Skilled Worker criteria.
- You apply for the Skilled Worker visa: you’ll need to meet the salary/skill/English/language/maintenance criteria.
- Processing times: e.g., 3 weeks if applying from outside UK (standard).
Step 4: Work in the UK, Build Residency, and Move Towards ILR
- You begin working for your UK company under the Skilled Worker visa.
- Ensure you meet all your sponsor duties and your company meets its ongoing sponsor compliance (record-keeping, right to work checks, reporting changes).
- After 5 years of continuous residence under the Skilled Worker route (and meeting all requirements) you can apply for ILR. Then after a further period, you may apply for British citizenship.
5. Key Eligibility & Requirements (Non-Negotiables)
Here’s what you must satisfy if you choose this route:
- You must hold a valid passport and meet any standard immigration health/character requirements.
- Your UK business must be genuine and operating lawfully in the UK. Even if newly founded (less than 18 months), you must demonstrate viability with documents.
- The role the company gives you must be at an appropriate skill level (usually at least RQF 3, and increasingly RQF 6+) and meet the salary threshold (currently £41,700 for many roles) or the “going rate” for that occupation code.
- You must meet the English language requirement (currently at least CEFR B1 for Skilled Worker).
- If your company is going to pay you salary, it must be genuine salary (i.e., not just profit distributions) and must meet the Sponsor Licence obligations. New guidance emphasises this.
- The company must comply with all sponsor duties (right to work checks, monitoring of sponsored workers, reporting cessation of business etc.) continually.
6. Costs – What You Should Budget
While costs vary by business size, here are typical items you should plan for:
- Sponsor Licence application fee (varies by company size).
- Certificate of Sponsorship (CoS) fee (note: this was increased significantly in recent reforms).
- Skilled Worker visa application fee for you (and any dependants).
- Immigration Health Surcharge (IHS).
- Business set-up costs (company registration, bank account, payroll system).
- Compliance costs: perhaps professional legal/advisory support, HR management tools, audit preparation.
Because this is your business and visa linked, budgeting for the business operations is crucial.
7. Benefits & Strategic Considerations
Benefits
- Entrepreneurial freedom: you run your own business, and that business acts as your visa sponsor.
- Control: you choose the business direction, you’re not tied to a third-party employer’s whims.
- Family rights: Your spouse/partner and children can join you under many Skilled Worker cases.
- Settlement path: Via Skilled Worker you can build toward ILR and citizenship if you stay compliant.
Strategic Considerations
- Because this is not a “light touch” route, you must accept full legal and operational responsibility: company governance, immigration compliance, employment law.
- Being prepared with good documents and a realistic business plan strengthens your case (especially if your company is newly trading).
- You must stay up-to-date with immigration rule changes (e.g., salary thresholds, eligible occupations, “genuine business” tests) — this is vital to avoid surprises.
8. Comparison with Other UK Business/Entrepreneur Routes
To ensure you choose the right strategy, here’s how self-sponsorship under the Skilled Worker route stacks up:
| Route | Ownership/Control | Investment Required | Path to Settlement | Suitable For |
|---|---|---|---|---|
| Self-Sponsorship via Skilled Worker | You can own 100% of your UK company and be employed by it. | No fixed investment minimum, but must show business viability + meet salary thresholds. | Yes — after 5 years typically. | Entrepreneurs who have business experience and wish for long-term UK presence. |
| Innovator Founder visa | You must secure endorsement and business must be innovative, scalable. | Often substantial investment or backing, needs business viability. | Yes — there is a path, but business must hit milestones. | Founders with disruptive business ideas. |
| Global Business Mobility – UK Expansion Worker | For overseas business sending staff to UK subsidiary/branch. | No direct “investment visa”; trading history required. | No direct ILR via this route. | Businesses already trading overseas who wish to expand UK operations. |
Thus self-sponsorship gives a unique blend of ownership + settlement path, provided you meet the rigorous requirements.
9. Challenges & Risks You Must Know
Even with best preparation, there are risks you must mitigate:
- Compliance visits & audits: The Home Office may inspect your business, check record-keeping, verify your genuine vacancy, ensure salary payments are correct.
- Business performance matters: If your business doesn’t trade genuinely, or if you fail to meet sponsor duties (e.g., you stop trading, reduce salary, or change job description) the licence may be suspended/ revoked and your visa may be curtailed.
- Rule changes: As we saw, salary thresholds and eligible job lists are changing fast. If you’re not prepared, you may be caught out.
- Genuine business test: The Home Office will expect evidence that your business is not a shell, that the role is required, and you are meeting employer duties. A weak business plan, inadequate financials or virtual office setups may lead to refusal.
- Control vs. “personal capacity” concerns: The Home Office has recently flagged that a sponsor licence cannot be used where the migrant is essentially working for themselves in a purely personal capacity. You must show the business has the genuine need.
10. Top Tips for a Winning Application
- Prepare a strong business plan, even if not always strictly required — it strengthens your “genuine business” argument.
- Allocate a realistic salary to yourself that meets or exceeds the going rate for your occupation and the £41,700 general threshold (or whichever applies).
- Appoint an Authorising Officer who is settled in the UK and capable of fulfilling the oversight role.
- Use a physical UK business address, genuine bank account, and have PAYE/NI registration if appropriate (even if initially only you are employed).
- Keep detailed records: contracts, payroll, minutes of meetings, job description that matches SOC code.
- Stay current with changes: As of July 2025 many rules shifted; you need to stay ahead.
- Get professional help early: Legal and accounting guidance will reduce risk of refusal.
- Stay compliant after grant: Meeting your duties is as important as getting the visa.
11. Conclusion
The “self-sponsorship” route in the UK presents a powerful option for business-owners who want freedom, control, and the potential for long-term settlement. It blends the business ownership model with the robust immigration pathway of the Skilled Worker visa. But – and this is key – it demands serious planning, compliance, and up-to-date knowledge especially in light of the recent rule changes (salary, skill thresholds, compliance scrutiny).
If you approach it thoughtfully, with a realistic budget, a genuine business model, and professional backing, this route can be a smart way to build your UK presence and future.
💬 FREQUENTLY ASKED QUESTIONS (FAQs)
1. Is Self-Sponsorship an Official Visa Route in the UK?
No. “Self-sponsorship” is not a separate visa category on GOV.UK. It’s a legal structure that combines two official routes — the Sponsor Licence and the Skilled Worker Visa — allowing you to sponsor yourself through your own UK company.
2. How Does the Self-Sponsorship Structure Work?
You first register or acquire a UK company, apply for a Sponsor Licence for that company, issue yourself a Certificate of Sponsorship (CoS), and then apply for a Skilled Worker Visa. In this setup, you’re both the employer and the sponsored employee.
3. What Are the Main Requirements for Self-Sponsorship?
You must show:
- a genuine UK business with trading potential;
- a valid Sponsor Licence;
- a skilled job role that meets the Home Office’s salary and skill level thresholds; and
- English proficiency at CEFR B1 or higher.
You must also appoint a UK-based Authorising Officer to manage sponsor duties.
4. Can I Bring My Family Under the Self-Sponsorship Route?
Yes. Under the Skilled Worker Visa, you can include dependants — your spouse or partner and children under 18 — as long as you meet income and accommodation requirements.
5. What Is the Minimum Salary for Self-Sponsorship in 2025?
From July 2025, the minimum salary threshold for the Skilled Worker route is £41,700 per year, or the going rate for your job’s SOC code, whichever is higher.
6. Can I Get Indefinite Leave to Remain (ILR) Through Self-Sponsorship?
Yes. After five continuous years on a Skilled Worker Visa — maintaining compliance and salary requirements — you may apply for Indefinite Leave to Remain (ILR) and eventually British Citizenship.
7. What Are Common Reasons for Refusal or Suspension?
- Non-genuine business activity (a “paper company” without real trading).
- Failure to meet sponsor compliance duties.
- Under-reporting or under-paying salary.
- Providing incomplete or misleading documents.
Maintaining a compliant sponsor licence is crucial.