You've just set up your UK company. Maybe you haven't invoiced a client yet. Can you apply for a sponsor licence? Yes. There's no legal requirement to have been trading for a specific period. But the Home Office won't approve it easily.
What the Home Office Actually Looks For
The Home Office care about whether your business is real.
They want to know your company is a genuine UK operation capable of employing someone and meeting sponsor duties. New companies get approved all the time. The difference is how you demonstrate genuineness without revenue.
The 18 Month Threshold Changes Things
If your company has been operating in the UK for less than 18 months, the Home Office classifies you as a startup. This triggers one mandatory requirement: proof of a current corporate bank account with a UK-registered bank that is authorised by both the Financial Conduct Authority and the Prudential Regulation Authority.
Fintech accounts like Revolut don't count. You need a proper UK-regulated business bank account, which can take weeks to set up.
Minimum Business Setup Requirements
Companies House registration, HMRC registration for PAYE and National Insurance, and employer's liability insurance showing £5 million cover from an FCA authorised insurer are all required. These are baseline requirements for every sponsor.
Evidence That Proves Genuine Activity
Without trading history, you need other proof.
Lease agreements for business premises work. A letter from your bank describing your dealings adds credibility. Contracts for goods or services show business intent. Business plans detailing your market and revenue explain why the role exists.
If you're connected to an overseas business, evidence of that relationship carries weight. UK expansion with commercial reasoning makes more sense than a company from nowhere.
The Role Vacancy Justification Problem
The Home Office assesses whether the role is genuine. Does it exist within your business? Can you afford the salary? Would a legitimate business in your situation need this position?
Brand new companies face harder questions. No revenue, no clients, no team, but you need a developer on £50,000? The job description needs to make sense.
The Home Office has seen every version of roles created solely for immigration purposes.
Why New Companies Get Refused
A Y & J Solicitors have worked on over 5,000 immigration cases. The refusal patterns for new companies follow predictable themes:
| Common Refusal Reason | What This Actually Means |
| Bank account issues | Using Revolut or other non-FCA/PRA accounts |
| Insufficient business evidence | Only Companies House registration, nothing else |
| The role doesn't fit | £50k developer role for a company with zero clients |
| Salary unrealistic | Can't afford stated wages with no revenue |
| Weak key personnel | The Authorising Officer lacks credible authority |
| Missing HR systems | No documented processes for compliance |
The Home Office isn't rejecting you because you're new. They're rejecting you because the application doesn't prove what it needs to prove.
How to Strengthen Your Application
Get a proper UK-regulated business account before applying. While that's processing, gather your other evidence.
HR systems matter even for a one-person company. Document your processes for tracking hours, recording absences, right-to-work checks, and Home Office reporting. This doesn't require expensive software. It requires showing you understand sponsor compliance.
The role documentation needs detail. Job description, organisational chart, and explanation of why you need this skill set now. For self-sponsorship, answer the "why UK" question. Why is it necessary to be physically present in the UK? UK market access? Regulatory requirements? Be specific.
Overseas business connection? Show the company's trading history, explain why UK expansion makes commercial sense, and prove you have funding.
What Actually Works
New companies get sponsor licences regularly. The ones that succeed understand what the Home Office is checking for and address those concerns directly.
The difference isn't about what evidence you have. It's about how you frame it. Does your application tell a coherent story about a real business that happens to be new?
A Y & J Solicitors works with new companies to structure applications that answer caseworker questions before they're asked. Getting refused means losing your fee, waiting months to reapply, and explaining that refusal in every future application.
Get Expert Sponsor Licence Support
Planning a sponsor licence for a new company? A Y & J Solicitors specialises in startup and self-sponsorship applications. We help you understand what evidence you need and how to structure your business for approval.
We advise new companies to structure and evidence their trading activity properly before applying for a Sponsor Licence. If you can show trading history, then we can get started on your application strategy right away. Book a free call with A Y & J Solicitors to improve your chances of securing the sponsor licence.