Changes in ownership within your organization can have consequences for your sponsor licence. The licence is not transferable, and the actions you need to take depend on the type of changes. Let’s look at the main aspects.
Types of Ownership Changes
Ownership changes can occur in several ways:
Direct change of ownership: The company is sold as a going concern, or the controlling share is transferred to a new owner.
Partial or complete acquisition of another organization: Your company either gains or loses control over another business.
Creation of new organizations: The company splits, forming multiple new legal entities.
What Happens to the Sponsor Licence?
In the case of a direct ownership change, your licence may be revoked or made dormant if the employees you sponsor move to another sponsor. The licence cannot simply be transferred to a new owner, and in such cases, a new application for the licence is required.
Transfer of Controlling Shares
If the controlling shares are transferred to a new owner, you are obligated to notify the Home Office within 20 working days and submit a new application for the licence. Employees under your sponsor licence can be moved to the new licence without needing to apply for a change of employment.
Mergers and Acquisitions
Complete acquisition of another organization: If you fully acquire another company and its employees transfer to you, you need to apply for a licence if you do not already have one. If you do have a licence, changes must be reported through the SMS system within 20 days.
Complete acquisition of your organization by another: If your employees move to the new owner, the new organization must apply for a licence within 20 days.
Partial acquisitions or divisions: If you are partially acquired or are forming new organizations, it’s important to consider who the new sponsor will be and act accordingly.
Conclusion
Changes in your company’s ownership can significantly impact your Sponsor licence. It is essential to notify the Home Office promptly and submit new applications as needed.
If you have additional questions, please reach out for detailed information and guidance.