How Ownership Changes Impact Your Sponsor Licence

Your Sponsor Licence is not transferable, and the implications of a change in your company's ownership depend on several factors. In this article, we will explore how such changes can affect your licence.
In modern business, changes in ownership are a common occurrence that can affect many aspects of a company's operations. One of the critical elements for organizations working with international personnel is the Sponsor Licence. In this article, we will explore how different types of ownership changes can impact your licence and what steps need to be taken to avoid legal violations.
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.
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