Sponsor Licence Change of Ownership

September 27, 2024
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Any organisation holding a sponsor licence must adhere to strict reporting requirements, especially when there’s a change of ownership. Failing to notify the Home Office about such changes can lead to serious compliance issues, including possible sponsor licence revocation. This guide provides an overview of what constitutes a change of ownership, how it impacts your sponsor licence, and how to report these changes effectively.

What is a Sponsor Licence Change of Ownership?

  • Definition: A change of ownership occurs when there is a transfer of control in a business, such as through a merger, acquisition, demerger, or change in business structure.
  • Impact on Sponsor Licence: The sponsor licence is non-transferable, meaning that a new owner cannot simply continue using the existing licence.
  • Consequences of Not Reporting: Failure to report a change could lead to sponsor licence revocation and impact the employment status of sponsored workers.

Organisational Changes That Require Reporting

Changes that must be reported include:

  • Change of Address: Updating your business location details.
  • Change of Business Name: Any rebranding or formal name change.
  • Changes to Key Personnel: Alterations to those named on the licence, such as the Authorising Officer or Level 1 User. For more details on updating key personnel, see our article on the Sponsor Licence Authorising Officer.
  • Change in Company Size or Structure: Such as moving from an SME to a larger enterprise.

It’s essential to update these details through the Sponsor Management System (SMS), which can be done by a Level 1 User. Read more about sms level 1 user responsibilities.

How to Report a Change of Ownership Using the Sponsor Management System (SMS)

Step-by-Step Guide:

  1. Access the SMS: Log in using your Level 1 User credentials. If you need guidance, refer to our Sponsor Management System guide.
  2. Select ‘Change of Ownership’: Within the SMS, follow the prompts to submit the change.
  3. Provide Required Documentation: Attach necessary documents like a transfer of ownership agreement.
  4. Timeline: Submit this report within 20 working days of the change.

Note: Delays or errors in reporting can result in serious consequences, including a review of your licence status. For help with the process, our team is available to contact.

When You Might Need a New Sponsor Licence

  • Complete Takeover: If a company is fully acquired, the new entity must apply for a fresh sponsor licence. Learn more about the process in our Sponsor Licence Application guide.
  • Mergers or De-mergers: Significant changes to the company structure might necessitate a new licence.
  • Changes in Business Structure: Such as shifting from a sole proprietorship to a limited company.

How Change of Ownership Affects Sponsored Workers

  • Employee Status: Sponsored workers can be impacted by ownership changes, potentially jeopardising their visa status.
  • Transfer to a New Licence: If a new sponsor licence is required, the process of transferring sponsored workers will need to be managed carefully.
  • Communication: It’s essential to inform sponsored workers about any changes promptly to ensure they are aware of potential impacts on their employment.

For guidance, contact us today for a no-obligation discussion.

Common Challenges When Reporting Changes

  • Delayed Reports: Large organisations may face internal communication challenges, leading to delayed updates on the SMS.
  • Incorrect Documentation: Submitting incomplete or incorrect documents can cause significant delays or even refusals.
  • Handling Compliance Checks: The Home Office may conduct compliance checks, so it's vital to ensure all information is accurate.

To prevent compliance issues, review our Sponsor Licence Compliance guide.

Consequences of Failing to Report Changes

  • Penalties and Fines: Non-compliance can result in hefty fines.
  • Sponsor Licence Suspension or Revocation: The Home Office may suspend or revoke your licence, affecting your ability to sponsor workers. Read our guide on sponsor licence revoked for more details.

How Borderless Can Help with Sponsor Licence Change of Ownership

  • Expert Advice: Our team can assist with preparing and submitting changes through the SMS.
  • Compliance Audits: We help ensure all reporting is up-to-date, preventing potential issues with the Home Office.
  • Training and Guidance: We offer tailored training on how to manage your sponsor licence effectively.

If you need assistance, contact us today for a no-obligation discussion.

Frequently Asked Questions (FAQs)

  1. Do I need a new sponsor licence after a merger?
    • Yes, a merger often requires a new sponsor licence.
  2. How quickly do I need to report a change of ownership?
    • Within 20 working days via the SMS.
  3. What happens if I fail to report the change?

Conclusion

Reporting a sponsor licence change of ownership is a critical responsibility that should be addressed promptly to avoid severe consequences. Ensure you remain compliant by keeping your information updated through the SMS and seeking expert guidance where necessary.

For further advice on sponsor licence management, explore our resources on sponsor licence fees and sponsor licence renewal.

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