The UK’s expansion worker sponsor licence explained

Welcome to our comprehensive Doing Business in the UK article series, designed specifically for international businesses and investors looking to establish or expand their operations in the United Kingdom. This series aims to provide you with essential insights and practical guidance on navigating the UK business landscape.

Throughout this series, we will cover the initial setup of your business, understanding business taxes, and the process of registering a UK business. We will also delve into workforce setup, payroll, employment costs and international hiring considerations for businesses employing people in the UK. Finally, we also explore accountancy processes, compliance and management reporting requirements, and discuss the complexities of importing goods and services into the UK.

If you’re an overseas business looking to establish a presence in the UK, the UK Expansion Worker Sponsor Licence could be your gateway to success.

Designed to encourage foreign investment, this route allows international companies to sponsor skilled workers from their home country to help set up and manage UK operations.
 

What Is the Expansion Worker Sponsor Licence?

Part of the Global Business Mobility sponsorship routes, the Expansion Worker pathway is tailored for companies that currently have no trading presence in the UK. Unlike other sponsorship options, there’s no requirement to already have a UK workforce. Instead, this route is ideal for businesses planning to establish a UK presence or transfer staff temporarily to support expansion.

To apply for a UK Expansion Worker Sponsor Licence, your business must:

  • Open a UK branch of your overseas company or set up a subsidiary
  • Secure UK business premises in the overseas company’s name (e.g., lease agreement or proof of purchase)
 

If your business already has a UK trading presence, you may want to consider alternative routes such as the Skilled Worker option.

It’s important to note that the Expansion Worker route is considered a temporary solution while your company grows its UK operations. A key requirement is providing a credible expansion plan, demonstrating your genuine intention and ability to establish a UK trading presence within two years.
 

Why choose this route?

You might wonder: “Why not apply for a Skilled Worker licence straight away?” While that’s possible, meeting the Skilled Worker criteria can be challenging for new businesses. For example, requirements such as holding a UK bank account or appointing a UK-based Authorising Officer with settled status can be difficult for companies just starting out.

The Expansion Worker route helps you navigate these often hard to reach requirements for new companies in the UK, making it easier to get your UK operations off the ground.
 

How BDO can help

At BDO, we support businesses of all sizes through every step of the process, including:

  • Setting up a UK branch or establishment
  • Creating business plans to evidence your UK expansion strategy
  • Providing tax advice for both your company and your employees
  • Managing your sponsor licence and visa applications
  • Assisting with transitioning your licence to another type as your UK business grows
 

As this is a two-stage application process, we recommend starting as early as possible. The Expansion Worker route typically has the longest processing time and may not offer the fast-track options available for other visa types.

If you’d like to learn more, contact the BDO Immigration Team today.

Our specialist employment tax and immigration team can provide bespoke support for your organisation’s employment tax and immigration questions and can support with all questions around international employees. Get in touch with us for more information or download our Doing business in the UK brochure:

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