Q&As

If a share sale results in a sponsoring company (A) having a new immediate owner (B) and the new owner (B) has a sponsor licence but does not want (A) added as a branch, is (A) still required to apply for a new licence?

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Produced in partnership with Gary McIndoe of Latitude Law
Published on: 12 April 2022

Changes in a sponsoring company’s ownership is a topic is covered by the Home Office guidance: ‘Workers and Temporary Workers: guidance for sponsors’; information on this particular question can be found within Part 3: Sponsor duties and compliance, and falls under the section ‘Mergers, takeovers and similar changes’.

This guidance document provides information on the required steps to be taken when a sponsoring company is involved a change of ownership, along with takeovers, merger, and other changes. It should be noted, however, that the guidance is limited to certain more commonly occurring scenarios, leaving some ambiguity as to the requirements of a sponsor in more unusual or complex circumstances. This question is one such situation.

Under section C4, which deals with this topic, the guidance states that:

‘…General principles—

C4.1. Your sponsor licence

Gary McIndoe
Gary McIndoe

Latitude Law

Gary has practised UK-inbound immigration, nationality and refugee law for more than 25 years. His first taste of work in his field was at the Home Office, where his role included policy work on the return of Hong Kong to Chinese control in 1997.

He qualified as a solicitor in 2000 and founded Latitude Law in 2007; the firm has grown steadily since then and currently has a 15-strong legal team undertaking a full range of immigration work.

Latitude has recognised expertise in guiding businesses, from start-ups to mulitnationals, through sponsor licensing and related regulatory processes. It is also noted for its work with high-net-worth individuals, with particular focus on the sole representative of overseas business, innovator and start-up visa categories.

Gary and his team have developed strong links with exceptionally talented individuals in a burgeoning regional tech sector. Latitude also continues to take on complex asylum and deportation work. The firm has a satellite office in London and a subsidiary business in Brussels. Gary is registered as a foreign lawyer with the Brussels Bar.

Gary is an AILA international associate and has contributed to panels at the organisation’s global and European conferences in recent years. He is chair of trustees of Electronic Immigration Network, a charity providing information services in the sector, and a patron of Middle Eastern human rights charity Salam DHR. In 2021 he co-authored, with Gemma Tracey, a practical guide to deportation (Law Brief Publishing).


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Jurisdiction(s):
United Kingdom
Key definition:
Sponsor definition
What does Sponsor mean?

In acquisition finance transactions the institutional equity investor that acts as the financial sponsor of the transaction.

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