Can A Small Business Apply For The UK Scale-up Visa Licence In 2025?

Key Points (Quick Summary)

• Small businesses may qualify via standard or endorsement pathways
• Standard route requires 10+ employees and 20% growth over three years
• Endorsement route supports newer ventures with proven growth potential
• Small businesses pay lower application fees under updated thresholds
• Meeting scale-up criteria unlocks access to high-growth talent

Let's Get Right to It

Yes, a small business can apply for a UK Scale-up Visa Sponsor Licence but there are two different paths and not every small business will qualify on the spot.

The key is understanding how the system works, what the Home Office is looking for, and whether your business meets the standards set for "scale-ups."

Let's break it all down so you can figure out whether this route is right for your company and how to approach it if it is.

What Is a Scale-up Sponsor Licence?

This licence allows UK businesses to sponsor non-UK nationals under the Scale-up Worker Visa route, a pathway introduced by the Home Office to help high-growth businesses hire internationally with fewer restrictions.

Compared to the traditional Skilled Worker route, it's leaner, more flexible, and more cost effective (Immigration Skills Charge exempt) – if you qualify.

But here's the catch: the bar for what qualifies as a "scale-up" is high. And that's where small businesses might need to get creative.

Two Ways Small Businesses Can Qualify

1. Standard Growth Track (The Traditional Route)

This is for companies that are small now but have a solid growth record behind them.

To qualify this way, your company must:

• Have had 10 or more employees at the start of your growth period (36 months before the Home Office assessment is carried out)
• Show at least 20% year-on-year growth in either turnover or staff count over a three-year period
• Be VAT registered, operating in the UK, and fully compliant with tax and reporting standards

Think of it like this: the Home Office isn't looking for newbies. They're looking for companies that have already proven they're scaling.

So, if you're a small team today but had 10+ staff three years ago and your growth trajectory is solid and well-documented, this could be your route.

2. Endorsing Body Route (For Ambitious New Ventures)

Not every small business has a three-year growth trail behind it. Maybe you're 18 months in. Maybe you just secured your first big funding round. That's where the Endorsing Body Pathway comes in.

To qualify via endorsement, your business must:

• Have an HMRC footprint of less than 4 years
• Be able to demonstrate growth in line with the standard pathway within the next 4 years
• Be registered and operating in the UK (VAT, PAYE, business bank account) with sufficient finance to pay salaries
• Have at least 10 employees on payroll (not contractors)
• Meet 3 out of 5 additional criteria, such as:
  • You can show more than 20% annual growth in revenue or employment over a 2-year period
  • You have raised £1M+ through equity financing in the last 12 months
  • You have participated in a government scale up programme such as Innovate UK EDGE or received relevant government funding such as an Innovate UK grant
  • You have international operations generating 10% of overall turnover
  • You can demonstrate R & D expenditure of either 10% of your operating costs for 3 years or 15% in one of the last 3 years

In short, this is for younger companies that might not have hit 3 years of growth yet, but clearly show scale-up potential.

Common Misconception: "We're Too Small"

A lot of founders self-reject because they think small means not eligible. That's not always true.

Size isn't just about headcount. It's about trajectory.

If you're a team of 12 today but growing fast, and your financials show solid revenue expansion, you're exactly the type of company the Scale-up Visa was built for.

But you'll need to document that growth and do it in a way that speaks the Home Office's language.

What the Home Office Actually Looks At

For the Standard Track

The Home Office wants:

• HMRC records showing consistent staff or turnover increases
• Payroll data
• Filed accounts or reports from Companies House
• A clear org chart and explanation of roles and projected hires

For the Endorsement Route

The endorsing body wants to see:

• Pitch decks, product roadmaps, or investor decks
• Evidence of innovation (IP, tech stack, or unique methodology)
• Evidence of scalability (the potential for geographic scalability)
• Clarity around your team and hiring plan (evidence of a strong founding team as well as who you're hiring, when, and why)
• Confirmation of your market size and its potential for growth

How Long Does It Take?

• Endorsing Body Approval:

• 4 weeks

• Sponsor Licence Approval:
  • Standard: 8 weeks (no priority processing available)
• Certificate of Sponsorship (CoS):
  • You will be granted a CoS allocation with the licence. If you need to apply separately you can use the priority service to obtain a CoS in 1 week
• Visa Approval (for your sponsored employee):
  • 3–4 weeks standard
  • 1 week with priority processing

So if you need to use the endorsement pathway you're looking at 16 weeks total from start to finish, if all your documents are in order or If you qualify for the standard pathway, you're looking at 12 weeks.

What If You Don't Qualify Yet?

Then build toward it.

If you're early-stage and don't yet meet the employee or growth thresholds, consider:

• Hiring through Graduate or High Potential Individual (HPI) visas — these don't require sponsorship
• Working with overseas contractors until you're eligible
• Starting an internal HR compliance system now — it'll make your eventual sponsor application smoother
• Pursuing Innovate UK grants or accelerator programs that strengthen your endorsement case

Costs: Are Small Companies at a Disadvantage?

Actually, no. Small businesses benefit from reduced fees.

If your business meets the Companies Act definition of "small" (turnover under £15M, fewer than 50 staff, and net assets below £7.5M), you qualify for:

• Reduced sponsor licence application fee: £574 instead of £1,579
• Lower Immigration Skill Charge if you are also utilising the Skilled Worker or Senior or Specialist Worker routes (£364 per year instead of £1000)

Pros and Cons of the Scale-up Worker route for Small Businesses

Final Thoughts: Should You Go for It?

If you're a small business with a real growth trajectory and plans to hire skilled international workers, the Scale-up Visa Licence is absolutely worth pursuing.

It gives you access to talent, adds credibility with investors, and removes much of the red tape involved in traditional sponsorship.

Here's what we recommend:

• Already scaling? Go for the standard route and apply now.
• Ambitious but early? Build your endorsement case and work with the right advisors.
• Still too new? Use interim solutions like Graduate or HPI visas and start preparing your systems for compliance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.