Understanding the Cost of a Self-Sponsorship Visa in the UK

Self-sponsorship has become one of the most talked-about pathways for business-minded immigrants who want to live and work in the UK legally. But alongside the interest comes a lot of confusion, especially around cost.

Many people hear about self-sponsorship and assume it’s either:

A cheap shortcut, or
An immigration “hack”
The reality is very different.

Self-sponsorship is a legitimate, structured, and often expensive pathway that combines business setup, compliance, and immigration processes. Understanding the full cost upfront is critical if you want to avoid wasted money, failed applications, or serious legal trouble.

This article breaks down the real costs of self-sponsorship in the UK, so you can decide whether it’s right for you.

What Is Self-Sponsorship in the UK?

Self-sponsorship is not a standalone visa category.

Instead, it is a legal strategy where you:

1. Set up or acquire a genuine UK business
2. Obtain a Sponsor Licence for that business
3. Sponsor yourself for a Skilled Worker visa in a legitimate role within the company
This route is tightly regulated and heavily scrutinised by UK authorities. That’s why cost, structure, and compliance matter so much.

Why Understanding the Full Cost Matters

Most failed self-sponsorship attempts happen because people:

1. Budget only for visa fees
2. Ignore business and compliance costs
3. Underestimate professional fees
4. Start before they are financially ready
Self-sponsorship is not just about paying fees — it’s about building a real business that can withstand scrutiny.

The Key Cost Categories of Self-Sponsorship
To understand the true cost, you need to look at five major areas.

1. Business Setup or Acquisition Costs
Before any visa process begins, you must have a genuine UK business.

Depending on your route, this could include:

• If Starting a Business:
• Company registration
• Branding and website
• Business address and systems
  Initial operational setup
  Typical range:
  £500 – £3,000+ (depending on how professionally it’s done)

If Buying an Existing Business:

• Purchase price
• Due diligence
• Legal and advisory costs
  Typical range:
  £5,000 – £50,000+ (varies widely)

The business must be real, trading, and viable, not a shell company.

 
2. Sponsor Licence Costs
Once the business is set up, it must apply for a Sponsor Licence.

Government fees:

• Small company sponsor licence: £574
• Medium/large company sponsor licence: £1,579
• Additional potential costs:
• Compliance preparation
• HR systems
• Policies and record-keeping frameworks
  Many applications fail because the business is not sponsor-ready, even if the fee is paid.

 
3. Skilled Worker Visa Costs
After the sponsor licence is granted, the business can sponsor you for a Skilled Worker visa.

Key costs include:
Certificate of Sponsorship (CoS): £525
Immigration Skills Charge (ISC):

£480 per year (small businesses)
£1,320 per year (large businesses)
Visa application fee (varies by length and location)
Immigration Health Surcharge (IHS): charged per year of stay
Typical visa-related total:
£3,000 – £7,000+ per person

These costs increase if dependants are included.

 
4. Professional & Advisory Fees
This is where many people underestimate.

Self-sponsorship involves:

• Business structuring
• Compliance preparation
• Immigration strategy
• Documentation
• Risk management
  

Professional fees may include:

• Business consultants
• Immigration solicitors
• Accountants
• Compliance specialists
  Typical range:
  £3,000 – £10,000+ depending on complexity and level of support

Cheap shortcuts here often lead to refusals, audits, or licence revocation.

 
5. Ongoing Business & Compliance Costs
Self-sponsorship is not a one-off payment.

You must maintain:

• Active trading
• Payroll and tax compliance
• HR records
• Sponsor duties
• Annual filings and audits
  

Ongoing annual costs:
£2,000 – £5,000+ (varies by business)

Failure to maintain compliance can result in visa cancellation.

 
Estimated Total Cost of Self-Sponsorship (Realistic View)
When everything is considered, a realistic estimate for self-sponsorship is:

£15,000 – £30,000+
This is not a fixed price - it depends on:

• Business route (start vs buy)
• Length of visa
• Whether you have dependants
• Professional support level
  Anyone promising self-sponsorship for a few thousand pounds is either:
• Cutting corners, or
• Putting you at serious risk

Is Self-Sponsorship Worth the Cost?
For the right person, yes.

Self-sponsorship can offer:

• Legal right to live and work in the UK
• A pathway to long-term settlement
• Business ownership and control
• Flexibility compared to employer sponsorship
  But it only works when approached strategically and professionally.

Common Mistakes That Increase Costs

• Starting without clarity
• Using non-compliant job roles
• Poor business documentation
• Ignoring ongoing obligations
• Working with unqualified advisers
  These mistakes often cost more to fix than doing things properly from the start.

The Smart First Step: Clarity Before Commitment

Because of the complexity and cost involved, self-sponsorship is not something to rush into.

The smartest first step is to:

• Assess your eligibility
• Understand the business requirements
• Confirm financial readiness
• Choose the right structure
  This avoids wasted money and failed attempts.

Final Thoughts

Self-sponsorship in the UK is not cheap, and it shouldn’t be.

It is a serious pathway designed for individuals who are ready to:

• Build a real business
• Meet compliance standards
• Invest properly in their future
  If you’re considering self-sponsorship, focus less on finding the cheapest route and more on building the right one.

Need Professional Clarity?

If you’re unsure whether self-sponsorship makes sense for you, or you want a realistic assessment before spending money, start with a paid consultation Session.

This allows you to make an informed decision before committing to a complex and expensive process.