What is employer sponsorship and how does it work?

As more and more companies hire globally, employer sponsorship is a process that is becoming increasingly relevant. Understanding how it works could be the difference between securing the best talent — or being left behind.

But what exactly is employer sponsorship? What legal responsibilities does it involve? And, crucially, is it worth the investment?

In this guide, we’ll break down employer sponsorship, how it differs by country, and what you need to consider before hiring international employees through this method. Whether you’re a growing startup or a scaling mid-size company, this article will help you understand just how employer sponsorship works — and whether it’s the right solution for your hiring goals.

What is employer sponsorship?

Employer sponsorship is a process through which a company helps a foreign national obtain a visa or work permit to live and work in a specific country.

The employer acts as the “sponsor,” taking on certain legal and financial responsibilities to ensure compliance with immigration laws.

As the employer, you must typically:

• Prove that the role cannot easily be filled by a local worker
• Submit the relevant documentation to the immigration authorities
• Demonstrate the financial ability to support the employee’s stay
• Comply with all relevant tax, labor, and reporting requirements
  
  

What are the benefits of sponsoring an employee?

While the steps listed above require work and resources, the benefits of employer sponsorship include:

• Access to global talent that may not be available locally
• The ability to expand into new markets with local representation
• Support for internal transfers across countries or regions
• The ability to stay competitive in industries with high skill shortages
  
  

So, how does employer sponsorship work?

It’s important to note that the exact process depends on the laws of the country itself. However, employer sponsorship typically includes the following steps:

1. Determining eligibility

In most cases, your company must meet the relevant eligibility criteria to become a sponsoring employer. This usually includes:

• Being a legally registered business
• Meeting set financial thresholds
• Having a clean record with labor and immigration authorities
  
  

In some countries (such as the UK and Australia), you will need to apply for a sponsorship license before you can sponsor workers.

2. Identifying an eligible role

Generally, only certain occupations are eligible for visa sponsorship. Governments maintain lists of these roles, which are typically based on skills shortages or labor market demand.

The job offer must usually:

• Be full time and genuine
• Pay a minimum salary threshold
• Align with an eligible occupation category
  
  

3. Sponsoring the visa application

Once you are approved to sponsor and the job is eligible, your company can:

• Issue a sponsorship certificate (or equivalent, depending on the country)
• Submit a visa application on behalf of the candidate (or support them in doing so)
• Provide the necessary documentation (such as the job description, salary details, and the employment agreement)
  
  

Employer sponsorship: A real-world example

Let’s say you’re a mid-size fintech startup based in the UK, and you need a senior back-end software engineer with niche experience in blockchain infrastructure.

After months of searching domestically for a suitable candidate, you realize that the only qualified candidate is located in Argentina — and they’re willing to relocate to the UK for the role.

To make this happen, you’d need to:

1. Ensure your company is a registered UK sponsor under the Skilled Worker visa program.
2. Check that the job and salary meet the visa program requirements.
3. Issue a certificate of sponsorship and help the candidate apply for the visa.
   
   

Once approved, the employee would relocate to London and begin work, while your company would need to continue to meet reporting and compliance obligations under UK immigration law.

Common types of employer-sponsored visas

Visa categories vary by country, but some of the most common types of employer-sponsored visas include:

Some of these programs are temporary, while others can lead to permanent residency or citizenship over time.

See also: What is the EU Blue Card, and how does it work?

What are your responsibilities as the employer?

As mentioned, your job isn’t done once the employee arrives. By acting as a sponsor, your company takes on additional legal obligations, which often include:

• Providing accurate job information and compensation
• Covering visa or legal costs (in some jurisdictions)
• Reporting changes to the employee’s job or status (including salary changes)
• Ensuring tax and labor compliance
• Terminating the sponsorship if the employee leaves

In some cases, you may be held responsible for repatriation costs or other financial penalties if the sponsorship is misused, while failure to comply with local requirements can result in fines, license suspension, or being barred from future sponsorships.

Is employer sponsorship the only way to hire from abroad?

No — sponsorship is not the only way to hire top candidates who are based in another country.

If the candidate wants to remain in their country — or you don’t want (or need) to relocate them — you have two main options:

1. Set up a legal entity in the candidate’s country
2. Use an employer of record (EOR)

Setting up a legal entity is usually an expensive, complex, and time-consuming process — especially if you’re only hiring one person in that location. But with an EOR, you can:

• Quickly and easily hire people in multiple countries without opening a local entity (often within a matter of days)
• Avoid the need for visa sponsorship (if the worker is a citizen of their own country)

Crucially, EORs also handle compliance, payroll, and other key HR functions on your behalf, while some providers — like Remote — even enable you to offer advanced benefits, including equity incentives.

Learn more: What is an EOR, and how does it work?

How can Remote help?

If you do want to relocate a team member, Remote helps simplify that process by acting as a sponsor for your employees (in select countries where we’re authorized to do so).

Our team carefully evaluates each case to ensure compliance with local immigration laws, and we offer support every step of the way — from pre-employment eligibility checks to visa guidance and employment verification.

We can help you assess what's possible, ensure compliance, and streamline the path forward. While sponsorship rules vary by country and some limitations apply, we’re here to help you make informed decisions — and unlock new opportunities for your business and your people.

To learn more about how Remote can support your global hiring goals, speak to one of our friendly experts today.