A UK Sponsorship Licence is required by employers who wish to hire skilled workers from outside the UK and the European Economic Area (EEA). Obtaining a Sponsorship Licence involves a rigorous application process, including demonstrating the company's legitimacy, adhering to immigration compliance, and maintaining records of sponsored employees. Once granted, the licence allows employers to issue Certificates of Sponsorship to prospective employees, enabling them to apply for work visas. Employers must comply with ongoing sponsorship duties to retain their licence.