Visa Sponsorship Explained: Global Employer Guide

Visa sponsorship is how you, as an employer, enable foreign candidates to work legally in your country. Companies “sponsor” an employee’s work visa by applying on their behalf and vouching for them with immigration authorities.

This matters because many work and residency visas (like the US H-1B or UK Skilled Worker visa) require a sponsoring employer to prove the job couldn’t be filled by a local worker and that the candidate meets specific criteria. By sponsoring visas, you tap into global talent beyond local labor markets, which can boost innovation, diversity, and your competitive edge.

What is visa sponsorship?

Visa sponsorship means your organization takes responsibility for an employee’s work visa application. In practical terms, you formally agree to support the applicant (often through local immigration authorities) so they can legally live and work in a country.

As a sponsor, you will typically need to file paperwork on their behalf – such as labor market certifications, visa petition forms, and letters of support – and meet any country-specific requirements (like minimum salaries or qualifications).

For employers, sponsorship unlocks global hiring. It lets your business recruit specialists or high-potential workers who aren’t available locally, which can improve innovation and market insight. It also helps you retain ambitious talent: workers often prefer employers willing to sponsor visas or green cards.

Vice versa, if a company cannot sponsor visas (for example, lacking an entity in that country), you risk losing top candidates to competitors who can handle relocation.

However, sponsorship carries obligations. If you obtain a visa on an employee’s behalf, you must comply with ongoing immigration rules. This means tracking visa expiry dates, reporting any job changes, and ensuring you continue to meet visa conditions. Failure to do so can incur penalties or even strip you of your sponsorship privileges.

In short, visa sponsorship is essential to hire from the international talent pool, but it demands careful planning and legal compliance.

Visa sponsorship options for employers

As an employer, you generally have three main routes to sponsor an employee’s visa: your own company sponsorship, third-party visa and immigration support (if you have a license), or Employer of Record visa sponsorship. The right choice depends on your business structure and needs.

Here's how each route works:

• Company-owned sponsor license (self-managed sponsorship): You set up or use an existing legal entity in the target country and apply directly for a government sponsorship license (if required by that country). For example, a UK company must apply for a Skilled Worker sponsor license with the Home Office. Once licensed, you assign a Certificate of Sponsorship (CoS) for each new hire, handle the visa application forms, and maintain records. This direct approach gives you full control of the process and often lowers long-term costs if you plan to hire many people. However, it requires meeting all local requirements (financial solvency, office presence, etc.) and handling complex compliance obligations
• Third-party support for licensed sponsors (with an immigration provider like Deel): If you already have the legal license to sponsor visas but want help, Deel’s immigration services can assist with the details. Deel’s experts prepare and file the necessary documents (petitions, evidence, etc.) on your behalf. You still pay government fees and hold the license, but Deel streamlines the paperwork and ensures deadlines are met. This is ideal if your company is ready to sponsor visas but lacks internal immigration expertise
• Employer of Record (EOR) visa sponsorship (with an EOR like Deel): If your company does not have a local entity or you prefer a “hands-off” solution, Deel EOR can employ your worker in that country. Deel’s local branch then sponsors the visa. For example, Deel’s EOR becomes the legal employer, paying salary and benefits, while you contract with your employee. This lets you access work visas even in countries where you have no presence. It’s faster to launch (no license needed) and reduces compliance burden

Utilities like eligibility checks and platform support exist for all routes. Before deciding, check any country-specific restrictions (some countries require local audits, minimum hire counts, etc.). Use the table below to compare at a glance:

See also: Employee Mobility Services: Easy Relocations for International Companies

How Deel streamlines visa sponsorship

Deel’s immigration platform is built to simplify each visa pathway. Key features include:

• Automated eligibility screening: With just a few clicks, Deel’s visa eligibility checker evaluates a candidate against various visa criteria (education, salary, country restrictions) to flag any issues early. This 24/7 screening lets you know upfront if a candidate qualifies for the intended visa before extending an offer
• Secure document management: Deel provides a portal to upload all required paperwork (contracts, degrees, passport scans, sponsor letters) in one place. You and the employee can track which forms are complete. This reduces lost documents and manual follow-up
• Step-by-step guidance and tracking: The platform breaks the process into clear steps (e.g. labor application, petition filing, interview scheduling). Both HR and the employee can monitor progress in real time. Deel’s immigration specialists proactively handle requests for evidence or government updates, so nothing falls through the cracks
• Expert support: Deel has in-house immigration experts who stay on top of changing rules. They personalize the application strategy to each country’s rules. For example, Deel’s team advises on which visa sub-category to pick or how to structure a salary package to meet local minimums. This hands-on help means most applications get filed correctly the first time
• High success rate: Deel reports that the vast majority of its managed visa petitions are approved. With a 98% visa approval success rate, Deel’s thorough preparation significantly increases your chances compared to a DIY approach
• Integrated relocation services: Beyond visas, Deel offers support for relocation. This includes discounted partner rates on flights, shipping household goods, temporary housing services, and even family visa applications. These extras make the onboarding smoother for employees and allow you to offer a competitive relocation package

By consolidating these tools in one platform, Deel turns a traditionally months-long paperwork project into a more transparent, efficient workflow. You still approve each step, but Deel does the heavy lifting in the background. For example, instead of separately emailing paperwork to multiple parties, everything flows through the Deel web portal with status updates.

HR teams routinely report that using Deel cuts down administrative work and avoids delays.

How to choose the right pathway

Deciding between sponsoring the visa yourself or going through an EOR depends on key factors:

• Legal presence: Does your company already have a local entity (branch or subsidiary) in the target country? If yes, direct sponsorship might be feasible and cost-effective. If no, EOR is often the only quick solution
• Volume of hires: Will you be hiring multiple people in that country regularly? If you expect many hires over time, getting your own license could pay off despite the setup cost. If it’s just one or a few, an EOR is simpler
• Control vs. convenience: Direct sponsorship gives you full control (you set contracts and benefits) but also all compliance obligations. EOR means Deel handles employment, payroll, and legal compliance – you essentially “rent” the local entity. Many startups and small businesses prefer EOR to avoid the compliance burden. Larger enterprises sometimes use a hybrid model: they maintain a license for critical roles at headquarters, while using EORs for satellite offices
• Cost considerations: Sponsoring yourself typically requires paying for sponsorship licenses, enrollment costs, plus visas and renewals. With an EOR, you pay a monthly fee per employee to Deel that covers most of those costs. Review quotes carefully: in some countries, high government fees (e.g., premium processing) can make an EOR surprisingly cost-effective. We’ve included a cost comparison below to illustrate typical charges
• Time sensitivity: If you need someone on-site quickly, an EOR can often start sooner (no license application delays). If you have more lead time (e.g., planning months in advance), you may opt to get licensed

The table below compares the broad trade-offs:

No single formula fits every company. Often, the decision comes down to speed and comfort with paperwork. For example, a tech startup with no foreign entity and an urgent need might start with Deel’s EOR option. If it later opens an office, it could switch to in-house sponsorship.

Step-by-step process

Below is a general outline of the steps you’ll take under each pathway. Always check the exact requirements in the target country as you go.

Direct sponsorship (your own license):

1. Determine visa category: Identify the correct visa based on the role and country. Check any job and salary thresholds.
2. Check candidate eligibility: Verify that the employee’s qualifications, degrees, and experience meet the visa criteria. Ensure they can meet language or other prerequisites.
3. Apply for (or maintain) sponsor license: If not already a licensed sponsor, apply with the local immigration authority. Prepare supporting docs (financials, proof of legitimate business). Wait for approval (this may take weeks).
4. Assign sponsorship certificate: Once licensed, issue the official sponsorship. This includes inputting details into the government system and paying any assignment fees.
5. Submit labor validation: Complete any required labor market test. For example, after advertising the role per local rules, file a US Labor Condition Application (LCA) or a Canadian LMIA petition.
6. Prepare and file application: Gather all required documents (employment contract, visa questionnaire, business registration, candidate’s passport/education documents). File the visa petition and pay government processing fees.
7. Employee applies for visa: After the petition is approved, the worker submits their visa application (often at an embassy/consulate), including biometrics and interviews if needed. Provide them with the necessary invitation letter or CoS reference.
8. Receive approval and onboard: Once the visa is granted, the employee can travel and start working. Register them locally (immigration office, tax authorities) as required.
9. Ongoing compliance: Monitor visa expiration and renewals. Report any significant employment changes to the authorities. Maintain records of all sponsored employees.

Using Deel’s EOR sponsorship:

1. Engage Deel and candidate: Provide Deel with the candidate’s details and basic role info. Deel will prepare an EOR employment contract through its local entity. You (the employer) then review and sign the service agreement with Deel.
2. Deel issues a job offer: Deel’s local branch formally offers employment to the candidate. The candidate’s documents (CV, IDs, qualifications) are sent to Deel’s immigration team.
3. Deel obtains sponsorship: Deel’s specialists apply for the required visa authorization (assign CoS, file a petition, or permit) on the employee’s behalf. You simply provide any requested business information.
4. Fee payment: Deel sends you an invoice for its visa services (one-time application fee plus any legal costs), which you pay to initiate processing.
5. Track application: Once submitted, your HR team can track application status via Deel’s platform. Deel handles all communication with immigration authorities.
6. Visa approval and start: When the visa is approved and issued, the worker travels (if relocation) and begins work. Deel takes full responsibility for payroll, taxes, benefits, and compliance in the country. You receive periodic updates and other support through Deel’s system.

If using hybrid (Direct + Deel): Follow the above direct steps in countries where you have an entity, and use the EOR steps where you don’t. For example, you might self-sponsor employees to your main office and use Deel for remote or rotating employees to other countries.

See also: EOR-Sponsored Visas: A Guide for Enterprise Businesses

Costs, timelines, and common pitfalls

Costs:

To give you an idea of the potential expenses, we’ve provided example cost breakdowns for US (H-1B) and UK (Skilled Worker) visas.

United States – H-1B Visa

• Filing fees vary based on company size and whether it’s a new petition, renewal, or transfer
• Example (initial filing for 26+ employees): $3,380 total (includes government filing, ACWIA, anti-fraud, and asylum program fees)
• Smaller companies (≤25 employees) pay lower fees, e.g. $2,010 total
• Extensions are slightly cheaper (no anti-fraud fee)
• H-1B lottery registration: $215 per candidate, plus potential legal fees if handled via a third-party

United Kingdom – Skilled Worker Visa

• Certificate of Sponsorship: £525
• Immigration Skills Charge: £364–£1,000 depending on sponsor size and duration
• Application fee: £769–£1,751 per person (varies by location and role)
• Immigration health surcharge: £1,035 per person per year
• Additional optional costs: Ecctis certification, priority/super-priority processing, or priority license processing for sponsors

Note: Exact fees depend on factors such as company size, role type, location, and whether the application is new or a renewal. Deel helps by providing clear quotes and consolidating many fees into its service pricing.

Timelines:

Timing can also be unpredictable. In many countries, processing can take weeks or months unless you pay extra for speed. For example, the USCIS’s regular processing of an H-1B petition can take 3–6+ months; premium processing guarantees a response in 15 calendar days.

In the UK, sponsor license applications often take 8–10 weeks, though you can pay £500 for a “priority” 10-working-day review.

Skilled Worker visa applications can take 3–4 weeks under normal processing, longer if additional checks are needed.

Always check the current processing targets on government sites before committing to a start date. Delays often happen due to missing documents or requests for more information, which is why Deel’s checklist and follow-up are valuable.

Common pitfalls:

• Underestimating requirements: Many employers run into trouble by assuming visa rules are simple. In reality, each country has detailed criteria. For example, if you miscalculate the prevailing wage for the US LCA or ignore a UK skill code requirement, the visa can be refused. Always use official guidelines (e.g., USCIS or Home Office eligibility pages) or expert consultants to confirm criteria
• Non-compliance: Forgetting to report changes is a serious risk. If your employee is promoted or leaves their role, or if you change their salary, you must update immigration authorities. Falling out of status can lead to fines or revoke your sponsoring rights. Some governments audit sponsors annually. Deel’s compliance reminders and support help prevent these issues
• Cost surprises: Employers sometimes neglect hidden fees. For example, in the UK both the sponsor and the employee must pay the Immigration Health Surcharge (about £1,035 per year). Premium processing or urgent travel can add thousands more on short notice
• Timing mistakes: Applying too late in the cycle can derail hiring. In the US H-1B cap system, for instance, applications have strict annual windows. Missing deadlines can mean waiting a year. Plan well ahead and consider gap solutions (like remote work) while waiting on approvals
• Overpromising candidates: If you hire someone expecting their visa to be quick, and it’s delayed or denied, your project can stall. Mitigate this by vetting eligibility carefully (Deel’s eligibility checks help) and discussing contingencies with your candidates

By being aware of these factors and leveraging Deel’s compliance expertise, you can avoid the most common headaches of visa sponsorship.