When the Home Office processes your sponsor licence application, it will make one of three choices: it will grant you the sponsor licence, reject your application, or refuse your application.
However, there is an important distinction to be made between the refusal of a sponsor licence application, and the rejection of one. The latter usually happens due to the application simply being invalid, which normally arises from relatively minor issues with the application that the applicant can rectify. An application might be rejected, for example, due to the incorrect application fee having been paid, or important documents not having been provided.
If, on the other hand, you see your application for a sponsor licence refused, this is likely to be due to a much more fundamental problem with the application. For example, UKVI might not be convinced that your firm’s present human resources (HR) and recruitment practices are adequate to enable you to fulfil your responsibilities as a sponsor.
The distinction between sponsor licence application refusal and rejection is important from a practical standpoint. If your application is merely rejected, you can usually expect the Home Office to refund your application fee, so that you can then submit a new, modified application. Your application fee will not be refunded, however, following a sponsor licence application refusal.