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Senior Content Manager
Content specialist in office design and build.
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As a US-based company, expanding into the UK opens the door to significant opportunities. It’s one of the world’s most dynamic and strategically important markets. But making the move isn’t simple.
Navigating UK regulations, employment laws and tax structures requires careful planning. But one area that causes the costliest mistakes for US companies is real estate strategy. The location you choose and lease terms you agree to can shape the success of your expansion.
We’ve supported many US businesses navigating the UK office market. In this article, we’ll provide insights into the office search and fit out process, including the different UK locations and what you need to know about UK office space.
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Setting up a UK entity: the basics
Before we delve into how to open a branch in the UK from the US, you need to decide whether a branch is actually what you need. This comes down to the distinction between branch vs subsidiary in the UK – affecting how your business operates legally:
- A branch is an extension of your US company. It’s easier to set up but the parent company remains liable for debts and obligations in the UK.
- A subsidiary creates a Private Limited Company which is a separate legal entity. Liability is ring-fenced, making it the preferred route for companies planning long-term operations.
To register a subsidiary, you’ll need to set up a UK Limited Company through Companies House. It’s a bit different to an LLC in the US. UK Limited Companies have stricter filing and reporting obligations. Your Ltd will also be subject to UK corporation tax on profits, which could differ significantly to how your LLC is treated in the US.
For more of a deep dive into UK corporation tax, PwC has put together a pretty comprehensive guide.
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Choosing your UK base: Where to set up your office
Your choice of location is pivotal in terms of costs, talent access and even time-zone alignment. Setting up an office in London is the obvious choice for a US company. You benefit from the best transport links, plus a deep and diverse talent pool. But naturally, it’s the most expensive part of the country – with prime rents exceeding £100 per sq ft in most parts of the capital.
Elsewhere, you have major hubs like Birmingham, Manchester and Leeds. Each has their own great transport links and wide talent pool with multiple universities. Naturally, this can’t compete with London, but it does come at a lower cost. Prime headline rents in Birmingham city centre stand at less than £50 per sq ft, for example. It also means you’re not in direct competition for talent with other companies established in the capital.
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Of course, there are a host of other great cities across the UK, all with their own unique selling points when it comes to setting up an office there. In recent years, several of those cities, including Cambridge, Oxford, and Bristol, have seen headline rents hit record highs — driven largely by the demand for buildings with strong ESG credentials, amenity provision, and proximity to transport links. You can take a deeper dive into these additional options in our article on the cost of UK office space.
Finally, there’s the time-zone consideration. While all of the UK operates in the same time zone, you’ll find that London’s business ecosystem is more familiar with bridging the gap between the US and Europe. Many of the city’s law practices, financial institutions and professional services are accustomed to coordinating with US clients and HQs. That includes starting earlier and finishing later to maximise overlap with US schedules.
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Best locations in London by sector
If you’ve decided on the capital, there are some stand-out options depending on your sector. We’ve summarised these below:
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Tech: Shoreditch, Old Street & King’s Cross
- King’s Cross – This part of London is a magnet for global tech brands. It’s home to Google’s UK HQ, plus Meta and DeepMind.
- Shoreditch & Old Street – Also known as the “Silicon Roundabout”, this area is London’s original tech cluster. You’ll find start-ups, scale-ups and more. In particular, Google Campus and Tech Nation have put this area on the map.
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Finance: The City & Canary Wharf
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- The City – The “Square Mile” is London’s world-renowned financial centre. There are countless headquarters for global investment banks, insurers, accountancy firms and legal firms here. That includes Goldman Sachs, Bloomberg and Lloyd’s of London.
- Canary Wharf – You’ll also see lots of large banks and professional services firms in Canary Wharf. Citigroup, Barclays, HSBC and JP Morgan are all located here, along with some newer fintech and sustainable finance brands.
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Creative: Soho & Fitzrovia
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- Soho – Soho is the creative heart of London, attracting film, TV, advertising and music companies. Big names include Sony Music, 20th Century Studios and a number of high-end production houses.
- Fitzrovia – Close to Soho but with a little more space. Fitzrovia hosts media firms, design studios and digital marketing agencies, including the BBC’s iconic Broadcasting House.
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Life Sciences: White City, Paddington & the Cambridge corridor
- White City – An emerging cluster thanks to Imperial College’s innovation campus. White City attracts biotech start-ups, scale-ups and pharma R&D companies.
- Paddington – With close proximity to St Mary’s Hospital, the Paddington area is a great option for healthcare and medtech firms such as GE Healthcare and Vertex.
- Cambridge Corridor – Let’s not forget the “Golden Triangle” between London, Oxford and Cambridge, accessed via King’s Cross St Pancras. It’s home to AstraZeneca, GSK’s R&D hubs and world-leading university spin-outs.
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Understanding UK office space: What US companies need to know
Here’s a quick rundown of the different factors to consider when choosing your UK office space for a US company.
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Types of space
There are four main types of space to choose from:
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- Leased offices – This is your traditional long-term lease directly with a landlord. It offers greater control and potential for customisation, but more responsibility for fit out and running costs.
- Serviced offices – These are fully fitted, all-inclusive and often with flexible terms. They’re ideal for quick entry, smaller teams or pilot operations.
- Managed offices – Managed offices give you customised space with services provided by a management company, usually for 3-5 year terms.
- Sublets – Subletting refers to renting part of an existing tenant’s space. It can offer short-term flexibility, but often less control over terms.
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Lease structures
Next, you have a choice of lease structures:
- Short-term – Leases of between 1-3 years offer flexibility, which is ideal for fast-growing businesses or pilot operations.
- Long-term – Longer leases of 5-15+ years provide stability and potentially lower rent per square foot.
- Security of tenure – UK law can provide tenants protection to renew leases, but only if the lease is structured accordingly.
- Flexibility – Break clauses, shared occupancy or co-working agreements add adaptability, which is important for fast-growing or uncertain teams.
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The Guide to Office Fit Out
For more information on each step involved in the office fit out process, timelines and costs, take a look at our comprehensive guide.
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Fit out categories
Below, we’ll discuss the three types of fit outs available, including what to expect and how long they take.
Cat A
A Cat A fit out provides the basic infrastructure you need for a functional office space. This includes lighting, air conditioning, toilets and raised access flooring. It typically takes 4-8 weeks, depending on the size of your space and ensures compliance with building regulations and safety standards.
Cat B
A Cat B fit out transforms the space into a fully functional, branded environment, which is tailored to your specific needs. It comprises partitions, furniture, branded décor, kitchen areas, floor finishes and specialist facilities. This typically takes 8-16 weeks.
Cat A+
Cat A+ sits between the two options above and is often referred to as Plug and Play space. It creates a functional office that you can move into immediately and begin working, with only minimal adjustments needed. This type of fit out includes furniture, workstations, fitted kitchens, meeting rooms and IT infrastructure. The timespan is usually 6-12 weeks, with costs varying heavily on the level of customisation as well as the size of the space.
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Who’s involved in a fit out?
You’ll deal with a lot of different parties during the fit out process. These include:
- Landlords who provide the space, deliver Cat A works and sometimes need to approve designs.
- Commercial agents who advise on lease terms, rent and market availability.
- Project managers who coordinate schedules, contractors and budgets to keep everything on track.
- Designers and architects who create layouts, interior designs and branding elements.
- Local authorities who ensure compliance with UK building regulations, fire safety and planning requirements.
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Office fit out specialists can make the process a lot simpler, acting as a single point of contact and guiding the process from end to end – from design and procurement to compliance and move-in. It can simplify communication with landlords, authorities and contractors to reduce risk for your company and keep timelines on track, which is especially valuable if you’re unfamiliar with UK practices.
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The office search & fit out process (step-by-step)
Below, we’ve put together a high level list of steps you’ll likely encounter during the search and fit out process. Before diving into these, it’s useful to set expectations. This process typically spans several months and involves multiple stakeholders, from landlords and agents to designers and local authorities. Understanding the sequence helps you plan timelines, budgets and responsibilities more effectively.
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Step 1: Define your brief
The first step is to assess your requirements. Define how your UK office will support your business goals and hybrid policy — then turn this into a clear brief. This includes the headcount for your UK office space (more on this later), whether you’ll be operating a hybrid working model, and your growth forecasts for the coming years.
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Step 2: Search and shortlist
With your brief in place, you can start identifying suitable office spaces. Speak to commercial agents to filter options by location, size and budget. Shortlist spaces that meet your criteria and schedule viewings to assess layouts, accessibility and alignment with your company culture.
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Step 3: Negotiate lease and Heads of Terms
After shortlisting, negotiate the lease and Heads of Terms — a summary of rent, lease length, break clauses and service charges. UK leases are usually longer and place more responsibility on tenants than US leases, so focus on rent reviews, break clauses and tenant obligations.
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Step 4: Design and approvals
With the lease agreed, finalise your office design and secure necessary approvals. This may include planning permission and compliance with fire and accessibility regulations — with additional requirements for listed or historic buildings. We’ve seen US firms underestimate planning approval timelines in listed London buildings, which can cause significant delays to the project schedule
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Step 5: Fit out and move-in
Once approvals are secured, execute your fit out. Plan the timeline carefully, breaking the work into stages — from construction and IT installation to furniture and branding. Coordinate all suppliers and contractors to keep the project on schedule. After completion, you’ll need to perform final checks for compliance, safety and functionality before moving your team in.
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Common mistakes US companies make (and how to avoid them)
Underestimating fit out complexity
An office fit out in the UK requires more than just construction. There are regulatory hurdles like planning permission and building regulations, not to mention multiple stakeholders being involved in the process. That includes landlords, local authorities, contractors and designers.
You might also experience delays in materials, specialist contractors or approvals which can impact your move-in date.
To avoid and account for these challenges, it’s important to plan the project carefully with clear phases, include contingency time in your schedule and engage a fit out specialist at an early stage.
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Choosing the wrong lease length or type
Getting the length of your lease wrong is another common mistake for US companies. Committing to a 10-15 year lease without any certainty of growth can limit your flexibility or lock in high costs that you’re not prepared for. On the other hand, a lease that’s too short could result in higher rent costs or make it difficult to negotiate favourable terms.
As for the type of lease, you could misunderstand tenant obligations or confuse branch and subsidiary leases, which could lead to unexpected costs or hassle further down the line.
Working with a real estate agent or lawyer experienced in US-UK cross-border leases can help you avoid these pitfalls.
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Not planning for local compliance needs
The UK has a reputation for red tape, which US companies often underestimate. Building regulations, accessibility standards, planning permissions and fire safety requirements can all impact your expansion timeline and add to the cost.
Engaging fit out specialists and legal advisors early on can ensure you allow time for compliance and avoid unexpected delays.
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Underinvesting in hybrid workspace needs
Compared to the US, the UK typically has smaller office footprints, higher occupancy costs and limited availability of flexible office space. All of this means you need to put hybrid working at the forefront of your plans. Leaving it as an afterthought can lead to underused desks, insufficient collaboration zones and significant technology gaps.
To avoid this, ensure you plan your office capacity around in-office attendance rather than total headcount. Invest in technology that enables hybrid teams to work efficiently, such as AV equipment and booking systems. Above all else, design flexible spaces that support both focused work and collaboration.
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How to open a branch in the UK from the US: a summary
Expanding into the UK gives US companies access to a dynamic market, but careful planning is a must — particularly when it comes to real estate. Choosing the right location, lease terms and office fit out strategy can make or break a US business expansion to the UK.
London offers unrivalled talent and transport links at a premium, plus specific sector clusters for the likes of tech, finance, life sciences and creatives. Other UK cities provide a competitive talent pool at a lower cost.
When you’re selecting the right office space, consider the type, lease structure and fit out category. Fit outs are particularly complex because they involve landlords, agents, designers, project managers and local authorities.
Getting the right guidance from an early stage can help you avoid pitfalls like choosing the wrong lease, neglecting compliance and failing to plan for hybrid working.
Above all else, remember that UK expansion is within reach with the right workspace strategy. All of the information above is intended to help with the process, not scare you away from the opportunity.
For further guidance, book a UK workplace consultation with our team.
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Get in touch
Speak to our market experts about your upcoming UK project
020 7553 9500
info@oktra.co.uk
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