For many overseas technology companies, the UK is their first European market. The reasons usually come down to the UK having a deep talent pool, English being the universal business language, a time zone that overlaps with both the US and Asia, and an employment framework that international businesses find relatively familiar.

Why the UK Remains Europe’s Leading Destination for Technology Investment

EY’s 2026 UK Attractiveness Survey found the UK secured 155 software and IT services investment projects in 2025, ahead of France and Germany. London remains one of Europe’s leading business cities, alongside Paris, Brussels and Zurich. EY also found that UK technology investment fell 4% year on year, so growth is not guaranteed, but the lead is clear.

In EY’s 2026 Digital FDI Report, 57% of international investors said the UK outperforms rival markets for technology talent, with cities such as Manchester and Edinburgh drawing significant technology investment.

How Overseas Technology Firms Are Setting Up Their First European Teams

As we reported when Notion opened a hub office in London, the first hires in a new market are often customer-facing roles placed close to customers and partners. A small team on the ground first, with headcount growing as demand increases, is a common approach. However, this raises the question of who will legally employ those first people.

Two Routes to a First UK Hire: Your Own Entity or an Employer of Record

A UK private limited company is the most common structure. It needs at least one shareholder and one director, with no UK residency requirement for directors, plus a UK registered office address. Registration with Companies House is usually completed within 24 hours online, assuming the necessary paperwork is in order, and employing staff requires a sound understanding of PAYE, National Insurance, pension auto-enrolment and employers’ liability insurance.

The alternative is an employer of record, which acts as the legal employer while the company directs the work. Companies testing a new market can hire in the UK with GoGlobal without registering an entity first. This route suits small teams, although companies planning significant UK activity will usually move to their own entity once they find their feet.

Getting UK Employment Basics Right From the Start

Whichever route you choose, employees must receive a written statement of employment particulars, covering pay, hours, holiday and notice periods, on or before their first day. Wider policies are often set out in an employee handbook. You will also need to complete right-to-work checks before the employee starts and ensure staff keep their working time within the 48-hour weekly average unless they choose to opt out.

Getting these details right before sending any offer letters will avoid rework later. The aim is to have the first employee hired correctly from day one using a structure that can grow with the business.

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