The parent company for the image and video-based social app, Snap Inc, retains its global headquarters in Venice, California, but has changed the way it operates in London.
It plans to bill advertising revenue generated in the UK and some other countries through a UK-registered entity, meaning it will pay tax in the UK, something it believes is "part of being a good local partner as we grow our business".
Mayor of London Sadiq Khan welcomed the move, stating on Twitter that it is "another sign that #LondonIsOpen to talent".
Snap's decision to use its London office in this way has bucked the trend for tech companies to choose Ireland or other European countries as bases for offices, due to favourable tax incentives.
The firm rebranded to Snap after the launch of Spectacles - glasses that record first-person video that can be shared with friends via Snapchat. At present, they are only available in the US.