Honda's European racing operations will be based in Milton Keynes ahead of its return to Formula One.
The Japanese manufacturer announced in May that it will re-enter the sport in 2015 as engine and energy recovery systems supplier for the McLaren team.
Honda will development and manufacture the new V6 turbo engines at its base in Japan, but it felt it was important to establish a European facility to support its racing operation.
Yasuhisa Arai, Honda's chief officer of motorsports, said: "With the confirmation of a new F1 operation base in the UK, our preparation to join F1 has become more specific and concrete.
"To meet and exceed the expectations of our fans, we will accelerate our development to bring back the unique Honda engine sound onto the track."
The company plans to begin operations in Milton Keynes in June 2014.