Founded in Germany in 1896 by the Carl Lindstrom Company (the ₤ trademark is not the British pound sign but a German L for Lindstrom).

In 1923, the British branch of Parlophone was established, led by Oscar Preuss as A&R manager. Parlophone established a master leasing arrangement with co-owned US-based Okeh Records.

In 1927, Columbia Graphophone Company of the UK acquired a controlling interest in the Carl Lindstrom Company and thereby in Parlophone.

In 1931, Columbia merged with the Gramophone Company to form EMI. Under EMI, Parlophone initially released mainly spoken-word and novelty/comedy label material.

Preuss was succeeded by George Martin in 1955 and Parlophone's fortunes began to rise in 1962 when Martin signed a rising new Liverpool pop band, the Beatles, who soon turned Parlophone into one of the world's most famous and sought-after record labels.