British business leaders have spoken out against US president Donald Trump’s travel ban on seven Muslim-majority countries.

The Institute of Directors (IoD) and the British Chambers of Commerce (BCC) both agreed the ban would be bad for business while Sir Martin Sorrell, the head of advertising group WPP, expressed concerns about the effect on his workers and their families and said he had an “instinctive dislike” of such measures.

Sorrell, who has offices in New York as well as London, the far east, India and Australia, said he was not aware of any immediate effect of the ban on his staff, but added: “We are concerned about the impact it may have on our people and their families both inside and outside the USA and on innocent people generally.”

The IoD also spoke out strongly against the measures introduced by Trump in an executive order that temporarily bans citizens from countries including Syria, Iran, Iraq, Yemen, Sudan, Libya and Somalia from entering the US, even if they hold valid visas or permanent residence permits.

A spokesman said: “The sudden, severe and indiscriminate restrictions imposed on passport holders from seven Muslim countries could seriously undermine business and trade.

“Both in the US and the UK, a number of industries including tech rely heavily on highly skilled brainpower from across the world. If businesses are restricted from accessing workers then many companies may have to rethink where they place their key staff in future, and that would ultimately have consequences for the prosperity of that country.

“From a British perspective this will be worrying. The prime minister has only just begun to prepare for a future trade agreement with the United States. Trade deals are built on stable rules because businesses need certainty if they are to plan for future investments and job creation.”

Adam Marshall, director general of the BCC, said many of its members had import and export businesses that relied heavily on employees being able to travel freely.

“Any kind of changes to immigration rules which mean business people cannot get around to see clients or suppliers is concerning,” Marshall said. “I want to ensure that UK-based business people and trading partners around the world don’t face untoward obstacles.”

The comments from British bosses come after US-based entrepreneurs hit out at Trump’s executive order, with some calling it immoral and un-American.

Leaders of businesses including Apple, Google, Tesla, Microsoft, Airbnb, Uber and Facebook, all of which rely on IT talent from around the world, spoke out.

The Apple chief executive, Tim Cook, sent a letter to employees saying Trump’s order was “not a policy we support”, according to Reuters. “We have reached out to the White House to explain the negative effect on our co-workers and our company,” Cook said.

Alphabet Inc, the owner of Google, which has about 100 members of staff affected by the order, urgently called back employees from overseas and told those who might be affected by the ban not to leave the US. Co-founder Sergey Brin was among those protesting against the order at San Francisco airport over the weekend.

“We’re concerned about the impact of this order and any proposals that could impose restrictions on Googlers and their families, or that could create barriers to bringing great talent to the US,” Google said in a statement.

Elon Musk, the founder of Tesla, said on Twitter that the ban was “not the best way to address the country’s challenges”.

The Airbnb co-founder and CEO, Brian Chesky, said: “Not allowing countries or refugees into America is not right and we must stand with those who are affected.”

Travis Kalanick, the boss of Uber, who has faced criticism from some employees for participating in Trump’s business advisory council, said he would raise the issue of the ban at the group’s first meeting on Friday.