I am looking to form a new division of my American based electronics
distribution/resale business in the UK. I have heard that the best way
to structure this venture is by forming a separate holding company (in
the UK) to hold the majority of shares in the new venture. Please list
the positive & negative aspects of this approach. Please make sure
that all information presented is UK specific. Any answer must stay
within the bounds & spirit of UK law. I'm looking forward to your
answer.

Company registrations in the UK are handled by Companies House
www.companieshouse.gov.uk

You will need to decide in which jurisdiction you wish your company to
be based, as England and Wales, and Scotland, are separate
jurisdictions. There is little practical difference as company and
taxation law is pretty much identical throughout the UK.

Owain

The best way to trade in the UK is undoubtedly through a UK registered company.
Are the shares to be owned directly by you, or by your US company? I
suggest the latter. My firm acts for a number of UK companies owned by
overseas parent companies. Our web site is
http://www.daviesmclennon.co.uk

The UK company pays UK corporation tax on its profits at 19% on the
first £150,000 (assuming there are just two companies, the US co. and
the UK co)Thereafter the rate is 32.5% up to £500,000, and from then
on 30% on all profits over this amount. The "after tax" profit can be
distributed up to the US parent.