for Web traders By Roger Crombie Starting this month, companies wanting to carry out e-commerce from Bermuda will be able to do so without forming a Bermuda company, registering with the Bermuda Government, or paying any Bermuda taxes at all, says Wired magazine in an article entitled "The Bermuda Triangle''.

"Just as offline corporations dodge taxes by operating separate holding companies overseas, Web merchants can now set up virtual offshore holding companies over the Net,'' says the magazine in an article about Bermuda-based e-commerce start-up EOCnet.com. The company is about to start offering a service called eSuite, an independent, legal entity that has many of the characteristics of a corporation, including the ability to issue stock.

"An eSuite costs $2,000 annually and includes an account at the Bank of Bermuda, so merchants can process credit card transactions,'' says Wired.

Visa and MasterCard issuers require merchants to set up shop wherever they process card charges. In this case, the eSuite is regarded as that `shop'.

"In short, ecommerciers who never set foot on Bermuda can base their business there,'' Wired says.

One of the key elements in Bermuda's jurisdictional sales pitch is the Island's reputation. Local service providers have traditionally been required to carry out much of the character vetting of companies applying to do business from Bermuda.

Once the service provider is satisfied as to the integrity of the applicant, the Bermuda Government, through the Bermuda Monetary Authority, carries out extensive background checks.

Granger Whitelaw, CEOof EOCnet.com, told Wired that "EOCnet.com carries out due diligence to ensure clients are not laundering money or engaging in activities that are illegal in Bermuda (such as dealing in pornography)''.

Mr. Whitelaw told the magazine that "his venture was not established as a tax haven, but acknowledges that Internet taxes elsewhere will be good for his bottom line. In his words, EOCnet.com gives `clarity to ecommerce' and `levels the playing field'.'' Explaining how eSuite works, Wired says: "For example, because of government regulations, etailers in Germany cannot offer buying incentives on their Web sites. But a German company's eSuite can, as there are no such regulations in Bermuda''.

BUSINESS BUC