Bermuda.

International E-Commerce Ltd. (www.e-commerce.bm) has been set up to provide Bermuda-based merchant facilities to overseas companies. Elan has also set up a similar company in the British Virgin islands called Elan E-Commerce Ltd.

International E-Commerce Ltd. will allow companies to process their Internet sales and transactions from computer servers located in Bermuda. Mitch Leventhal, who is a consultant for the project, said Elan would advise merchants about how to structure their companies to take advantage of Internet electronic commerce.

The US for example allows some multinational companies to defer tax on overseas revenue until the money is repatriated back to the US. Large multinationals are able to use the allowance. However some of the new Internet based companies are not aware of how to structure themselves in the best manner.

"E-commerce companies are multinational and global from day one,'' he said.

"They should then organise themselves like the bricks and mortar companies.

We will provide advice about the appropriate business structure and propose a solution.'' Elan will use the services of Logic Communications Ltd. and First Atlantic Commerce Ltd. for transaction processing. Online banking services will be provided through merchant accounts with the Bank of Bermuda.

Philip Beck, a principal in the Elan Group, said the Bermuda and British Virgin Islands companies have been set up to provide a full Internet service to merchants on the Internet.

"Over the past three years, we have received increasing inquiries from companies seeking to restructure their electronic commerce operations in accord with accepted multinational practice,'' he said.