If you don't need a merchant account for your business you may want to look into the Seychelles with a bank account in Cyprus or the Seychelles! FYI 2co.com and MB accept companies from this jurisdiction.
You can check out the United Arab Emirates which has an offshore centre in Ras Al Khaimah (one of the states). We have clients that are running online businesses from here and it is easy to setup. We can also recommend banks such as Barclays who can provide merchant account services. Of course you could use Paypal as an option as well.