Have you heard of Anonymous Hosting or Anonymous Offshore Hosting ? It's for the people who demand total privacy where the hosting company connect zero information from the client. There are many legitimate reason for using Anonymous Hosting like stop domain-related spam, deter identity theft & fraud, prevent harassers, stalkers & data miners etc. But having Anonymous Hosting or Anonymous Offshore Hosting doesn't mean you can commit fraud against others or commit libel online against the public or other businesses.Anonymous web hosting providers are act within the laws too.
Anonymous Offshore Hosting specially used by human rights activists and others who fight for various causes. You can protect your identity to some length but I think there are limits for that too.
Katzglobal is one popular company which provide Anonymous Offshore Hosting. They do have severs in India, Malaysia, China, Hong Kong, Singapore, Australia and the United States. While ago people used search for web providers with server locations in Sweden, Malta, Cyprus, Ukraine etc. But I don't think you can protect your self if you do something illegal wherever the server is. Also usually this kind of web hosting providers are expensive. You have to pay high price for all the privacy you receive.
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