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Tech Hubs to Grow Your Business - Photo: SovTech
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As they expand their operations, technology businesses frequently engage in exploratory work and the development of new products. The vast majority of people are aware that although some customs can be questioned in order to free up new inventive ways to move forward, there are some aspects of tax legislation and local compliance that simply cannot be sidestepped.

KnowInsider investigates a selection of rising tech hubs located all around the world to determine whether or not these locations deserve the title of supportive hub for rapidly expanding technology businesses.

1. Singapore

Although Singapore is more well-known as a financial center, it has recently staked a claim in the technology sector with the establishment of regional headquarters by corporate behemoths like Facebook and Google. With subsidies, tax breaks, and other infrastructure, the government is actively supporting the growth of the IT sector. Top tech talent from across Asia is drawn to Singapore by its desirable location in a rapidly developing area.

The government offers a number of incentives to entice new businesses. Incentives include access to financial programs if recipients meet predetermined requirements. The government contributes 70% of the initial S$500,000 financing for deep tech start-ups. Additionally, they will match private investor contributions 1:1 up to a maximum investment of S$4 million.

Fast-growing IT businesses sometimes struggle with tax and accounting compliance, but Singapore has business-friendly regulations thanks to its single-tier corporate tax system, which levies taxes on both persons and corporations only on domestic profits. However, by engaging with a local tax expert, technology companies can access a variety of sector-specific tax incentives.

2. Hong Kong and the Greater Bay Area

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Photo: Brand Hong Kong

Due to Hong Kong's entrepreneurial culture, the number of new businesses increased by 18% in 2018. It is collaborating with nearby cities like Guangdong and Macau to form the Greater Bay Area as a platform for businesses looking to access China and for Chinese tech companies to internationalize. It is strengthening its strengths in biotechnology, artificial intelligence, smart cities, and financial technologies.

Since then, the Hong Kong government has launched a number of financial programs to aid SMEs in technology and innovation projects. One of them is The Greater Bay Homeland Development Fund, which gives the GBA's technology businesses a financial boost of approximately $100 billion HK.

Its efficient market has been its key draw, propelling it to fourth position in the Ease of Doing Business rankings. At 16.5%, Hong Kong has one of the lowest tax rates in the entire world. In an effort to provide tax relief for international revenue, businesses only tax income that is entirely derived in Hong Kong.

In terms of global digital competitiveness, it has risen to position eight. All of these are a result of its capacity to develop talent and educational agility. To support research and development initiatives, the government granted around 3,815 research positions in January 2019 under the Innovation and Technology Venture Fund. Tech organizations will need to collaborate with locally based businesses that are aware of the market needs and motivations of potential employees if they are to recruit top tech talent.

By handling the needs for hiring, corporate, legal, accounting, payroll, and tax administration, Hawksford has helped numerous multinational IT companies build and expand their operations in Hong Kong and China. Speak to our knowledgeable Hong Kong experts right away.

3. Shanghai

In contrast to their US counterparts, China's digital towns saw a bigger share of venture capital investment in 2018, and Shanghai's international appeal has drawn the tech-savvy from all over the world.

The Chinese government has been contributing money to a number of startups. Approximately 780 government-related start-up funds totaling $1.6 billion are being distributed nationally.

Shanghai has consistently climbed the Innovation Cities Index to claim position 35. Given the availability of high-tech industries, research infrastructure, and support for research funding, over 40% of outstanding scientists under the age of 35 would opt to work here.

It ranked third in the strength of the start-up ecosystem and is swiftly emerging as the next major IT powerhouse. Visitors holding a green card are permitted by the Master Urban Plan to establish technological companies and limited liability partnerships. But before choosing the site of your next firm, it's crucial to be aware of how working visa policies differ from city to city.

In 5 cities across mainland China, Hawksford employs both domestic and foreign expertise. We offer expert knowledge in international hiring and associated responsibilities for areas like payroll. Look into your choices right now.

4. Berlin

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Photo: Eu Startups

It's no secret that Berlin has a history of breaking the mold, and this reputation extends to the IT hub sector as well. As tech entrepreneurs search for a more inexpensive choice within Europe, the city's creative energy has been funneled towards technological innovation. Along with well-known success stories like SoundCloud, reputable organizations like Siemens have also created incubators in the area.

With 11% of start-ups coming from outside the country, Berlin rises to sixth place in terms of start-up ecosystem strength. It provides local and international business owners with state loans covering 100% of costs up to 25 million euros. Cybersecurity, technology, and digital health have all grown significantly. With more than 40 technology incubators, the German capital has been ranked as the fourteenth most innovative city.

Berlin residents will likely find the city to be very affordable, ranking 81st in Mercer Cost of Living, depending on their lifestyle. With better access to infrastructure and healthcare, Berlin ranks 13th in Mercer Quality of Living, indicating that people there have a superior quality of life.

5. London

London has a solid reputation as a tech hub thanks to its history as a hub of international commerce and finance. Research can flourish at internationally renowned universities, and easy connectivity is guaranteed by the area's proximity to Europe's busiest airport. Successful fintech start-ups like TransferWise and Funding Circle have benefited from its status as a tech hub.

In terms of the strength of its startup ecosystem, London ranks third. New companies opening in the capital can apply for a loan of up to £25,000 under the government's Start-up Loans Scheme, which has a fixed interest rate and up to 12 months of free mentoring. London is a great city for business growth due to its business-friendly regulations, which draw top talent from all over the world.

It is the world's second-most inventive city. With a potential budget of £600,000 per year, fifteen London councils recently joined forces to support 32 local boroughs in scaling up digital innovation.

According to The Economist Cost of Living Index, London is in 22nd place, so businesses will need to think carefully about where they locate their headquarters and office locations. However, London is the most accessible city in Europe and has excellent access to low-cost rail and air networks, which makes commuting a breeze.

A tech company can gain simple access to the markets in Europe, the Middle East, and Africa by incorporating and registering in London. Contact our London-based experts right away if you require professional direction on how to establish your business in the UK.

6. San Francisco/Bay Area

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Photo: Geek Wire

The largest tech companies have called this epicenter of innovation home, luring the most creative talent and business ecosystem to spur growth. Due to rising costs in the Bay Area, many professionals are choosing to relocate or work remotely. However, the significance of San Francisco-based technology will not diminish as long as it continues to have an impact on how we live, work, and eat.

The Start-up Ecosystem is led by Silicon Valley. The payroll tax exclusion for up to ten years for clean technology companies with under 100 employees is just one of many incentives available. To make sure you are taking advantage of all the incentives and benefits available to your business, it may be helpful to work with a payroll and tax specialist. With good reason, it is currently ranked as the third most innovative city. It filed about 34,000 international patents between 2011 and 2015, of which Google is responsible for 6.5%.

7. Toronto

A thriving Toronto attracts research centers in data science and artificial intelligence to open their doors because it provides an alluring combination of high living standards and affordable housing. Its diverse population, of which half are foreign-born, provides a wide range of tech talent.

Toronto is ranked 15th in terms of start-up ecosystem strength, outside the top ten. With a corporate income tax rate of just 26.5%, the Canadian government offers a very competitive environment for new businesses.

In order to support its innovation-driven economy, it takes talent into account. It is the fastest growing job market for tech positions as a result, adding about 28,900 jobs in 2017. It ranks among the top three tech talent markets in North America.

8. Bangalore

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Photo: Business Line

According to Compass, India's "garden city" has nearly $2.3 billion in investments and 4,900 active startups. Half of startup activity in India, according to Dev Khare, managing director of Lightspeed India Partners Advisors, takes place in Bangalore.

Currently, the sector creates more than 200,000 new jobs annually, employing close to 10 million people. Each year, the sector exports goods worth nearly $85 billion (£55 billion; 65 billion euros). Today, Bangalore is the center of the nation's IT industry, accounting for nearly 40% of it. Bangalore also houses the nation's IT hub, which is home to some of the best domestic and foreign technology companies. This sector, which has over 500 businesses that provide outsourcing and back-office services, brings in more than $17 billion annually. However, it no longer wants to be known as just a center for outsourcing; instead, local businesses are climbing the value chain to become global titans. Bangalore is now a center for entrepreneurship growth thanks to the talent spillover from the city's IT industry, according to the BBC. There are numerous networking groups that regularly meet in coffee shops to share ideas and provide peer support.

9. Santa Monica

Outside of Silicon Valley, a new tech hub is developing in California. Santa Monica, which borders Los Angeles, draws a large number of young people thanks to its stunning beaches, pleasant climate, and cool vibe. Young adults have moved into the area, and the city is now a significant hub for technology. The region is known as Silicon Beach and is home to a more glitzy generation of startups that are frequently associated with the entertainment and celebrity industries. Startup accelerators like Launchpad and StartEngine are situated nearby to support growth.

10. Paris

In April, Station F, the biggest tech incubator in the world, was scheduled to open. According to CBRE, the French capital is home to unicorns like ride-sharing service BlaBlaCar and is second only to London in terms of tech startups.

"The startup, which became a rare European unicorn after a funding round in 2015, was valued at $1.5 billion (£1.16 billion). A significant side effect is that the two founders are now angel investors. Even though they only make modest investments ("I am not a rich man," Mazzella said to Business Insider), the two represent a still-rare breed of young, prosperous, tech-savvy investors in France. They have invested in startups for kids' clothing like Patatam and the French parking space app Zenpark.

Why tech hubs will thrive?

As investors and tech workers tend to congregate in these select few places, entering these tech hubs can hasten the growth of your company. They have easy access to millions of tech-savvy customers thanks to their proximity to fast-growing markets like Singapore in Southeast Asia and Hong Kong in North Asia.

Although the business and regulatory climate of tech hubs frequently values and supports entrepreneurship, effective local market guidance is essential to guaranteeing that your growth trajectory in a new region will be smooth. Partnering with a corporate service provider and outsourcing your incorporation, accounting and tax, immigration, and business support needs may be advantageous for a smooth transition into a new tech hub so you can concentrate on expanding your business.

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