Technology Voucher” Eliminates Cumulative Funding Limit

Cancellation of Cumulative Funding Limit for Technology Voucher

The Innovation and Technology Bureau has relaxed restrictions related to relevant institutions under the Technology Voucher program since August 14, 2020. Relevant institutions (i.e., enterprises/organizations established under different legal entities but with 30% or more ownership held separately by the same individuals) will no longer be considered as the same institution for the calculation of cumulative funding under the Technology Voucher. Under the new measures, enterprises with individual shareholders holding 30% or more ownership will have to calculate the funding amount collectively, and the maximum cumulative funding limit of HKD 600,000 is immediately canceled.

In simple terms, under the new measures, the Technology Voucher program can provide HKD 600,000 in funding for each eligible enterprise. We have promptly shared this good news with our Technology Voucher funding program clients and have received inquiries from many business owners looking to apply for Technology Vouchers for their other companies. In fact, technology solutions, from corporate management to digital marketing and automation processes, have become essential in systematic management, especially in the digital business era, and are one of the competitive factors for businesses. With Technology Voucher funding, where the government funds 75% of the project cost and enterprises only need to bear 25%, the investment cost is highly cost-effective.

Upgrading Technology Solutions for Small and Medium Enterprises

To learn more about Technology Vouchers, here is a list of popular technology voucher programs for small and medium enterprises:

For business owners with multiple investments, an increase in Technology Voucher funding is good news. However, the difficulty of applying for Technology Vouchers remains. If the requirements of the program are not met during the application, procurement, and execution of Technology Vouchers, the funding may still seem out of reach.

For example, the Technology Voucher procurement process has standard requirements, including providing sufficient quotations based on project costs. For small and medium-sized enterprises without IT departments, everything from writing quotations to selecting the most suitable suppliers can be challenging. Having Technology Voucher consultants with specialized IT knowledge can help understand the required solutions for their own businesses, effectively utilize the Technology Voucher program, and successfully secure funding for upgrades.

For more information about TVP Technology Vouchers, contact our TVP Technology Voucher consultants at (+852 2129 0104) for a free case assessment.

Latest in 2022: BUD Application Assistance

Update December 2022: BUD Enterprise Support Program

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How to Apply for BUD?

Companies applying for BUD should fill out the application form online and provide the following documents for the applying company:

(i) A copy of the business registration certificate.
(ii) Copies of documents demonstrating the personal information of the responsible person/shareholder holding 30% or more ownership, such as Business Registration Department Form 1(a) or Annual Return Form (Form AR1) from the Companies Registry, etc.
(iii) Copies of documents proving that the applying company has substantial business operations in Hong Kong (please refer to Annex II for examples of proof).
(iv) Copies of documents proving the applying company’s annual turnover for the previous year (applying companies established in the current year are not required to provide this).
(v) Copies of documents proving the direct investment relationship between the applying company and the market business unit responsible for project execution in Free Trade Agreement markets, such as valid business licenses, valid contract for processing materials signed by both parties, etc. (only applicable to applications involving project execution by market units in Free Trade Agreement markets).
(vi) Brochures/print materials introducing the business/products/services of the applying company.

Is there a deadline for applying for the “BUD Special Fund”?

Currently, the “BUD Special Fund” accepts applications throughout the year, but the application deadline is subject to the availability of funds.

Can a company apply for funding for another project before completing one?

Companies can consider applying for funding for another project before completing one, as long as they do not exceed the approved number of projects (40) and the cumulative funding limit (HKD 6 million). However, they must provide information about the previously approved projects on the application form, including the project name, funding amount, and duration.

Applying companies should be aware that the progress or performance of previously approved projects may affect the approval of new project applications. The Program Management Committee will also consider the company’s capacity to manage multiple projects simultaneously, as well as the relevance and effectiveness of the projects.

What eligibility criteria do applying companies need to meet?

Companies applying for funding from the “BUD Special Fund” must meet the following eligibility criteria:

(a) Registered under the Business Registration Ordinance (Chapter 310) in Hong Kong,
(b) Non-listed companies, and
(c) Have substantial business operations within Hong Kong.

Substantial business operations refer to genuine business activities and transactions, including factors such as whether the company employs staff in Hong Kong, pays taxes, or engages in product/service transactions. Please note that companies with no substantial business or shell companies will not be considered to have substantial business operations in Hong Kong. When submitting the application form, provide the following documents as evidence:

(a) Company employee records,
(b) Company financial report records, and
(c) Records of business transactions and operations of the company.

(For detailed information on submitting documents related to substantial business operations, please refer to the “Application Guidelines.”)

Can a Hong Kong company under the umbrella of a Hong Kong or overseas listed company (non-listed) apply for funding?

Companies that are subsidiaries of listed companies, whether in Hong Kong or overseas, are considered separate legal entities from their parent companies. Therefore, as long as the subsidiary company in Hong Kong and overseas is a non-listed company, registered in Hong Kong under the Business Registration Ordinance (Chapter 310), and has substantial business operations within Hong Kong, it qualifies for applying for funding. The program is not limited to small and medium-sized enterprises (SMEs); any non-listed company registered in Hong Kong under the Business Registration Ordinance and with substantial business operations in Hong Kong is eligible to apply.

If a company is a registered listed company in mainland China, and its subsidiary is a non-listed company registered in Hong Kong, and the subsidiary in Hong Kong applies for funding under the program, but the project is implemented by the mainland China-based company (a listed company), is this feasible?

If the funded project is executed and benefits a company listed in mainland China, the funding application will not be approved.

Can eligible companies apply for funding for projects that are entirely implemented in Hong Kong?

If the project is entirely implemented in Hong Kong, it must be aimed at assisting the company in expanding and developing its business in mainland China in order to be eligible for funding.

In the project application form submitted, the company must demonstrate how the project will enhance its competitiveness in mainland China and/or promote the development of its business in mainland China through the relevant project.

Do funded projects require supervision? What are the supervisory measures?

To ensure the effective implementation of funded projects, approved projects are required to comply with the requirements stipulated by the “BUD Special Fund” during the implementation process. These requirements include:

The applying company needs to sign a designated contract with the implementing organization.

The company must provide its bank account for project fund management, and the financial transactions related to the project must undergo third-party financial auditing.

The company must submit midterm/final reports and audited accounts based on the project duration.

The implementing organization may also arrange on-site inspections for individual projects (approximately one day) to assess the progress and effectiveness of the project.

(Detailed requirements for submitting reports and audited accounts are provided in the “Application Guidelines.”)

6 Things You Need to Know Before Hiring a Government Funding Consultant for Your Technology Voucher Application

bryan

The government currently offers various subsidy programs, such as Technology Voucher Program, BUD (Business Development Fund), and SME Market Promotion Fund, to assist small and medium-sized enterprises in promoting their businesses. However, the conditions and subsidy amounts for each program are different. You can choose which subsidy to apply for based on your current business situation and needs. Let us tell you the “Top 6 Things You Need to Know Before Seeking Government Subsidy Consultation.”

1. Understand the subsidies you can apply for

The government currently offers multiple subsidy programs to assist businesses in promoting various activities, especially small and medium-sized enterprises. However, the conditions and subsidy amounts vary for each program. You can choose which subsidy to apply for based on your current business situation and needs.

Here are some popular funding and subsidy programs in Hong Kong:

Government funding programsFunding programs and their contentThe highest cumulative funding amountFunding percentage
TVP – Technology Voucher ProgrammeThe program was launched in November 2016, providing funding to businesses for the purchase of technology services and solutions. Its goal is to assist Hong Kong businesses or organizations in enhancing overall productivity, improving service quality, and undergoing business transformation.HKD$ 600,00075%
BUD Special Fund BUDThe BUD program includes Mainland China initiatives and Free Trade Agreement initiatives. Through funding, it supports projects aimed at developing brands, upgrading and transforming, or expanding into the Mainland China and Free Trade Agreement economies. This is to enhance the competitiveness of Hong Kong’s small and medium-sized enterprises in the Mainland, ASEAN, and Free Trade Agreement markets.HKD$ 6,000,00050%
Retail Industry Human Resource Demand Management Technology Application Support Program (Export Markketing Fund)The “SME Market Promotion Fund” established by the Trade and Industry Department is specifically designed to help small and medium-sized enterprises expand their overseas markets (outside of Hong Kong) and promote their products in other regions. Supported projects include websites, online stores, online advertising, exhibitions, and more.HKD$ 800,00050%
Retail Industry Human Resource Demand Management Technology Application Support Program (ReTAAS)The program is specifically designed for the Hong Kong retail industry, aiming to enhance productivity in the retail sector by subsidizing the application of technology for managing workforce demand. Commonly supported projects include electronic payment systems, the establishment of online stores, POS systems, and more.HKD$ 50,00050%

 

2. The nature of the company’s business

In the Hong Kong market, there are several consulting companies that assist businesses in applying for government funding. Choosing a high-quality and professional consulting company can expedite the application process and ensure that you don’t take the wrong path. Consulting companies can generally be categorized into four types:：

  • Consulting Companies Specializing in Government Funding Applications: These companies primarily assist clients in applying for various types of government funding. Given the diversity of government funding programs, they usually specialize in a few specific funding categories.
    (5-star rating highest)

    Expertise: *****
    Price: ***
    Speed: *****

  • Technology or Marketing Companies Offering “Part-Time” Government Funding Application Services: These companies primarily focus on technology applications or marketing, but they also offer “part-time” services to help clients apply for government funding. For example, a company specializing in ERP systems may also assist clients in applying for technology vouchers, which align with the solutions they provide.
    (5-star rating highest)

    Expertise: *
    Price: ****
    Speed: **

  • Secretarial Firms or Accounting Practices Offering “Part-Time” Government Funding Application Services: Similar in nature to the second category, these companies are also prevalent. They sometimes assist clients in applying for more suitable government funding programs due to their access to clients’ financial information. Among the Big Four accounting firms in Hong Kong, some have dedicated departments for assisting clients in applying for government funding and loans, as part of their “value-added services.”
    (5-star rating highest)

    Expertise: ****
    Price: ***
    Speed: ***

  • Companies Engaging in Fraudulent Government Funding Schemes: You may have received calls like this, claiming, “We can apply for certain government funding for you, and your company doesn’t need to do anything. We’ll settle the accounts after the funding is approved.” These so-called “companies” only require your company’s name to assist you in applying for funding, while secretly preparing all the documents and evidence on your behalf. Remember: There’s no such thing as a free lunch. The government has recently increased efforts to combat false applications for pandemic-related funds. If you fall into the trap of scammers, both the applying business and its owner may face severe consequences.
    (5-star rating highest)

    Expertise: *
    Price: *****
    Speed: *

Therefore, businesses must carefully choose consulting companies and, through conversations, ascertain whether the consulting company has a thorough understanding of government funding. Additionally, businesses should consider reviewing relevant government funding information on the official government website as an initial step.

 

3. Understand the Consultant’s Background and Application Experience:

As mentioned in the previous point, some consultants have primary “day jobs” and are not specialized government funding consultants. Many times, they may be client managers or regular salespeople with no expertise in government funding. On the other hand, some consulting companies that specialize in government funding have team members who have worked in various funding agencies and are relatively familiar with the workings of funding applications. Therefore, businesses must carefully choose the right funding consultant and ascertain from their conversations whether the consultant has a sufficient understanding of government funding. Businesses should also consider reviewing relevant government funding information on the government’s official website or other relevant sources.

 

4. Consulting Company’s Consultation Mode

Many government funding consulting companies in the market can provide preliminary funding consultation services. Typically, consulting companies will first assess the business’s needs and eligibility before providing consultation and a quotation. However, some funding consulting companies may require an initial payment before commencing consultation. Businesses can decide whether to opt for paid consultation. If a funding consultant does not propose a face-to-face consultation, businesses should proactively request one. This allows businesses to better understand the consultant’s background and scale and gain a deeper understanding of various government funding procedures for future applications.

 

5. Consultant Service Content

Government funding consulting companies usually offer services such as preparing application forms and final reports. However, it’s essential to note that if a funding consultant claims to “create” applications for you to obtain more government funding, businesses should be aware of the legal risks. Defrauding government funds is a serious criminal offense, and there have been cases where companies were prosecuted. If any false documents are involved during the application or execution process, the applying business will bear 100% of the legal responsibility, and unscrupulous consulting companies may escape legal consequences.

 

6. Funding Consultant Company’s Fee Structure

  • Fee Based on Funding Percentage: Many funding consultants in the market adopt a “percentage of funding amount” fee structure, with commissions ranging from 8% to 25%. They often advertise as “no success, no fee.” As the name suggests, the benefit of this type of technology voucher consultant service is that if the technology voucher application fails, the applying business does not need to bear any financial costs (though costs related to human resources, time, business opportunities, etc., are unavoidable). Because consultant fees are calculated as a percentage, the higher the funding amount, the higher the consultant’s commission. This fee calculation method can motivate consultants to maximize the scale of technology voucher projects. If applying businesses are not familiar with technology solutions, they may be easily persuaded by consultants to use unnecessary system functionalities. While the short-term upfront fee is not very apparent due to receiving 75% funding from the government, the long-term system maintenance costs need to be paid at the full price, creating a long-term burden for the applying business.
  • Fixed Fee: A fixed fee is entirely uniform, or it may be calculated based on the workload of the application project, not tied to the funding amount. The fee generally ranges from thousands to tens of thousands of dollars. Since consultant fees are independent of the application project, consultants have no incentive to persuade client companies to use unnecessary technology solutions. The engagement process is more direct and fast. However, independent consultants may not have the structural motivation to maximize funding like intermediary consultants with a “no success, no fee” model. Therefore, it is essential to have a clear explanation before commissioning an independent consultant to establish trust.
  • For more details, please refer to: Link to a website.

The Innovation and Technology Fund allocated 4 billion dollars last year, doubling over the past 5 years.

bryan

According to a report by the Hong Kong Economic Journal, the Hong Kong government’s funding for the “Innovation and Technology Fund” reached a new high in 2021, with actual expenditure doubling compared to 2017, reaching 4 billion Hong Kong dollars. The funding for the Technology Voucher Program (TVP) also increased to 590 million dollars, nearly 18 times higher than in 2017. TVP provides a maximum subsidy of up to 600,000 dollars to each company, aiming to support businesses in purchasing and implementing technology systems to enhance competitiveness and facilitate transformation. The maximum subsidy rate is 75%. TVP accepts applications throughout the year and allows projects to commence immediately after submission.

Read more: Introduction to the Technology Voucher Program (TVP).

The Director of the Innovation and Technology Bureau pointed out that during the pandemic, the Technology Voucher Program (TVP) has become very popular. In June 2021, the Innovation and Technology Bureau entrusted the Productivity Council to serve as the secretariat for TVP, which has helped expedite approvals. It is anticipated that approval rates should be more favorable by the middle of this year.

According to figures from the Innovation and Technology Bureau, in 2021, the Innovation and Technology Fund received over 11,300 applications, with 8,960 of them already approved. This represents a significant increase compared to 2017 when there were 3,000 applications and 1,500 approvals, marking an increase of 2.8 and 5 times, respectively. The actual expenditure of the Innovation and Technology Fund in the past year was approximately 4 billion dollars, which is more than twice the 1.33 billion dollars in 2017. The number of TVP applications and approved subsidies also saw a noticeable increase, rising from 577 applications in 2017 to 5,108 in 2021, with approved subsidies increasing from 31.7 million dollars to 590 million dollars, nearly 18 times higher.

Read more: Popular Projects under the Technology Voucher Program (TVP).

In 2020, during the pandemic, the government introduced the “Distance Business Program” to support businesses in continuing their operations through information technology. To date, the government has approved a total of 25,744 applications, involving over 21,000 companies, with 95% of them being small and medium-sized enterprises (SMEs), and the total funding amounting to approximately 1.7 billion dollars.

Hong Kong Funding Advisors Limited’s consultants for the Technology Voucher Program (TVP) have extensive experience. They can save businesses the time and reduce the chances of application failure when compared to self-application. Hong Kong Funding Advisors Limited has been specializing in TVP applications for many years, and their consultant team possesses senior-level experience. The most important guarantee they offer is a refund in case of an unsuccessful application.

Read more: 10 Common Questions About Applying for Technology Vouchers.

 

獲取建議

[Technology Voucher Consultant Tells You] The Six Steps to Applying for the Technology Voucher

The process of applying for the Technology Voucher Programme (TVP) is too complicated???

Many people find the application process for the Technology Voucher Programme (TVP) to be very cumbersome, with too many steps and a lot of required documents. There are also many who believe that there is no need to seek advice and assistance from TVP consultants. Is this really true? This article will answer these questions one by one. By reading this article, you will learn about the simple six-step process for applying for TVP and the reasons for seeking TVP consultants.

Let the Technology Voucher Consultant Understand the Company’s Development Needs

Firstly, before applying for the Technology Voucher Programme (TVP), companies need to understand whether there are genuine development needs for funding, such as business transformation and enhancing productivity. After identifying these development needs, companies can either independently search for suitable technology project providers or seek assistance from technology voucher consultants for consultation. With clear goals and direction, seeking assistance from technology voucher consultants after identifying the development needs will make the TVP application process faster and more efficient.

For example, a manufacturing company with a 50-year history in Cheung Sha Wan has recently identified some inefficiencies in their production line, such as slow material transfer speeds and the need for manual product inspections. Therefore, they require an automated production line system to improve production efficiency and quality. In Phase 1, a technology voucher consultant can assist this company in assessing their needs and objectives, as well as recommending viable technology solutions and technology providers.

Another example is a restaurant business that has noticed some issues during the ordering process, such as long order times and low order accuracy. To enhance customer satisfaction, they wish to implement a POS (Point of Sale) ordering system. Through the POS ordering system, customers can place their orders themselves, eliminating human errors and communication problems, streamlining the ordering process, and improving efficiency and accuracy. At the same time, the restaurant owner can better track menu item sales through the POS system for improved store and inventory management.

Phase 2: Reviewing Technology Voucher Application Eligibility

Companies need to prepare the required documents, which typically include a copy of their business registration certificate, proof of substantial business operations, expenditure quotations, evidence of substantial business operations, and relevant quotations for proposed projects, among others. After the company submits all the documents, the technology voucher consultant will review the eligibility of the documents, ensure that the project is relevant and suitable for the application by small and medium-sized enterprises, and verify the reasonableness of the budget and implementation details of the technology solution. This is done to ensure that the company qualifies for the technology voucher and to guarantee a smooth and expedited application process.

A retail store wishes to apply for technology voucher assistance to establish an e-commerce website, but the budget for website development exceeds the reasonable scope of the technology voucher. During the eligibility review process, the consultant identifies this issue and discusses alternative viable technology solutions with the client to ensure that the application complies with the regulations and requirements of the technology voucher.

A small-scale service industry company is considering applying for a technology voucher to implement a customer relationship management system to enhance customer satisfaction and loyalty. The technology voucher consultant needs to assess the company’s business type and scale, determine if the company is eligible for the application, and assist the company in the application process. In this process, the consultant needs to check whether the company meets the application requirements of the technology voucher program, such as having a valid business license and meeting the requirements related to the company’s establishment date and the number of employees, among others. If the company meets the eligibility criteria, the consultant can assist the company in proceeding to the next steps of the application.

Phase 3: Drafting the Project Application

Once the technology voucher consultant confirms the eligibility of the company, an experienced consultant with ample expertise in technology vouchers will swiftly draft a comprehensive and compliant project proposal based on the company’s business type, operational model, and the technology solution for which funding is sought. This proposal is then submitted along with the application form to the Innovation and Technology Commission. After preparing all the necessary documents and data, the consultant typically takes around one to three working days to draft the project application.

Phase 4: Follow-up on Application Inquiries

After submitting the application, the secretariat of the Innovation and Technology Commission may pose a series of questions regarding the company’s application submission and the requested funding amount. The company may need to provide additional documents or explanations in response to these inquiries. It’s important to note that companies must respond to the secretariat within one month, or their eligibility may be revoked. Technology voucher consultants can assist companies in preparing the necessary documents and providing precise responses to the secretariat’s questions, ensuring that the company addresses all inquiries within the one-month deadline.

Phase 5: Contract Signing and Implementation of the Project Plan

Once all the inquiries related to the technology voucher application are concluded, the company simply needs to await approval from the Innovation and Technology Commission. Upon approval, the company will be required to prepare a few documents for contract signing. After the contract is signed, the company can officially commence the funded technology project.

Phase 6: Completion of the Final Report and Receipt of Funding

After initiating the project, the company needs to submit a final report to confirm the successful execution of the technology voucher-funded project and its actual benefits to the applying company. Technology voucher consultants will assist the company in providing relevant documents and proof of project execution, as well as in drafting a final report that complies with the requirements of the Innovation and Technology Commission. Upon successful submission, the technology voucher funding will be received approximately two to four months later, marking the conclusion of the entire technology voucher application process.

Other articles related to the Technology Voucher:

Latest! 2023 Technology Voucher (TVP) Application Troubleshooting Guide

2023 Update: Comprehensive Understanding of TVP Technology Voucher Application

Since the government introduced the Technology Voucher Program, many businesses have shown keen interest in this government-funded initiative and have been exploring how to apply for this funding. Indeed, the funding amount for technology vouchers can reach up to 600,000 Hong Kong dollars, which is understandably drawing the attention of numerous enterprises. However, applying for technology vouchers is not a simple task, and it cannot be guaranteed that all applications will be successful.

Introduction to Technology Voucher Programme (TVP)

The Technology Voucher Programme (TVP) is a funding initiative introduced by the Hong Kong Special Administrative Region (HKSAR) government. It aims to support small and medium-sized enterprises (SMEs) in Hong Kong in adopting new technologies to enhance their competitiveness and efficiency. The program is administered by the Innovation and Technology Commission (ITC) and provides funding of up to HKD 600,000 for eligible businesses.

Here is some relevant information for a comprehensive understanding of the TVP technology voucher application:

  1. Scope of Funding: The TVP technology voucher covers a wide range of technology projects, such as web design, data analysis, POS systems, CRM systems, and more. Businesses can choose technology projects that are suitable for their needs and apply for funding.
  2. Funding Amount: Each eligible business can receive a maximum of HKD 600,000 in funding, which may be adjusted based on the scale and requirements of the project.
  3. Funding Ratio: The funding ratio for TVP technology vouchers is three to one, meaning the government provides three parts of the funding, and the business contributes one part.
  4. Eligibility Criteria: To apply for TVP technology vouchers, businesses must meet the following criteria: (a) registered as a small or medium-sized enterprise in Hong Kong, and (b) have not previously received government funding for the same or similar technology projects.
  5. Application Process: Businesses applying for TVP technology vouchers need to submit an online application through the ITC website, along with the required application forms and documents. After applying, ITC conducts an initial review, and successful applications proceed to the detailed approval stage.
  6. Approval Process: The approval process for TVP technology vouchers includes initial review and detailed approval. The initial review primarily ensures that applying businesses meet the eligibility and application requirements. The detailed approval involves technical assessment, business evaluation, and project review, with ITC notifying the applying business within 45 working days.

Why Businesses May Encounter Failure When Applying for Technology Vouchers?

  1. Suspected Collusion Among Technology Vendors The government has a set of requirements for businesses applying for technology vouchers, including obtaining a specified number of quotations based on the project’s value. If applicants cannot meet the required number of quotations, they can only resolve this issue through reasonable explanations, among other methods. However, the practical implementation of these requirements is strict, so businesses must ensure compliance when applying for technology vouchers to avoid being rejected due to suspected collusion.

As previously mentioned, the government mandates that businesses applying for technology vouchers must obtain a specified number of quotations based on the project’s value. However, businesses may unwittingly fall into a trap set by service providers, either due to lack of awareness or other factors. For example, when a business requests a quotation from Supplier A, that supplier may claim to have another shell company, Company B, which is specifically set up to provide enough quotations to meet the business’s application requirements. However, such practices constitute illegal collusion. If the government detects collusion in the quotations submitted by the business, the application for technology vouchers may fail.

What Is Vendor Collusion in Technology Vouchers? Vendor collusion in technology vouchers refers to improper agreements reached among vendors during the implementation of technology voucher projects, such as agreements related to pricing, scope of services, scoring, etc., with the aim of limiting the participation of other competitors and gaining unfair competitive advantages. This behavior goes against the principles of fairness, transparency, and competition, and it damages the image of both the businesses applying for technology vouchers and the technology voucher program itself. Therefore, the government should strengthen supervision and management of the implementation of the technology voucher program to ensure that all vendors have equal opportunities to compete and impose appropriate penalties and sanctions on vendors who violate collusion rules.

Legal Responsibilities and Sanctions for Vendor Collusion in Technology Vouchers Vendor collusion in technology vouchers constitutes unfair competition and may potentially violate relevant laws and regulations such as antitrust laws. Therefore, the government may impose corresponding sanctions and penalties for collusion behavior. Specific legal responsibilities and sanctions may include:

  • Cancellation or suspension of the technology voucher project: If the government finds evidence of collusion among vendors, it may cancel or suspend the related technology voucher project.

  • Denial of future participation in technology voucher applications: The government may refuse vendors involved in collusion from participating in future technology voucher applications.

  • Fines: Colluding vendors may face fines imposed by the government as a penalty for their improper behavior.

  • Financial loss compensation: If the government and relevant businesses incur financial losses due to collusion, they may seek compensation from the colluding vendors.

  • Criminal prosecution: Collusion behavior may violate antitrust laws and other relevant legal regulations, potentially leading to criminal prosecution of the colluding vendors.

In summary, the government takes a strict stance against collusion behavior and ensures the fairness, transparency, and competitiveness of the technology voucher program.

  1. Insufficient Supporting Documents When applying for technology vouchers, businesses need to submit relevant supporting documents to meet the government’s eligibility requirements, such as being a company registered in Hong Kong under the Business Registration Ordinance or Companies Ordinance and having substantive business operations in Hong Kong related to the application project. In addition to business registration proof, other documents may be required to demonstrate the ongoing development and operation of the business, such as MPF contribution records. If a business fails to submit the required documents, it may not meet the government’s requirements, leading to a failed application or difficulties during the application process. Therefore, businesses need to understand and prepare all necessary documents to fully comply with the government’s requirements.

  2. Lengthy Waiting Times When applying for technology vouchers, government departments follow a thorough approval process, with each application undergoing internal review, which takes time. While efforts have been made to expedite the approval process, the fact that approval meetings are held only every two months can result in relatively long waiting times for businesses. Extended waiting times can test a business’s patience, and some may become frustrated and give up on their applications, leading to failure in the technology voucher program. Therefore, applying businesses need to exercise patience while awaiting the government’s response and continue to follow up on the application progress to ensure a smooth process.

How to Increase the Success Rate of Technology Voucher Applications?

How to Increase the Success Rate of Technology Voucher Applications?

  1. Comprehensive Content in the Technology Voucher Application

The technology voucher application is the key document that determines whether an application is successful or not. In addition to providing company information, the application must also provide a detailed description of the content of the technology project. Throughout the entire proposal, it is crucial to clearly state the purpose of applying for the technology voucher, the benefits to the company, and the role of the proposed project. A specific and detailed application can alleviate any doubts the Technology Voucher Program Committee may have and make them believe that the project can be executed reasonably. Therefore, the more specific and detailed the content description in the application, the higher the chances of a successful application.

  1. Engage Experienced Technology Voucher Consultants

Technology voucher consulting services are external advisory services aimed at providing recommendations to businesses for their technology service or solution adoption plans when applying for technology vouchers. While some businesses may have doubts about the role of technology voucher consultants, in reality, these consultants are essential for increasing the success rate of applications. Applying for the Technology Voucher Program involves filling out numerous forms and providing relevant supporting documents and information. Applying businesses also need to elaborate on their technology needs and plans and provide relevant technical and market research reports, business plans, etc., to demonstrate the feasibility and business value of the proposed project. Given that this requires an in-depth understanding of relevant policies and regulations and a wealth of experience and expertise, technology voucher consultants can assist businesses in understanding the relevant policies and requirements of the program. Furthermore, technology voucher consultants can help businesses select the most suitable technology vendors, provide professional insights and recommendations, and assist businesses in finding technology solutions that best fit their needs. During the application process, technology voucher consultants can liaise with relevant government departments to ensure a smooth application process, preventing businesses from missing out on opportunities due to failed technology voucher applications.

It is worth noting that technology voucher consultants must be companies registered in Hong Kong under the Business Registration Ordinance, and they must have no relationship with the selected or proposed service providers. To successfully apply for technology vouchers, businesses need to carefully consider the content of their applications and the necessary documents and can leverage the expertise and experience of technology voucher consultants to make the application process smoother and more successful.

How to Apply for Technology Vouchers

Any applicant can submit an application through the Technology Voucher Program Management System. Simply visit the Innovation and Technology Commission’s website to submit your application: https://www.itf.gov.hk/l-tc/TVP.asp

Please note: Before submitting the application form, ensure that you have the following required documents:

(a) A copy of the applicant’s Business Registration Certificate Form 1(a)/1(c) or the most recent Annual Return form (Form NAR1) from the Companies Registry. (b) Copies of documents proving that the applicant has substantial business operations in Hong Kong related to the proposed project when applying. Examples include invoices/receipts or business contracts issued within the last three months, the most recent audited accounts, MPF contribution records, and tax assessment notices from the Inland Revenue Department. (c) Copies of valid Hong Kong identity cards or passports of the persons signing the application form on behalf of the applicant. (d) Copies of all signed Declarations of No Collusion and Acceptance of Fair Quotation/Tender according to Section 12 of this guide. (e) Copies of quotations submitted by bidders, showing their detailed contact information (including address, phone, and email). Specify the quotations you intend to select and how each item on the quotations corresponds to the items of expenditure in Section B(I) of the application form.

What Projects Are Eligible for Technology Voucher Funding?

Technology vouchers provide funding to projects that utilize technology services and solutions to enhance productivity or upgrade and transform business processes. A list of typical technology services and/or solutions covered by technology vouchers can be found in Annex 2 of the Application Guide. Applicants can propose other technology services and solutions that achieve the goals of the Technology Voucher Program. Common solutions include user management systems, human resource process redesign, inventory management systems, ERP systems, POS systems, logistics management systems, online sales systems, customer relationship/information management systems, online stores, e-commerce platforms, online hotel booking systems, travel agency websites, insurance brokerage systems, and more.

Can Multiple Technology Voucher Applications Be Submitted?

Each applicant can only submit one technology voucher application at a time. If you need to submit two applications, you must complete the earlier approved project and submit the final project report before submitting a new application.

Can Companies or Organizations Without Substantial Operations in Hong Kong Apply for Technology Voucher Funding?

Companies or organizations registered as “shell companies” or with the majority of their primary business conducted outside Hong Kong are not considered to have substantial business operations in Hong Kong. Therefore, they do not qualify for technology voucher funding.

If a Company Has Received Other Government Grants for a Certain Technology Project, Can It Apply for Technology Voucher Funding Simultaneously?

Applicants cannot simultaneously apply for and receive direct local government funding for the same cost items in the same approved project. If an applicant owns two companies, and one has successfully applied for technology voucher funding, the other company can still apply for funding. However, please note that, since August 14, 2020, different legal entities owned by the same individuals with 30% or more ownership are no longer considered the same entity when calculating cumulative funding amounts.

What Is the Processing Procedure After the Innovation and Technology Commission Receives an Application?

After receiving the application form, the Innovation and Technology Commission will verify its eligibility and conduct an initial assessment. If necessary, the Innovation and Technology Commission may request clarification or supplementary information from the applicant.

Eligible applications will be considered by the Technology Voucher Program Committee (the Committee), while ineligible ones will be returned to the applicant by the Secretariat of the Technology Voucher Program.

The Committee consists of representatives from the business sector, technology sector, professional services sector, and relevant government departments. The list of Committee members can be found on the program’s website. Applications supported by the Committee will be submitted for funding approval by the Director of the Innovation and Technology Commission.

What Are the Evaluation Criteria for Technology Vouchers?

Each eligible application is reviewed and considered on a case-by-case basis. The evaluation criteria for technology voucher projects include:

(a) Whether the proposed project is relevant to the applicant’s business and expected to enhance competitiveness through increased productivity, cost reduction, efficiency improvement, or business process upgrading and transformation. (b) Whether the budget is reasonable. The Committee or the Innovation and Technology Commission may assess the costs by referencing market prices for relevant technology. Each expenditure item should be necessary and directly related to the project. (c) Whether the implementation details are reasonable. Considerations may include whether specific project outcomes have been defined. Additionally, implementation details should be practical based on factors such as the complexity of the technology and the project’s timeline. (d) Any adverse records known to the Technology Voucher Program Committee and the Innovation and Technology Commission regarding consultants and/or service providers, if applicable.

What Are Common Reasons for Past Application Failures?

Each eligible application is reviewed and considered on a case-by-case basis. Common reasons for applications not supported by the Committee in the past include:

Applicants failing to submit the required documents related to their application. Applicant companies not addressing/responding to questions raised by the Innovation and Technology Commission regarding the application in a timely manner. A significant portion of the project’s total cost comprising cost items for off-the-shelf solutions. Projects containing minimal or no technological elements, such as pure purchases of certain hardware or software, making them inconsistent with the program’s objectives.

Will Technology Voucher Funding Be Disbursed in Advance before the Project Starts?

For technology voucher applications received before December 1, 2019, the Innovation and Technology Commission will disburse funding, not exceeding two-thirds of the actual project cost (with the amount approved by the Director of the Innovation and Technology Commission as the upper limit), through reimbursement. Applicants should submit the required documents electronically through the program’s dedicated website within two months after completing the technology voucher project to arrange for the disbursement of approved funding.

For applications received on or after December 1, 2019, the Innovation and Technology Commission will disburse the first installment, up to 25% of the approved funding amount, according to the applicant’s request after signing the funding agreement. Applicants must first invest the same percentage of funding based on a matching principle. The remaining disbursements will be made after the Innovation and Technology Commission accepts the applicant’s project completion report.

Does Successfully Obtaining Technology Voucher Funding Mean That We Can Immediately Receive the Funding After Completing the Entire Project?

Applicants should submit the following documents electronically through the technology voucher program’s dedicated website within two months after completing the technology voucher project to arrange for the disbursement of approved funding:

(a) A final project report indicating the project’s completion, including a summary of project expenses and outcomes. (b) Evidence of project outcomes (e.g., consultant reports, delivery receipts, screenshots of software systems, photos of equipment/hardware, records of training conducted such as photos and training materials, etc.). (c) Original or duplicate invoices and corresponding receipts for each expenditure item. The payee’s name on the invoices and receipts must match the applicant’s name. (d) If the approved funding amount exceeds HKD 50,000, an audited income and expenditure statement for the project, prepared by an independent auditor, must be submitted to the Innovation and Technology Commission. (e) If the approved funding amount is HKD 50,000 or less, the applicant must prepare and submit a final income and expenditure statement, declaring its accuracy and compliance with the provisions of the funding agreement. When preparing the final income and expenditure statement, applicants can refer to the “Auditor’s Guide” in the “Audit Requirements” section mentioned in the Application Guide, which outlines the format of the audited income and expenditure statement. The Innovation and Technology Commission has the right to conduct a detailed review of the final income and expenditure statement.

Late submission of the required documents can result in deferred, reduced, or discontinued disbursement of project funding. If applicants encounter difficulties while submitting the final report or supporting documents through the dedicated website, they can contact the Innovation and Technology Commission for assistance.

Successful Cases of Expanding into Macau with BUD

Tips for Successful BUD Application |

Successful Case of Expanding into the Macau Market Using the BUD Special Fund

Beauty Agency Company Encounters Challenges in Developing in Hong Kong?

In 2020, a beauty product agency company in Hong Kong with over 20 years of operation (hereafter referred to as “Beauty Agency”) approached us and entrusted our consultants to assist them with their BUD application. They focused on representing and distributing high-quality international beauty products. Leveraging their keen insights into market trends and stringent product selection standards, Beauty Agency quickly established a strong reputation and recognition in the Hong Kong beauty product market.

Beauty Agency adheres to the philosophy of “quality first, customer-oriented,” dedicating themselves to providing the highest quality beauty products for Hong Kong consumers. The company represents brands in various categories, including skincare, cosmetics, perfumes, and covers both well-known international brands and innovative emerging brands.

To meet the diverse needs of consumers, Beauty Agency not only established multiple physical stores in Hong Kong but also engaged in online sales and promotions through e-commerce platforms and social media. They have a professional marketing team responsible for designing and executing various promotional activities to attract more consumers and expand their market share.

Furthermore, Beauty Agency places a strong emphasis on spreading and disseminating product knowledge. They frequently host beauty seminars and product trial events to educate consumers about product efficacy and usage. The company also provides professional beauty consulting services to ensure that customers can select products that best suit their needs.

Beauty Agency doesn’t just focus on local market demands but also actively seeks opportunities to expand into overseas markets. With years of industry experience and a professional team, Beauty Agency has successfully established itself as a leading player in the Hong Kong beauty product agency industry.

However, the company’s leadership revealed to our BUD consultants the recent operational challenges they’ve faced. These challenges include intensified market competition, changes in the economic environment, and rising rental costs. Particularly, the COVID-19 pandemic has had a significant impact. Hong Kong implemented a series of preventive measures such as restricting the flow of people and enforcing social distancing. As a result, foot traffic to Beauty Agency’s physical stores saw a substantial decline, severely impacting their performance. Additionally, the pandemic disrupted global supply chains, making it difficult to procure and supply certain products. Finally, amidst business expansion and heightened market competition, Beauty Agency needed to attract and retain more talented individuals. However, the recruitment and training costs for such talent have been steadily increasing, placing pressure on the company’s human resources.

Beauty Agency Company Encountering Bottlenecks in Development in Hong Kong

After a series of market research, Beauty Agency chose Macau as a market outside of Hong Kong. The main reason is that Macau is relatively close to Hong Kong, with convenient transportation between the two places. This makes it relatively easy for the company to expand and operate in the Macau market, and it allows them to fully utilize Hong Kong’s advantages as a regional logistics and supply chain center.

Furthermore, Macau and Hong Kong are both Special Administrative Regions of China, and they share many similarities in language, culture, and lifestyle. This makes it easier for the Hong Kong beauty agency to understand the demands of the Macau market and quickly adapt to the local market environment. As a famous tourism and entertainment center in Asia, Macau attracts a large number of domestic and international tourists every year. This creates a significant demand for beauty products in the Macau market, providing excellent market opportunities for the beauty agency.

In terms of the economy, Macau has experienced stable economic growth in recent years, especially driven by the tourism, gaming, and hotel industries. The purchasing power of local residents has been steadily increasing, creating a favorable economic environment for the beauty agency in the Macau market.

Additionally, the Macau government actively supports economic cooperation and exchanges between the two regions and has introduced a series of facilitative policies to encourage Hong Kong businesses to invest in Macau. The beauty agency can take full advantage of these policy benefits to reduce the costs and risks of market expansion.

In summary, by choosing Macau as a market outside of Hong Kong, the beauty agency can leverage factors such as geographical proximity, cultural similarities, the development of the tourism industry, economic growth, and policy support to expand their business more rapidly and enhance brand recognition.

The Development of the Macau Market is not Without its Challenges..

In the expansion plan of Beauty Agency into the Macau market, they encountered significant difficulties in terms of financial resources, especially with regard to upfront investment costs. Expanding into the Macau market required substantial initial investments, including market research, brand promotion, store selection, and renovations. These investments may put pressure on the company’s cash flow, especially in the initial stages of the business when income is not yet stable.

Operating in Macau, the beauty agency needs to cover local expenses such as rent, employee salaries, and logistics costs. Due to the higher cost of living in Macau, these expenses may have an impact on the company’s financial condition.

How can BUD in Macau Lend a Hand?

The beauty agency used the BUD Special Fund to expand its business in the Macau market and adopted the following strategies:

  1. Hiring Sales and Marketing Personnel: The company hired sales and marketing professionals with local market experience and expertise in the Macau market. They were responsible for introducing the company’s beauty products to potential customers and establishing partnerships with local beauty salons, pharmacies, department stores, and other collaborators to expand product sales channels.

  2. Creating Product Samples: To provide potential customers with a more intuitive understanding of the company’s products, the company created various product samples. These samples were showcased in the company’s stores, partner sales points, and various exhibition events to attract customers for product trials and purchases.

  3. Establishing a Website: The company developed a dedicated website tailored to the Macau market, offering versions in both Chinese and Portuguese to cater to local market demands. The website featured the company’s brand story, product descriptions, event information, and provided online shopping capabilities, allowing customers to conveniently browse and purchase products at any time.

  4. Google Advertising: The company utilized the Google AdWords platform for search engine marketing (SEM). They ran keyword advertisements targeting potential customers in the Macau market, increasing the brand’s visibility in search results and attracting more potential customers to visit the company’s website or physical stores.

  5. Facebook Advertising: The company ran targeted audience advertisements on Facebook, tailoring them to the characteristics and interests of consumers in the Macau market. This approach aimed to enhance brand awareness on social media and encourage potential customers to become actual consumers.

  6. Participating in Exhibitions: The company actively participated in beauty industry exhibitions held in Macau. By showcasing its products and services at these events, the company engaged in face-to-face interactions with industry professionals and potential customers, enhancing its brand image and expanding business collaboration opportunities.

BUD Has Shown Significant Effectiveness

Through the implementation of these strategies, the beauty agency has achieved positive results in its expansion plan in the Macau market. Here are the specific achievements:

  1. Increased Brand Awareness: Through various online and offline promotional activities, the company has successfully increased its brand awareness and reputation in the Macau market, attracting more attention from potential consumers.

  2. Expanded Market Share: The company has established stable partnerships with local sales channels, successfully tapping into new customer groups. Additionally, the establishment of the company’s online sales channels has provided support for business growth, further increasing market share.

  3. Increased Revenue and Profits: With the company’s growing brand awareness and expanding customer base in the Macau market, sales and profits have gradually increased, generating significant revenue for the company.

  4. Accumulated Industry Experience: Throughout the expansion process in the Macau market, the company has accumulated valuable industry experience and market insights, which will be beneficial for the company’s future expansion into other markets.

  5. Built a Good Reputation: With high-quality products and excellent service, the company has built a strong reputation in the Macau market, further solidifying its brand image and attracting more potential consumers.

With the support of the BUD special fund, the beauty agency has achieved significant success in its expansion plan in the Macau market. This not only helps enhance the brand’s local visibility and market position but also provides experience and a foundation for the company’s expansion into other markets in the future.

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Latest Release: BUD Easy Application

The government launched the “BUD Special Fund” on June 16, 2023 – Easy Application:

  • The funding ceiling for each approved project under Easy Application is HKD 100,000????.
  • Funding will still be provided on a 50%:50% basis, following the principle of equal sharing????.
  • Application processing time has been shortened to complete within 30 working days⏳.
  • Applications will be accepted throughout the year, and you can apply every 6 months????.
  • The maximum project implementation period is 12 months????.

“BUD Special Fund” – Easy Application can fund projects such as????:

  • Advertising promotion
  • Exhibitions and related expenses
  • Design and production of promotional materials
  • Establishing or updating company websites
  • Mobile applications for promotional purposes, and more.

Significant Updates to Technology Voucher Application Documents!

The Innovation and Technology Bureau is tightening the application process for technology vouchers. When applying for IKEA, there may be a chance that the following documents need to be provided:

  1. If the applicant sells products, there may be a need to submit photos of the products or photos of the store.
  2. Some bank transaction records as operational evidence.
  3. Employee MPF records or labor insurance.

Therefore, our company absolutely refuses to assist enterprises attempting or intending to defraud government subsidies. We recommend Hong Kong companies to use technology vouchers for:

  1. Creating a company website.
  2. Website SEO optimization.
  3. Mobile application (App).
  4. Customer database (CRM).

Can Hong Kong Companies Successfully Apply for a £600,000 Technology Voucher After Immigrating to the UK?

You need to meet the following conditions:

???? Hong Kong company must be in normal operation

???? Need promotion for a website / App / Facebook or Google, or

???? Commercial system, but must be legally using government subsidy amounts

Why choose us?

???? Over 500 successful cases, one of the most experienced government subsidy consulting companies in Hong Kong

???? If unsuccessful, we promise an immediate refund of the deposit*

???? In 2021, we established a subsidiary in the UK with full-time staff to follow up on applications

Technology Voucher Application Process:

1️⃣ Pre-application assessment

2️⃣ Draft project budget and project plan

3️⃣ Submit application documents and application form

4️⃣ Initiate the project and manage the application progress

5️⃣ Submit the final report and assist in obtaining the subsidy

*Refunds are subject to terms and conditions in the sales contract. Please refer to the contract for details.