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:

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.
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• 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.
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• 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.”
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• 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.
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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.
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