Introduction to various government-funded projects

From June 1, 2020, the technology voucher program will relax the qualifications for project development. Enterprises can start the project the day after submitting the technology voucher application, and submit their commitments and declarations to the Innovation and Technology Administration within 5 working days after the start. This new measure also applies to companies that have already submitted applications.

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What is a technology voucher?

The Technology Voucher Program (TVP) was established by the Hong Kong Government’s Innovation and Technology Fund with a grant of 500 million yuan. The main purpose of technology vouchers is to subsidize Hong Kong SMEs through the use of technology services and solutions to enhance their competitiveness and promote social development. The technology voucher pilot program was implemented for the first time for 3 years. The Technology Voucher Scheme began to accept applications in November 2016. From March 2019, the government has even incorporated the Technology Voucher Scheme into the Innovation and Technology Fund for regularization. The amount of subsidy increased from 200,000 to HK$400,000. From April 2020, the upper limit of applications will be raised to HK$600,000, and the funding ratio will be raised to 75%. So far, the Technology Voucher Program has approved more than 1,000 technology projects (data as of March 2019) with an amount of more than 100 million yuan. More than 50% of them are funding the “Enterprise Resource Planning Program” or related projects.

Eligibility for Technology Voucher

In February 2019, the Technology Voucher Program relaxed the application qualifications to include charities and non-profit organizations.

Enterprises and institutions (except listed companies) that meet the following conditions can apply:

	(a)(i)	registered in Hong Kong under the Business Registration Ordinance (Chapter 310); or
	(a)(ii)	A company incorporated in Hong Kong under the Company Ordinance (Chapter 622)incorporated in Hong Kong; or
	(a)(iii)	According to relevant regulations established in Hong Kong a statutory body; and
	(b)	is not a government-funded agency* or an affiliate of any government-funded agency*; And
	(c )	has substantial business operations in Hong Kong when the application is submitted, and the business must be related to the application project.

Technology Voucher Amount

Technology Vouchers will provide a maximum of HK$600,000 in subsidies to each eligible applicant in a 3:1 matching mode. Applicants must invest in cash not less than a quarter of the total cost of the approved project. The technology voucher will provide applicants with funding not more than three-quarters of the actual cost of the project in the form of reimbursement. Each eligible applicant can be approved for up to six projects, but the cumulative funding limit is HK$600,000. To ensure that they can focus on the implementation of the project, applicants must not conduct more than one technology voucher project at the same time. Expenses under approved technology voucher projects cannot accept funding from other local public funding sources

Technology Voucher Evaluation Criteria

Each eligible application will be assessed and considered on a case-by-case basis. The evaluation criteria include:

Is the proposed project relevant to the applicant’s business
Is the budget reasonable
Are the implementation details reasonable?
Whether the relevant consultants and/or service providers have bad records.

Types of projects funded by technology voucher

The Innovation and Technology Commission has detailed the types of projects funded by technology vouchers. Common traditional projects, such as webpages/online shops, apps, enterprise resource planning solutions (ERP), big data and cloud analysis solutions (Cloud Big Data Analysis), electronic Inventory Management System (Inventory Management System), Customer Management System (CRM), Logistics Management System, Ticketing System, Learning Management System, etc.

How to start applying for technology voucher?

If companies of all sizes want to apply for technology voucher, they may contact HKEasyFund’s consultants. We are a professional technology voucher consulting company, providing preliminary consultation on technology voucher (TVP) and making specific suggestions. Yishifen Technology Voucher Consultant Team is familiar with various professional fields, including law, accounting, information technology, e-commerce, marketing and so on. The assistance of a professional technology voucher funding consultant will help you get twice the result with half the effort and get funding faster.

Documents required to apply for technology voucher

Certified copy of the annual return (Form NAR1)
Business Registration
Copy of supporting documents of actual business operation
Certified copy of the quotation to be selected
A copy of the valid ID of the person signing the application form
The integrity clause and non-collusion clause in the quotation invitation letter/tender invitation letter
The completed technology voucher application form

Technology Voucher Submission Application

Approve

Project implementation

Project completion, prepare report

Expense Reimbursement Procedures

First Step

Second Step

Third Step

Fourth Step

Fifth Step

Optimized measures will be implemented from April 9, 2020:

The two million caps for the mainland plan and the free trade agreement plan will be cancelled.
Each company can plan in the mainland Up to 4 million yuan will be funded.

The optimization measures will be implemented from January 20, 2020:

- Increase the cumulative funding limit for each company: from 1 million yuan Increase to 2 million yuan
- Increase the initial funding from 25% to a maximum of 75%
- Relax the upper limit of the number of funded projects: increase from 10 to 20

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1. The software file of the application form (MS word format, Chinese or English version)

2. One original copy of the application form signed by the authorized person of the applicant company and stamped by the company

3. Other supporting documents:

－　A copy of the business registration certificate of the applying enterprise

－　A copy of the supporting documents of the major shareholders of the applying company (eg: Annual Return Form AR1 issued by the Companies Registry)

－　A copy of the documents proving that the applicant company has substantive business operations in Hong Kong

－　A copy of the document certifying that the applicant enterprise has a direct investment relationship with the mainland business unit

All non-listed companies that are registered in Hong Kong in accordance with the Business Registration Ordinance (Chapter 310) and have substantial business operations in Hong Kong

HK$1 million is positive. The subsidy is provided on the principle of reciprocity, that is, the government subsidizes up to 50% of the total approved expenditure of an individual project, and the enterprise must bear no less than 50% of the total approved expenditure of the project in the form of cash.

There are a maximum of 20 projects, and the maximum cumulative funding amount for the two projects is HK$4 million.

Method 1-Set up the initial funding:

Enterprises need to open a separate project account to handle project income and expenses.
The project can only start after approval and signing of the funding agreement.

Method 2-No initial funding:

Enterprises do not need to open a bank account dedicated to the project.
The project can start the day after submitting the application form and sending it to the secretariat (but the application must be approved to receive funding).

Each funded project must be completed in no more than 24 months.

The following 6 unfunded expenditure categories
1. Branches/sales points/display points/business units-related to the lease, decoration, water, electricity and coal expenses of the branches/sales points/display points/business units*
*Except for newly added branches/sales points/display points/business units under the “ASEAN Initiative”

2. Equipment/Equipment-Procurement/rental of desktop and laptop equipment, software and other equipment for general applications (such as cameras, projectors, printers, retail systems, etc., including general equipment for new recruits of the project) fee

3. Marketing, promotion, and exhibition gifts, souvenirs or promotional prizes. Membership registration and annual fees of associations or professional organizations (including one-time or constant fees) Branches/product display fees for sales purposes (including physical stores) And online sales points) commission calculated based on sales performance/profit (such as the commission required by Taobao)

4. Patent and trademark registration-patent and trademark registration fees in Mainland China, ASEAN and outside Hong Kong.

5. Transportation-transportation costs to and from Mainland China/Hong Kong and ASEAN/Hong Kong, product freight and logistics costs (except for freight and logistics costs for exhibitions and other exhibitions and sales activities)
6. Others-Product production/production costs (except for sample production costs for marketing and promotional purposes)

Useful links:

BUD Special Fund Official website
What do you know from the BUD consultant: Choose BUD consultant carefully

Planning The Case

Evaluate Situation

File Case To The Court

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Implementation of optimization measures from April 9, 2020:

The mainland plan and the free trade agreement plan will each cancel the 2 million caps
Each company can receive a maximum of 4 million yuan under the free trade agreement program

Implementation of optimization measures from January 20, 2020:

Increase the cumulative funding limit for each company: from 1 million yuan to 2 million yuan
Increase the initial funding from 25% to a maximum of 75%
Relax the upper limit of the number of funded projects: increase from 10 to 20

Starting from January 20, 2020, the “ASEAN Plan” has been upgraded to the “Free Trade Area Plan”. Enterprises can receive a total of 4 million yuan in funding for up to 20 ASEAN projects through equal funding. The funding limit for each project It is 1 million yuan.

*ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam
*Free trade areas are New Zealand, the four European Free Trade Association countries, Chile, Macau, Georgia and Australia

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1. The software file of the application form (MS word format, Chinese or English version)

2. One original copy of the application form signed by the authorized person of the applicant company and stamped by the company

3. Other supporting documents:

－　The copy of the business registration certificate of the applying enterprise

－　The copy of the supporting documents of the main shareholder information of the applying enterprise (for example: issued by the Companies Registry Annual Return Form AR1)

－　Copy of documents proving that the applicant company has substantive business operations in Hong Kong

－　Copy of documents proving that the applicant company has direct investment relationship with local business units in ASEAN countries

All non-listed companies that are registered in Hong Kong in accordance with the Business Registration Ordinance (Chapter 310) and have substantial business operations in Hong Kong

There are a maximum of 20 projects, and the maximum cumulative funding amount for the two projects is HK$4 million.

Method 1-Set up the initial funding:

Enterprises need to open a separate project account to handle project income and expenses.
The project can only start after approval and signing of the funding agreement.

Method 2-No initial funding:

Enterprises do not need to open a bank account dedicated to the project.
The project can start the day after the application form is submitted and sent to the secretariat (but the application must be approved to receive funding).

Each funded project must be completed in no more than 24 months.

The plan covers three major areas, including (i) brand development; (ii) upgrading and transformation; and (iii) marketing expansion.

The following are some examples that fit the relevant categories:

Develop brand

(A) Brand development strategy and positioning-corporate brand vision, product and service planning;
(B) Brand establishment, design and communication-brand image and style development, brand reconstruction;
(C) Brand management-brand evaluation, brand protection;
(D) Brand Monitoring-Brand Property Research and Brand Sustainability Investigation

Upgrade and transformation

(A) Business model upgrade and transformation-from original equipment manufacturer (OEM) to original design manufacturer (ODM) and/or private label manufacturer (OBM);
(B) Product innovation and repositioning-product strategy, new product development;
(C) Material management-supply chain planning and execution;
(D) Technology upgrade-manufacturing technology upgrade, process and business automation;
(E) Management upgrade-world-class management system, business process reorganization, quality improvement;
(F) Logistics management-warehousing management, fleet management and distribution management system improvement.

Expand marketing

(A) Marketing strategy planning-marketing strategy formulation;
(B) Marketing business operation management-operation transformation;
(C) Marketing channel management-marketing strategy and research, sales and distribution channel development, publicity and promotion activities implementation;
(D) Marketing team establishment and management-staff development and performance management.

Planning The Case

Evaluate Situation

File Case To The Court

Complete

STEP 1

STEP 2

STEP 3

STEP 4

The “SME Marketing Fund” (hereinafter referred to as the “Fund”) aims to provide subsidies to SMEs to encourage SMEs to participate in export promotion activities to help them expand their overseas markets in Hong Kong.

The company must have been registered in Hong Kong in accordance with the Business Registration Ordinance (Chapter 310 of the Laws of Hong Kong).
Enterprises must meet the government’s defined definition of small and medium-sized enterprises, that is, if they are engaged in manufacturing and employ less than 100 people in Hong Kong²; and if engaged in non-manufacturing and employ less than 50 people in Hong Kong .
When applying for the fund, the company must have substantial business operations in Hong Kong. Shell companies or companies engaged in main business operations outside Hong Kong will not be deemed to have substantive business operations in Hong Kong³.
If the company has previously received funding from the fund, the cumulative funding amount received cannot exceed the cumulative funding limit set by the fund. Applicant companies with similar business registration information (such as business nature, address, contact number, shareholders/directors) will be regarded as connected companies. For the calculation of the cumulative funding ceiling, these related companies will be regarded as a single company, that is, the cumulative funding received by these related companies will be combined and cannot exceed the cumulative funding ceiling.
The company is not the sponsor/co-organizer/service provider or company connected with the sponsor/co-organizer/service provider of the export promotion activity involved in the application.

The funding provided by the fund allows SMEs to participate in the following export promotion activities to promote their products and/or services, and these export promotion activities or activity platforms must be sponsored by well-established organizations ⁴ or Operation:

Exhibitions/exhibitions outside Hong Kong.
Hong Kong overseas business investigation group.
Local fairs/exhibitions with markets outside Hong Kong as the main target (for detailed requirements, please click here Place).
Publish advertisements in print trade publications that target markets outside Hong Kong.
Use electronic platforms/media to conduct export promotion activities targeting markets outside Hong Kong, such as advertising, keyword search, uploading product information, establishing or optimizing online stores, etc.
Create or optimize company websites/mobile apps owned by applicant companies and targeted at markets outside Hong Kong for export promotion.

Each application can only include related expenses for participating in one export promotion activity, and the maximum amount of subsidy is 50% of the total approved expenses paid by the applicant company for the relevant activity or 100,000 yuan, whichever is lower.

There is no limit to the number of times an enterprise can apply for fund grants, but the cumulative amount of funding received by each enterprise is capped at 800,000 yuan.

The company must be on the end of the participating trade fairs/exhibitions or trade missions, the publication day of the printed trade publications for advertisements, the end of the relevant contracts for export promotion activities conducted on the electronic platform/media, or establish/optimize the company owned by the applicant company Within 60 calendar days after the completion of the relevant project of the website/mobile application, the funding application shall be sent to the “SME Marketing Fund” Section of the Trade and Industry Department by post or in person. Applicants must ensure that their applications are accepted by the Department of Industry and Trade within the specified deadline. Late applications will not be accepted. If the application is submitted by post, the applicant enterprise should take into account the risks and time involved in the post. Regardless of whether the relevant export promotion activities are held in Hong Kong, the Trade and Industry Department only calculates the time limit based on the Hong Kong calendar. If the application deadline is a Saturday, Sunday or public holiday, the applicant company must ensure that the application submitted by it is accepted by the Industry and Trade Department one working day before the deadline, otherwise the application will be regarded as an overdue application.

The completed application form.
A copy of the valid business registration certificate of the applicant company.
i) For an unlimited company: a certified copy or an electronic extract copy of the application enterprise information in the business register must be issued within the last two years;
ii) For limited companies: a full copy of the most recent Companies Registry Annual Return (Form NAR1) or Incorporation Form (Company Limited) (Form NNC1) of the applicant company.
A copy of the valid Hong Kong ID card or passport of the person signing the application form on behalf of the applicant company.
Pay the original receipts and a copy of the expenses declared for subsidies, as well as copies of relevant invoices, quotations, contracts, etc. ( Must be able to display the detailed contact information of the issuing organization), and the name of the payer and the name of the applicant must be exactly the same on the receipt.

Introduction to various government-funded projects​

Technology Voucher Program (TVP)

There are ways to apply for 600,000 technology vouchers

What is a technology voucher?

Eligibility for Technology Voucher

Technology Voucher Amount

Technology Voucher Evaluation Criteria

Types of projects funded by technology voucher

How to start applying for technology voucher?

Documents required to apply for technology voucher

Technology Voucher Submission Application

Approve

Project implementation

Project completion, prepare report

Expense Reimbursement Procedures

Planning The Case

Evaluate Situation

File Case To The Court

Complete

Planning The Case

Evaluate Situation

File Case To The Court

Complete

Various government funded projects

4 top recommended government funds

Technology Voucher Scheme

BUD Special Fund-Mainland Project

BUD Special Fund-ASEAN Project

SME Marketing Fund

Introduction to various government-funded projects