As digital transformation becomes a global business trend, Hong Kong enterprises are also embarking on this digital journey. However, for many small and medium-sized enterprises (SMEs), the high cost of transformation is undoubtedly a significant burden. Fortunately, to encourage SMEs to innovate with technology, the Innovation and Technology Commission (ITC) of Hong Kong has launched the Technology Voucher Programme (TVP) to provide valuable financial support to these enterprises.
Each company can receive up to HK$600,000 in funding, with a maximum of six approved projects. Only one project can be applied for at a time, and each project implementation period cannot exceed 12 months. The government will cover up to 75% of the project cost, and the enterprise or organization needs to cover the remaining 25%.
In simple terms, the government will fund up to HK$600,000, which you can use to purchase technology equipment, services, or carry out technology projects, helping you undergo a tech transformation without financial worries.
The TVP funding amount can reach up to HK$600,000, which is a considerable sum for businesses. However, for SME owners who wish to undergo digital transformation but are not familiar with technology, the first question might be: "What kind of project should my company apply for to use the TVP and benefit from this policy?"
If you are planning to upgrade your technology but are concerned about funding, take a look at our guide. We have prepared a 2024 TVP cheat sheet for you, using the most straightforward methods to teach you how to easily apply for the TVP and smoothly embark on your digital transformation journey.
What projects are eligible for TVP funding?
As mentioned above, what kind of projects are eligible for TVP funding? In fact, the scope of the TVP is quite broad. Various industries, including physical retail stores, online stores, electronics stores, pharmacies, wholesalers, and restaurants, can benefit from this program. Enterprises can use this funding to develop e-commerce platforms, POS retail management systems, customer relationship management (CRM) systems, and more. There are many methods, and here are some examples of TVP project applications:
Examples of TVP project applications
Clothing Stores: Introduce a POS system and CRM system to update sales data and inventory status in real time, record customer purchase history and preferences, push personalized promotional information and member offers, and increase customer repurchase rates.
Electronics Stores: Set up a fully functional e-commerce website that supports online shopping and offline pickup, enhancing shopping convenience and sales performance.
Cosmetics/Skincare Stores: Build an online sales platform and member app to support online orders and multi-store offline pickup, expanding sales channels.
Health Products Retail/Wholesale: Construct an online store and physical store POS system, integrating online and offline operations, managing customer data and purchase records, providing personalized nutrition advice and product recommendations.
Beauty Spa: Offer online booking services, allowing customers to book and pay in advance through an app, reducing waiting times and optimizing staff efficiency. Establish a membership points system to encourage customers to redeem points for rewards and discounts, increasing customer return rates.
Cafes: Design a mobile app that provides online ordering and reservation services, enabling customers to order and pay in advance through the app, reducing waiting times and enhancing the dining experience.
Restaurants: Create a cloud kitchen POS system that allows guests to order via a mobile app, saving manpower; and design a consumer rewards program to increase customer loyalty.
It is important to note that if a company purely wants to purchase or replace equipment for daily operations, including but not limited to computers, copiers, office furniture, surveillance facilities, office software, or to advertise products and services, or pay for employee salaries and venue rentals, these expenses are not eligible for TVP funding. Unless the equipment, software, and services are an essential part of the funded project, they may qualify for funding. Be sure to pay attention to this!
What are the eligibility criteria for applying for the TVP Technology Voucher?
To apply for the TVP Technology Voucher, enterprises or organizations must meet the following criteria:
- Hong Kong Registered Company: The applicant company must be registered in Hong Kong and hold a valid Business Registration Certificate.
- Non-listed Company or Government-funded Institution: The applicant must be a non-listed company and not a government-funded institution in Hong Kong.
- Substantial Business Operation: The company must have a substantial business operation prior to the application and be able to provide relevant supporting documents.
If you meet the above conditions, you can start preparing your application!
What documents are required to apply for the TVP Technology Voucher?
Before applying for the TVP Technology Voucher, you need to prepare the following documents:
- A certified copy of the Annual Return (Form NAR1)
- Copies of supporting documents for substantial operation in Hong Kong for the past three months
- Copies of quotations submitted by bidders
- A copy of the valid Hong Kong Identity Card or passport of the person representing the company in the application
- A signed copy of the Declaration of Integrity and Non-collusive Quotation/Tender Confirmation
Overall, the entire process from preparation to final funding and project completion usually takes 3 to 6 months. The application materials are actually not complicated. Remember, be well-prepared before applying, ensure all materials are complete, which can greatly increase the success rate of your application!
Application Process
The next step is the specific application steps:
- Fill in the application form: Fill out the application form online through the Technology Voucher Program Management System. This step is very simple, and the system will provide guidance.
- Upload documents: Upload all prepared documents to the system.
- Wait for approval: The Innovation and Technology Commission will review your application, which usually takes 6-8 weeks. Be patient.
- Sign the agreement: If your application is approved, you need to sign the funding agreement with the Innovation and Technology Commission.
- Implement the project: Implement the project according to the agreement requirements and keep relevant records.
- Submit reports: After the project is completed, submit the final report and audit report.
Obtaining Quotations
To ensure the success of your application, it is recommended that you obtain project quotations from at least two suppliers. This not only allows for price comparison but also shows that your application is well-considered.
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Posify has experienced professional store setup experts who have assisted numerous businesses in digital transformation, many of which have received high funding. If you want to learn more about applying for the TVP Technology Voucher, you can schedule a free consultation with a Posify professional consultant.
