Since the launch in Nov 2016, the Technology Voucher Programme (TVP) is so popular for SMEs to enhance productivity, operation and services. We can see abundant successful TVP examples. Now (Jun 2016) the TVP Fund offers 75% of IT projects (cumulatively HK$ 600,000) for Hong Kong eligible companies. BizMagnet TVP consultant consolidates this “TVP Fund Application – A Complete Guide” to help you understand more. Welcome to contact BizMagnet.
Eligibility
The basic requirement of the BUD Fund application:
- Valid business registration OR Hong Kong incorporated companies
- Substantive business operation
- Non-listed company OR subsidized by the government
The proof of substantive business operation includes MPF record, business agreement, invoice, receipt, audit report and taxation etc. The TVP Fund is not a start-up fund and requires a mature business establishment. If a company comes with too little revenue, no staff or no relevant experience may fail to apply the Fund.
Grant amount
An eligible firm can apply the Technology Voucher Programme for at most 6 times. For each application, the TVP Fund will sponsor 75% of the project cost. The cumulative subsidy an eligible company can get is HK$ 600,000. The Innovation Technology Commission regards companies with the same shareholder holding more than 30% of shares as one related entity (disclosed till the ultimate level of natural person). The cumulative subsidy to one related entity is same as one single entity.
Funding scope
Any IT systems that can improve productivity, upgrade or transform the business process are possible to be a TVP project. Nevertheless, the necessary parts which are readily available cannot take more than 50% of the total project cost. According to the TVP application guide, the following items are supported:
Productivity or Business Process Improvement
- Appointment scheduling and queue management system
- Augmented reality (AR) technologies system
- Big data and cloud-based analytics solution
- Building information modeling (BIM) system
- Computer Aided Design (CAD)
- Clinic management system
- Cyber security solution
- Document management and mobile access system
- Electronic inventory management system
- Electronic procurement management system
- Enterprise resource planning (ERP) solution
- Fleet management system
- Intelligent Robot (Industrial Robot and Service Robot) Applications
- Location based services (LBS)
- Logistics management system
- POS system
- Product Management System
- Quick response management (QRM) system
- Real-time manufacturing tracking system
- School Management System
- Solutions to facilitate compliance with manufacturing standards
Testing and Certification
- Energy management system (ISO 50001)
- Environmental management system (ISO 14001)
- Information security management system (ISO/IEC 27001)
- Testing Solutions for Traditional Chinese Medicines (TCM)
Environmental Protection
- Energy management system
- Waste management technologies
Vetting procedure and criteria
The application will submit to the Innovation Technology Commission (ITC) to check if the document ready, eligibility fulfilled or any ambiguity to clarify. Once completed, the application will pass to the TVP Committee for consideration. If the Committee supports the application, the Commissioner of ITC will approve the funding.
Vetting criteria
- Relevance of the proposed project to the business
- Reasonable budget
- Reasonable implementation
- Any adverse record of the supplier
Application document
- Business registration and company certificate
- Identity document of application representative
- Identity document(s) of persons own more than 30%
- Proof of substantive business
- Signed probity & non-collusive certificate
- Copy of quotations
The proof of substantive business is the MPF record, invoice, receipt, bank statement, taxation, lease etc in usual. The number of required quotations depend on the standard procurement process, and it is between 2 to 5. If the total cost is more than HK$ 1,400,000, it should proceed an open tender.
Project kick-off
The applicant can start the project on the next day of application, and submit “Declaration and Undertaking” to the ITC within 5 working days. However, if the application fails or not fully granted, the HKSAR Government is not responsible for the remaining amount. The applicant can also choose to commence the project after the approval, and needs not submit the “Declaration and Undertaking”. In general, the TVP application takes 6 months to proceed.
Disbursement
Once the TVP fund granted, the enterprise can select to accept initial payment. The first payment is 25% of the total grant. The applicant needs an independent company bank account to get the first payment, and in general most applicants select not to accept the initial payment. Once the TVP project accomplished, and the ITC has accepted the final report and the audit report, it takes about 6 weeks to receive the payment.
If you have any questions, welcome to contact BizMagnet TVP consultant.
Reference: TVP Official website