TVP Funding for dummies 2022

The Technology Voucher Programme (TVP) of the Innovation and Technology Commission (ITC) launched as a pivot programme in 2016, and became a regular programme in 2019. All eligible companies registered in Hong Kong (including individual, partnership, limited company and organization) can obtain a matching TVP fund on a 3:1 ratio (i.e. 75% of the cost) when undergoes a technology project. The applicant can commence the project after submission to TVP secretariat (HKPC). The average application time under COVID-19 is about 6 months. The company can get the fund after completes all the reports.

BizMagnet TVP consultant provides this article in 2022, based on our experience and latest situation. We hope HK SMEs can get the idea of what the TVP can help to improve productivity.

(This article is for information only and it is not an advice nor an offer. This article does not consider the particular needs of anybody. BizMagnet Limited is not responsible for any loss due to your TVP application. Please contact BizMagnet TVP consultancy for further professional advice.)

Total grant of TVP

The TVP is a funding on matching basis in the ratio 3:1. For every dollar the business paid, the Government will match 3 dollars. By simple arithmetic, it is just 75% of the project cost. The cumulative limit to every company is HK$600,000, and every company can be granted 6 projects at most. Here are 3 examples:

  1. Company A has never used any TVP fund. Now it spends HK$200,000 to purchase an e-shop system. By 75%, Company A can get HK$150,000.
  2. Company B has already obtained HK$500,000 in the past. Now it spends HK$200,000 to purchase a CRM system. By 75%, Company should have got HK$150,000. However, the remaining fund is only HK$100,000 (Upper limit HK$600,000 minus $500,000). Therefore Company B can get HK$100,000 only.
  3. Company C has an ERP system costing HK$1,000,000. By 75%, it should be HK$750,000. As the cumulative limit is HK$600,000. Therefore Company C can get HK$600,000.

The ITC has very detail market pricing on systems. All the project cost should be approved by the ITC, and the TVP will NOT cover any extra cost.

TVP eligibility

The official definition of the TVP eligibility is a bit complicated. To general businesses, it is equivalent to say: non-listed Hong Kong companies with substantive business. “Hong Kong companies” include:

  • Individual and Partnership business (aka “Unlimited company”)
  • Limited company by share (aka “Private limited company”)
  • Limited company by guarantee (usually non-profit organization or charity)

We don’t further to Hong Kong statutory bodies, as it is not related to business sector.

There is also objective measure for a substantive business. For example, employment with MPF, rental agreement for shop, office or warehouse, bank in and out, and invoicing etc. In general, holding companies have no substantive business and therefore cannot apply for the TVP.

TVP quotation requirement

According to the standard procurement process, it is required to have certain number of quotation at certain project cost. This makes sure the procurement fair.

  • Below $2,000: No written quotation
  • $2,000 – $50,000: At least 2 written quotations
  • $50,000 – $300,000: At least 3 written quotations
  • $300,000 – $1,400,000: At least 5 written quotations
  • Above $1,400,000: Open tender

It is generally required to choose the cheapest quotation. If the TVP applicant doesn’t not choose the cheapest one or doesn’t provide necessary written quotations, the applicant must provide sufficient reasons.

It is not difficulty for an eligible company, which is about to have a technology project which can enhance productivity, to apply for the Technology Voucher Programme. It should follow strictly to the standard procurement process to be successful. After the approval, keep constant communication with the responsible officer and monitor the supplier. Submit the final report and the company can obtain the TVP Fund (maximum HK$600,000). If you have any problem about TVP application, please contact BizMagnet government funding consultant.

External link: Technology Voucher Programme of the ITC