【2024 E-commerce Subsidies】What subsidies are available for opening an online store in Hong Kong? | Learn about TVP, EMF, and BUD now

Entrepreneurs and small business owners in Hong Kong, are you aware that the government offers various subsidy programs to support your business development? In this blog post, we will explore three main government subsidy programs: the Technology Voucher Program (TVP), the SME Export Marketing Fund (EMF), and the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD). We will provide you with information on the application requirements, funding criteria, application timeline, and subsidy objectives for each program, helping you choose the most suitable subsidy scheme for your business.

Table of Contents:
・TVP
・BUD
・EMF
・Summary: Which government subsidy should be chosen for an online store?

The Technology Voucher Program (TVP) is a government subsidy program aimed at encouraging small and medium-sized enterprises to enhance operational efficiency and competitiveness through the use of innovative technology. TVP is applicable to Hong Kong registered small and medium-sized enterprises, including business owners who are opening an online store.

• Must be a registered and operating small or medium-sized enterprise in Hong Kong.
• Should not have participated in the same technology adoption project within the past three years.

1. For projects costing up to HKD 50,000, at least two written quotations from suppliers are required.
2. For projects costing above HKD 50,000 up to HKD 300,000, at least three written quotations from suppliers are required.
3. For projects costing over HKD 300,000, at least five written quotations from suppliers are required.

Typically takes around 8 to 12 weeks for review.

The objective of TVP is to support enterprises in adopting innovative technology to enhance operational efficiency and competitiveness.

The funding details for TVP include a maximum funding amount of HKD 600,000, with a funding ratio of 3:1 (75% government funding, 25% self-payment by the enterprise).

Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD) is a subsidy program aimed at supporting small and medium-sized enterprises (SMEs) in participating in market expansion activities such as exhibitions and advertising campaigns to enhance brand awareness and business growth.

• The applicant must be a registered and operating small or medium-sized enterprise in Hong Kong.
• The enterprise must have a business record of at least one year.

1. Projects ranging from $2,000 to $50,000 require two written quotations.
2. Projects ranging from $50,000 to $300,000 require three written quotations.
3. Projects ranging from $300,000 to $1,400,000 require five written quotations.

The application process generally takes around 4 to 8 weeks for review.

The funding aims to support businesses in expanding their market presence and enhancing brand awareness.

The maximum funding amount is HKD 7 million, with a funding ratio of 1:1 (50% government funding, 50% self-payment by the enterprise).

The SME Export Marketing Fund (EMF) is a government subsidy program established by the Hong Kong Special Administrative Region government. Its aim is to assist local small and medium-sized enterprises (non-listed companies) in participating in local and overseas marketing promotion activities to enhance their business competitiveness.

• The applicant must be a registered and operating small or medium-sized enterprise in Hong Kong (non-listed company).
• The average number of employees in the enterprise should not exceed 100.
• The enterprise should not apply for funding that overlaps with other government subsidy programs.

• Participation in local and overseas exhibitions, trade fairs, seminars, etc.
• Production and printing of promotional materials, product catalogs, and leaflets.
• Design and development of websites, mobile applications, etc.
• Other government-approved marketing promotion activities.

• The maximum funding amount is HKD 1 million, with a maximum application amount of HKD 100,000 per project.
• The funding ratio is 1:1 (50% government funding, 50% self-payment by the enterprise).

The application process generally takes around 8 to 12 weeks for review.

If the goal is to build a fully functional online store, it is recommended to use the TVP (Technology Voucher Program) as it provides a substantial cost reduction with 75% government funding. However, the TVP application process is longer, typically taking 12 to 16 months.

If the focus is on promoting overseas markets, it is advisable to apply for the EMF (SME Export Marketing Fund). The EMF application is relatively simple, and most businesses can handle it themselves. The processing time is generally 4 to 6 months.

If there is a need to promote overseas markets with a larger budget, such as involving rental costs or hiring staff, it is highly recommended to apply for the Enterprise Support Scheme (BUD) funding. BUD allows for funding of up to HKD 1 million per application, and a maximum of 6 applications can be made, totaling HKD 6 million. Each application takes 12 to 16 months.

If you are an online shop owner or a newbie interested in starting an online shop and have questions about the process or managing an online shop, feel free to schedule a consultation with Mshop, a professional online shop consulting service.

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・【2024 TVP Guide】Application Process, Review Time, FAQs

・【2024 EMF Guide】EMF SME Promotion Funding: Eligibility, Approval Time, and Considerations

・【【2023 Government Subsidy】Digital Transformation Support Pilot Program | A Comprehensive Guide to Subsidy Details

・【2024 HK E-commerce Platform Comparison】Finding the Best Online Store Platform