Hong Kong Funds for Doing Business in International Markets
The Hong Kong government launched the "Dedicated Fund on Branding, Upgrading, and Domestic Sales" (BUD Fund) with HK$1 billion to support local enterprises exploring Mainland and other markets involved in the FTA agreement and IPPA programme. In mid-2023, they introduced "Easy BUD" to streamline applications for projects under HK$100,000, focusing on three areas: branding, upgrading, restructuring, and domestic sales.
Type of project
Projects aiding individual non-listed Hong Kong enterprises in boosting competitiveness and fostering Mainland business development, are eligible for funding. This includes "Type (i) Project," where qualified service providers are engaged in developing holistic business plans in the three areas. Additionally, "Type (ii) Project" covers projects implementing specific measures in these areas by the applicants or their engaged agents to enhance competitiveness and support business development in the Mainland.
Funding Amount and Principles
The funding operates on a matching basis, with the government covering up to 50% of the total approved project cost and the enterprise contributing a minimum of 50% in cash. The government fully supports the audit fee, capped at HK$10,000 per audit, counted toward the cumulative funding ceiling per enterprise of HK$7,000,000. The funding ceiling for each approved project is HK$1,000,000. Each enterprise can receive funding for a maximum of 70 approved projects and approved projects must be completed within 24 months, with no extension allowed. Moreover, the rpogramme is open for application all year round.
All non-listed enterprises registered in Hong Kong under the Business Registration Ordinance with significant business operations in Hong Kong, regardless of their sector or existing Mainland operations, are eligible to apply. However, enterprises with most operations outside Hong Kong or functioning as shell companies are not considered to have substantive business operations in Hong Kong. The applicant must furnish documentary evidence of its substantial business operations in Hong Kong during the application. If the project involves the implementation of the Mainland entity, the applicant must provide proof of its direct investment relationship with the Mainland entity.