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What is the BUD Fund?
Non-listed Hong Kong enterprises may apply for project funding for
branding, upgrading and restructuring or promoting sales
in the Mainland and FTA economies*
covering up to 50% of costs,
capped at HK$1 million** per project
* FTA Economies include: the 10 ASEAN member states (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Australia, Chile, the 4 European Free Trade Association member states (Iceland, Liechtenstein, Norway and Switzerland), Georgia, Macao and New Zealand
** Maximum of 40 approved projects and HK$4 million cumulative funding per enterprise
Enterprises meeting all of the following criteria may consider applying for the BUD Fund
  • Non-listed Hong Kong enterprise
  • With Hong Kong Business Registration Certificate Registered in Hong Kong under the Business Registration Ordinance Cap. 310
  • With substantive business operations in Hong Kong Documentary proof required, e.g.: tax returns, Mandatory Provident Fund pay-records, commercial contracts, invoices, etc.
  • Utilizes the funding for developing business in the Mainland and/or FTA markets not Hong Kong local market
  • Holds relevant licence/qualification/certification in the Mainland and/or FTA market as to demonstrate the viability of the project or has confirmed that such permit is not required
  • Can guarantee completion of project before receipt of final payment Indicators include: capital, manpower, administrative capability, etc.
Details on eligibility of applicants
are available on Guide to Application
Ineligible enterprises may consider
other SME funding schemes
How to Plan Your Application?

Plan on your own

Step 1
Step 1
Establish Business Development Objectives
Establish Business Development Objectives
Ensure the objectives fall within at least one of three areas in the scope of funding
Ensure the objectives fall within at least one of three areas in the scope of funding
Step 2
Step 2
Define Project Scope
Define Project Scope
Study the scope of funding and select applicable project measures for your application
Study the scope of funding and select applicable project measures for your application
Step 3
Step 3
Devise a Project Budget
Devise a Project Budget
Refer to the proportion of the project expenditure (in percentage cap) for each expenditure item, and budget each measure accordingly
Refer to the proportion of the project expenditure (in percentage cap) for each expenditure item, and budget each measure accordingly
Planning a project for the first time?
I mainly want to
for developing
Application and Grant Disbursement Process
Click to enlarge
Refer to paragraphs 3.2-5.1 and 6-7.1 of
Guide to Application for details on the application process, assessment procedures and disbursement of grant
Featured FAQ
Not needed.
The majority of applicant enterprises can organise their proposed projects and submit applications on their own. The Scope of Funding (Summary) and Budget Planning Tool provided by the Application Tips webpage, as well as the SME ReachOut “form-filling tutor” free consultation services , can help applicant enterprises complete their applications timely.
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No.
Projects facilitating business development in Hong Kong are not eligible for the BUD Fund – only projects developing the Mainland/FTA markets are eligible. Enterprises in need of extra capital may consider other SME funding schemes.
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Yes
The majority of applicant enterprises with the intention of developing the Mainland/FTA markets can simply create projects for application by adjusting their current business plans to fulfil the BUD Fund requirements.

Applicant enterprises unfamiliar with the target markets can submit Type (i) Project Applications to engage qualified service providers to help develop holistic business plans. Refer to paragraphs 1.4 and 2.2 of Guide to Application for details.
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All economies with which the Hong Kong SAR Government has signed Free Trade Agreements (FTAs) thus far (except the Mainland), including: the 10 ASEAN member states (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Australia, Chile, the 4 European Free Trade Association member states (Iceland, Liechtenstein, Norway and Switzerland), Georgia, Macao and New Zealand.
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Not necessarily – depending on the type of industry and details of the project.
In order to meet the BUD Fund application requirements, an applicant enterprise may need to set up a branch company in the target market before implementing specific measures and obtaining business licences/permits locally.

Enterprises wishing to set up a branch company in their target markets through the BUD Fund may refer to Annex 3 of Guide to Application for details.
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Some businesses (such as regulated industries or those involving product sales or dealership) may require relevant documentary proof (such as product safety inspection certificate, sales representation agreement, statutory licence, etc.) from the target market in order to operate legally. If relevant licence/qualification/certification is not obtained before submitting application, the project may be considered infeasible and rejected. In addition, projects will not be funded without documentary proof of relevant licence/qualification/certification.

Specific examples:

  • A company has already been selling products on e-commerce platforms in the Mainland, and plans to apply for the BUD Fund for this business. It lacks the relevant licences to demonstrate viability of its online sales, so although the company is already operating the relevant buisness in the target market, they could only be funded after obtaining the licences.
  • A company plans to export products to a target market. The products need to pass the testing and certification to ensure compliance with the safety standards of the target market before they can be manufactured and sold locally.
  • A company’s business involves brand or product dealership and sales. It needs to provide relevant licence(s) and dealership contract(s) in its application to prove the project’s feasibility.
  • There are also some scenarios in which applicants do not need relevant licence/qualification/certification as a prerequisite in implementing a project. For example, a company plans to set up a new factory in a target market, and it is confirmed that no documentary proof is required enter the market; the company can simply place their business registration and licence (such as certifications for regulation of food or pharmaceutical products) into their application.

The above examples are non-exhaustive. The latest licence/qualification/certification requirements are subject to the laws of the target market. In case of doubt, please contact the relevant government authorities of the target market.

* Common regulated industries include:food, medical, e-commerce, professional services (such as auditing, consulting, financial services, etc.), toys, maternal and infant products, education, publishing, etc.

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No.
The funding ceiling for each approved project is HK$1 million. Each enterprise is entitled to a maximum of 40 approved projects, and the cumulative funding ceiling for all projects is HK$4 million.

Large-scale projects may be broken down into smaller ones for subsequent application.
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Important Notes to Applicants
  • The BUD Fund Implementer (The Implementer) has not appointed or designated any consultancy companies or organizations to provide any fee charging services in relation to the BUD fund (including but not limited to assisting the enterprises to submit applications, formulation of the Holistic Business Plans and implementation of approved projects).
  • The Implementer has not recognized or endorsed the service quality and capability of any consultant/ company which had assisted the funded enterprises to formulate the business plan / implement the funded projects. Any consultancy companies or organizations claiming to be approved or designated by the Implementer for promoting or soliciting business are misleading and making misrepresentation, the applicants should report the cases to the Implementer for following up and taking appropriate actions.
  • It is the responsibility of an applicant enterprise to complete an application form timely and truthfully and to provide all supporting documents. Inaccurate and incomplete information may affect the processing of the application. Any misrepresentation or omission of information may lead to rejection of the application and/or full recovery by The Implementer of any grant which has been awarded. It is an offence in law to obtain property/pecuniary advantage by deception or assisting persons to obtain property/pecuniary advantage. Any person who does so may be liable to legal proceedings.
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