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To help Hong Kong enterprises capture the opportunities arising from the National 12th Five-Year Plan, the Hong Kong Special Administrative Region Government set up a “Dedicated Fund on Branding, Upgrading and Domestic Sales” (“the BUD Fund“) in June 2012 to assist enterprises in exploring and developing the Mainland market through developing brands, upgrading and restructuring their operations and promoting domestic sales in the Mainland.
To strengthen the support to enterprises in enhancing their competitiveness and developing diversified markets, the cumulative funding ceiling per enterprise under the BUD Fund has been increased to HK$7,000,000 and the maximum number of approved projects per enterprise has been increased to 70 in November 2022. |
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Grant Summary
Grant Eligibility
Non-listed Hong Kong enterprises may apply for project funding for branding, upgrading and restructuring or promoting sales in the Mainland other economies with which Hong Kong has signed Free Trade Agreements (FTAs) and/or Investment Promotion and Protection Agreements (IPPAs).
Supportable Costs
Any project that helps individual Hong Kong companies develop branding, upgrading and/or expand the mainland of China (Domestic sales) and free trade agreements (including ASEAN) markets can apply for funding, covering up to 50% of costs , capped at HK$1 million per project.
How to Plan Your Application?
Step 1: Establish Business Development Objectives
Step 2: Define Project Scope
Step 3: Devise a Project Budget
Step 2: Define Project Scope
Step 3: Devise a Project Budget
Application and Grant Disbursement Process
To be updated.
Important Things To Note
Do I need to apply via an intermediary agent? |
Can I apply for the Fund in order to maintain capital flow for my business in Hong Kong? |
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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 and/or IPPA markets are eligible. Enterprises in need of extra capital may consider other SME funding schemes. |
Which markets are covered under the FTA and IPPA Programme? |
Do I need to own a branch company in the target market to apply? |
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Effective from 27 June 2022, the markets covered under the FTA and IPPA Programme of the BUD Fund include the ten member states of the Association of Southeast Asian Nations (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam), Australia, Austria, Belgo-Luxembourg Economic Union, Canada, Chile, Denmark, the four member states of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland), Finland, France, Georgia, Germany, Italy, Japan, Korea, Kuwait, Macao, Mexico, the Netherlands, New Zealand, Sweden, the United Arab Emirates and the United Kingdom.
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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. |
FAQ
If my project is completely implemented in Hong Kong, can I apply?
Yes, but more difficult – the applicant enterprise must demonstrate that the business nature is reasonable and the project can be remotely executed.
The applicant enterprise should provide clear justifications and evidence in the application to show that the project is reasonable and feasible, and establish direct relationship between the project and the enterprise’s development and competitive enhancement in the target market.
Yes, but more difficult – the applicant enterprise must demonstrate that the business nature is reasonable and the project can be remotely executed.
The applicant enterprise should provide clear justifications and evidence in the application to show that the project is reasonable and feasible, and establish direct relationship between the project and the enterprise’s development and competitive enhancement in the target market.
Can I hire new employees in Hong Kong to implement the project?
Yes.
Applicant enterprises can hire new employees in Hong Kong or the target market and be funded, as long as they demonstrate in their applications that the additional manpower is directly recruited to implement these projects in full capacity.
The normal operating expenses of an enterprise are outside the scope of funding. If the duties of a new employee include the normal operations (such as daily administrative work, auditing, etc.) of an existing or newly established business unit, the salary of such employee will not be funded.
Yes.
Applicant enterprises can hire new employees in Hong Kong or the target market and be funded, as long as they demonstrate in their applications that the additional manpower is directly recruited to implement these projects in full capacity.
The normal operating expenses of an enterprise are outside the scope of funding. If the duties of a new employee include the normal operations (such as daily administrative work, auditing, etc.) of an existing or newly established business unit, the salary of such employee will not be funded.
Can I be funded for the salary of a current employee who is implementing the project?
No.
The salary of existing employees are not within the scope of funding, as they belong to normal operating expenses of the business unit. Additional manpower directly recruited for the project can be funded by the BUD Fund, but the applicant enterprise must declare that such additional manpower is recruited for implementing the project.
No.
The salary of existing employees are not within the scope of funding, as they belong to normal operating expenses of the business unit. Additional manpower directly recruited for the project can be funded by the BUD Fund, but the applicant enterprise must declare that such additional manpower is recruited for implementing the project.
If my product/service is ultimately sold or promoted outside the target market, can I apply for funding?
No.
Projects involving products/services that are ultimately unavailable in the target market will not be funded.
In order to be funded by the BUD Fund, the project must help an enterprise to:
(a) kickstart development in the target market;
(b) enhance competitiveness of their products/services there; and
(c) achieve immediate and long-term development in the target market.
No.
Projects involving products/services that are ultimately unavailable in the target market will not be funded.
In order to be funded by the BUD Fund, the project must help an enterprise to:
(a) kickstart development in the target market;
(b) enhance competitiveness of their products/services there; and
(c) achieve immediate and long-term development in the target market.
Next Steps |
Find out how our grant consultants can help your company secure the grant here.
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