Eligibility and Application Details
The BUD Fund offers a funding amount of up to HKD 7 million, covering various business development projects such as hiring employees, purchasing machinery, advertising and promotion, trademark and patent registration, etc. However, the success rate of BUD applications is one of the lowest among common funding schemes. According to the Legislative Council documents, the approval rate of the BUD Fund is only about 35%. Moreover, the application process for BUD is lengthy, usually taking about 6 months. Unfortunate rejection of an application can also consume a lot of time and manpower.
Therefore, companies must be well-prepared when applying for the BUD Fund to increase their chances of success with one shot.
01
Non-listed companies registered in Hong Kong under the Companies Ordinance (Chapter 310
03
Having existing business in the target overseas market or preparing to develop business locally
02
Non-listed companies with substantive business operations in Hong Kong
04
The proposed project content has not received any other government funding
Funding geographical coverage
Mainland China, Free Trade Agreement (FTA) and Investment Agreement (IA) economies
Europe
Austria, Belgium-Luxembourg Economic Union, Denmark, Iceland, Liechtenstein, Norway, Switzerland, Finland, France, Georgia, Germany, Italy, the Netherlands, New Zealand, Sweden, and the United Kingdom
Japan, South Korea, Kuwait, Macau, United Arab Emirates
The Americas and Oceania
Asia
Mainland China
Australia, Canada, Chile, Mexico, New Zealand
Southeast Asia
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam
Eligible projects and details
Maximum funding ratio
The related expenses for establishing a new business unit in the target market include operation license application, rent, renovation costs, non-routine office equipment, and expenses for water, electricity, and gas.
The expenses incurred for the existing established Hong Kong and target market companies
20%
Hiring personnel directly related to the project in Hong Kong or the target market incurs expenses such as employee salaries, recruitment advertising, and mandatory provident fund contributions.
The expenses related to existing employees
50%
The expenses for project-specific and specialized machinery/equipment include the costs of acquiring, installing, and maintaining the required machines or equipment that are specifically dedicated to the project and possess special functionalities.
The expenses for general office equipment such as computers, printers, and photocopiers, as well as insurance fees for existing equipment and machinery.
70%
The direct expenses related to sample production or purchase in the project are included.
The direct expenses for precious metal materials, such as gold and diamonds used for jewelry samples.
30%
The direct expenses for advertising, including television advertisements, magazine ads, Google ads, Facebook ads, WeChat ads, TikTok ads, and other platforms, are included. The costs associated with spokespersons or Key Opinion Leaders (KOLs) are also eligible for reimbursement.
Advertising expenses targeting markets other than the project's target market, and in most cases, advertising expenses in Hong Kong, are typically not eligible for funding or reimbursement.
50%
The direct expenses associated with participating in trade shows include rental fees, booth setup costs, logistics expenses, and exhibition insurance fees.
Personal insurance expenses for exhibitors
No Upper Limited
The expenses related to building or optimizing the company website. The website should target the specific market and include the primary language used in that market
The expenses related to the daily maintenance of the existing website
UP TO
$100k
The expenses related to building or optimizing the company website. The website should target the specific market and include the primary language used in that market
The expenses related to the daily maintenance of the existing website
No Upper Limited / Up to $100k for website optimization
The expenses related to developing a mobile application (app) for promotional purposes
The expenses related to the daily maintenance of the existing mobile application (app)
50%
The expenses for creating promotional materials to expand the target market, including the design fees for posters, flyers, and brochures.
The existing expenses for promotional materials and the cost of distributing valuable giveaways.
NO UPPER LIMITED
The testing and certification fees required for selling in the target market.
The testing and certification fees unrelated to the target market or not relevant to the project.
NO UPPER LIMITED
The trademark and patent registration fees related to the project.
The expenses related to the renewal of trademark or patent registration
UP TO
$600k
The auditing fees for the BUD project.
The expenses related to annual financial auditing for the company
$10k
除上述項目外，在香港及目標市場舉辦或參與的宣傳活動開支，如產品發佈會及科技採購或授權使用費開支亦可獲得資助
Application process
Application Submission
You will need to fill out an online application form and provide the necessary documents and supporting materials to the Secretariat of the BUD Special Fund (Hong Kong Productivity Council) for review and approval. It is important to ensure that all required documents and information are included in the application, as incomplete submissions may not be accepted. Once the application is submitted, any changes or amendments to the project scope or budget cannot be made unless approved by the Hong Kong Productivity Council.
Upon receipt of the application, BUD will send a confirmation email and provide an application reference number.
Application Approval
The Hong Kong Productivity Council will conduct a preliminary review upon receiving the application documents. Within approximately 2 to 4 weeks, the Productivity Council will send a notification letter via email, requesting the company to submit additional documents and information. Additionally, the Productivity Council may make phone inquiries regarding the business situation and application details. Once all the documents are complete, the application will be submitted for review by the interdepartmental government committee and the Program Management Committee. The review process may take around 3 to 4 months.
Project Execution
The earliest start date for the project is the day after submitting the application form. The company can begin executing the project on or after this date without waiting for the approval result. However, the applicant also has the option to start the project after receiving approval. If the application is approved, the Hong Kong Productivity Council will sign a contract with the company and disburse 75% of the initial funding (if applicable). However, if the application is not approved, no expenses can be reimbursed. The maximum duration for project implementation is 24 months.
Final Report
Within 2 months after project completion, the company is required to submit the final report, audit report, and relevant documents and supporting evidence. The approval process for the final report typically takes around six months or longer. Once the final report is approved, the applicant company can receive the remaining subsidy amount.
