BUD

BUD
Use of Funding
Application Tips

BUD

The BUD fund provides funding support to individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and promote sales in the Mainland market and economies with which Hong Kong has signed Free Trade Agreements (FTAs), so as to enhance their competitiveness and facilitate their business development in the Mainland and FTA markets.

With effect from 20 January 2020, the cumulative funding ceiling per enterprise has been increased from $1,000,000 to $2,000,000 for both Mainland programme and FTA programme, the government has even launched enhancement to allow an early distribution of some funding in a bid to alleviate the financial burden of enterprises.

Companies and institutions (except listed companies) that meet the following conditions can apply: 

  • Registered in Hong Kong under the Business Registration Ordinance (Cap. 310); or
  • Unlisted companies of all sizes; or
  • Had substantive business operations in Hong Kong at the time of making the application.
  • If an application involves project implementation by the Mainland entity of the applicant, the applicant shall fulfill one of the following criteria:
         a)   the applicant (enterprise) holds more than 50% shareholding of the Mainland entity; or
         b)  one individual shareholder (natural person) with at least 30% shareholding of the applicant holds more than 50% of the shareholding of the Mainland entity.
         c)   the same group of shareholders (natural person) of the applicant together holds 100% of the Mainland entity.

Source: Trade and Industry Department, Dedicated Fund on Branding, Upgrading and Domestic Sales

(https://www.bud.hkpc.org/)

Use of Funding

Major Funding uses:

  • Online e-commerce platform
  • Establish/ Enhance company website
  • Develop Mobile applications (for promotion) (Not to exceed 50% of the total project expenditure
  • Recruit additional manpower (Not to exceed 50% of the total project expenditure)
  • Purchase of machines , equipment and moulds (Not to exceed 50% of the total project expenditure)
  • Product sample (Not to exceed 20% of the total project expenditure)
  • Project-related advertisement (Not to exceed 50% of the total project expenditure)
  • Exhibitions and promotional campaigns, relevant transportation and accommodation expenses (Not to exceed 20% of the total project expenditure)
  • Design/ Produce promotional materials
  • Testing and certification
  • Project-related patents and trademark registration (Maximum cumulative amount HK$170,000)
  • External audit fee for approved projects (Maximum amount HK$ 10,000 per audit, fully reimbursable, counted towards the enterprise’s cumulative funding ceiling)

Application Tips

Each enterprise could receive funding for maximum 20 items, and the cumulative funding ceiling is HK$ 2,000,000 

Selection Criteria includes: 1. Projects are benefits for expanding businesses among ASEAN markets or Mainland markets 2. Projects can leverage the advantage of the products/ services provided by enterprises in the ASEAN markets or Mainland markets. 3. Projects are practical and the effectiveness can be measured quantitatively 4. The budgets of projects are clear and reasonable.

Enhanced BUD fund covers regions such as Mainland, ASEAN and other markets which Hong Kong has signed Free Trade Agreement (FTAs) . The member states of the ASEAN are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam; Other foreign economies who have signed FTAs with Hong Kong include New Zealand, the four member states of the European Free Trade Association (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macao, Georgia and Australia.

The initial payment of the enhanced BUD fund is set to be 75% of the total disbursement of funds.

Funding does not cover the normal operating expenses of the enterprises, including the salaries of the existing employees, rent, renovation, utilities, business registration, office supplies, bank charges, day-to-day equipment such as computer software, camera, projects and printers.