10 Common Questions About Applying for BUD Special Fund
1. What are the eligibility criteria for Hong Kong companies applying for the "BUD Special Fund"?
To apply for the “BUD Special Fund,” your company must meet the following criteria:
(a) Your company must be a non-listed company registered under the Companies Ordinance of Hong Kong.
(b) Your company must have actual business operations in Hong Kong.
The term “actual business operations” refers to the company’s real operations and commercial transactions in Hong Kong. When evaluating, we will consider factors such as the number of full-time/part-time employees hired in Hong Kong, the company’s tax records, and transaction records related to the company’s products or services. Companies that are merely shell companies without operations will not meet the conditions for the BUD Special Fund.
When you submit your application, please make sure to include the following supporting documents to assist us in the assessment:
(a) Employee information and related documentation for your company. (b) Financial reports and financial documents for your company. (c) Records of transactions related to your business activities.
We hope this information is helpful! If you have any further questions or need additional assistance, please feel free to let our BUD consultants know.
2. Which industries are eligible to apply for funding under the "BUD Special Fund"?
The program is not specific to any particular industry, and any enterprise aiming to expand into the Chinese mainland market has the opportunity to receive funding. The key is that the proposed projects must focus on brand development, upgrading and transformation, and/or expanding the domestic market.
Here are some specific examples:
Clothing Brand: Suppose you are a fashion brand based in Hong Kong and want to enter the consumer market in mainland China. Through this program, you can receive financial support for brand building, market research, and opening physical or online stores in mainland China.
Tech Start-up: A company specializing in smart home solutions aims to introduce its products to households in mainland China. They can apply for the BUD Special Fund to upgrade their products and promote them in the market, thereby expanding their business.
Traditional Food Manufacturer: Imagine a long-established bakery in Hong Kong that wants to bring its traditional flavors to the mainland market. With funding from this program, the bakery can undergo brand revitalization, create online promotional videos, and organize various promotional events in the mainland.
These are just some basic examples, and in reality, as long as your business has clear goals and plans, you have the opportunity to receive support from the BUD Special Fund. We hope this information is helpful, and if you have any further questions, please feel free to reach out to us.
3. If our company does not have any business activities in mainland China/FTZ, can we still apply for this subsidy?
Certainly, you can. As long as your company is formally registered in Hong Kong under the Business Registration Ordinance (Chapter 310) and has actual business activities in Hong Kong, even if you do not currently have any operations in mainland China or FTZ areas, you are still eligible to apply for this subsidy as long as you have the intention to develop the mainland China market. I hope this clear guidance is helpful!
- Health Food Company: For example, if you operate a health food company registered in Hong Kong that primarily sells organic juices and natural nutritional supplements, even though you are currently only operating in the Hong Kong market, you see potential in the increasing demand from mainland China consumers for health food products. Therefore, you wish to apply for BUD funding to enter the mainland China market. Even if you do not have any business in mainland China yet, because your company has substantial operations in Hong Kong, you can still apply for this subsidy.
- Fashion Clothing Brand: Suppose you have founded an original fashion clothing brand in Hong Kong with unique designs and collections every season. While your main sales points are currently only in Hong Kong, considering the passion for fashion among young people in mainland China, you want to expand your business there. Hence, you plan to apply for BUD funding to help you open new stores or promote your brand locally.
- Home Decor Company: You own a highly popular home decor company in Hong Kong that offers a wide range of interior decoration and home products. With the rapid growth of the middle class in mainland China in mind, you believe it’s an opportune time to expand your business to mainland China. Although you do not currently have any operating points there, you hope to enter that market with the assistance of BUD funding.
These examples should help you gain a clearer understanding of the types of businesses that are eligible for the subsidy.
4. Yes, our company can apply for new funding projects even if the current subsidy project has not yet been completed.
Certainly! However, there are some points to keep in mind:
Ensure that your application does not exceed the approved project quantity limit of 70 projects and the total funding amount limit of HKD 7 million.
For the “BUD Special Fund,” there should be a minimum gap of 6 months between new applications. However, if you opt for the “General Application” method, there is no such time restriction.
Please note that the execution status of your currently approved subsidy projects may affect the results of your new application. The Program Management Committee pays special attention to whether the company has the capacity to execute multiple projects simultaneously and the relevance and benefits among these projects.
Examples:
- Fashion Brand: Suppose you received BUD Special Fund support six months ago to open a new retail store. Now, you want to apply for funding again to launch a brand new online sales platform. As long as you meet the above conditions, you can apply for funding again before completing the store opening project.
- Tech Company: Your company previously received funding to develop a new mobile app. Now, you plan to develop a related desktop version. You can submit another funding application before the mobile app development is fully completed, provided you meet the conditions.
I hope these explanations bring more clarity! If you have any further questions, please feel free to ask.
5. We plan to run advertising campaigns and wonder if advertising expenses can be supported by the "BUD Special Fund"? If so, are there any related funding limits or requirements?
Advertising plays a crucial role in business development. For the “BUD Special Fund,” advertising expenses, whether for television, radio, newspapers, online, or outdoor advertising, can indeed be eligible for support.
However, if your company chooses to apply for this support through the “General Application” route, there is a set upper limit for advertising budget expenditure, which is 50% of the total project budget. This means that if your planned total budget is 1 million Hong Kong dollars, then advertising expenses should not exceed 500,000 Hong Kong dollars.
Advertising expenses refer to the costs that a company incurs to promote its products or services. It can cover various forms of promotion and advertising, such as:
- Television Advertising: Advertisements aired on television targeting specific audiences.
- Radio Advertising: Audio advertisements or mentions broadcast on radio stations.
- Newspaper Advertising: Printed advertisements published in daily newspapers, magazines, or periodicals.
- Online Advertising: Promotions conducted on websites, social media platforms, or through email.
- Outdoor Advertising: Includes posters, banners, electronic screens, and other forms of advertising in public spaces.
The BUD Special Fund may provide partial funding for these advertising expenses, but there might be certain limits or other condition restrictions as per the guidelines. This means that when applying for funding, companies must ensure that their advertising strategy and budget comply with the funding standards and regulations of the BUD Fund.
Application process for BUD special funds
Understand the development needs of customers and
Its business model
Formulate application strategy and budget
Submit application and assist in application matters
Monitor project progress
Assist in completing the final results report