Update December 2022: BUD Enterprise Support Program

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How to Apply for BUD?

Companies applying for BUD should fill out the application form online and provide the following documents for the applying company:

(i) A copy of the business registration certificate.
(ii) Copies of documents demonstrating the personal information of the responsible person/shareholder holding 30% or more ownership, such as Business Registration Department Form 1(a) or Annual Return Form (Form AR1) from the Companies Registry, etc.
(iii) Copies of documents proving that the applying company has substantial business operations in Hong Kong (please refer to Annex II for examples of proof).
(iv) Copies of documents proving the applying company’s annual turnover for the previous year (applying companies established in the current year are not required to provide this).
(v) Copies of documents proving the direct investment relationship between the applying company and the market business unit responsible for project execution in Free Trade Agreement markets, such as valid business licenses, valid contract for processing materials signed by both parties, etc. (only applicable to applications involving project execution by market units in Free Trade Agreement markets).
(vi) Brochures/print materials introducing the business/products/services of the applying company.

Is there a deadline for applying for the “BUD Special Fund”?

Currently, the “BUD Special Fund” accepts applications throughout the year, but the application deadline is subject to the availability of funds.

Can a company apply for funding for another project before completing one?

Companies can consider applying for funding for another project before completing one, as long as they do not exceed the approved number of projects (40) and the cumulative funding limit (HKD 6 million). However, they must provide information about the previously approved projects on the application form, including the project name, funding amount, and duration.

Applying companies should be aware that the progress or performance of previously approved projects may affect the approval of new project applications. The Program Management Committee will also consider the company’s capacity to manage multiple projects simultaneously, as well as the relevance and effectiveness of the projects.

What eligibility criteria do applying companies need to meet?

Companies applying for funding from the “BUD Special Fund” must meet the following eligibility criteria:

(a) Registered under the Business Registration Ordinance (Chapter 310) in Hong Kong,
(b) Non-listed companies, and
(c) Have substantial business operations within Hong Kong.

Substantial business operations refer to genuine business activities and transactions, including factors such as whether the company employs staff in Hong Kong, pays taxes, or engages in product/service transactions. Please note that companies with no substantial business or shell companies will not be considered to have substantial business operations in Hong Kong. When submitting the application form, provide the following documents as evidence:

(a) Company employee records,
(b) Company financial report records, and
(c) Records of business transactions and operations of the company.

(For detailed information on submitting documents related to substantial business operations, please refer to the “Application Guidelines.”)

Can a Hong Kong company under the umbrella of a Hong Kong or overseas listed company (non-listed) apply for funding?

Companies that are subsidiaries of listed companies, whether in Hong Kong or overseas, are considered separate legal entities from their parent companies. Therefore, as long as the subsidiary company in Hong Kong and overseas is a non-listed company, registered in Hong Kong under the Business Registration Ordinance (Chapter 310), and has substantial business operations within Hong Kong, it qualifies for applying for funding. The program is not limited to small and medium-sized enterprises (SMEs); any non-listed company registered in Hong Kong under the Business Registration Ordinance and with substantial business operations in Hong Kong is eligible to apply.

If a company is a registered listed company in mainland China, and its subsidiary is a non-listed company registered in Hong Kong, and the subsidiary in Hong Kong applies for funding under the program, but the project is implemented by the mainland China-based company (a listed company), is this feasible?

If the funded project is executed and benefits a company listed in mainland China, the funding application will not be approved.

Can eligible companies apply for funding for projects that are entirely implemented in Hong Kong?

If the project is entirely implemented in Hong Kong, it must be aimed at assisting the company in expanding and developing its business in mainland China in order to be eligible for funding.

In the project application form submitted, the company must demonstrate how the project will enhance its competitiveness in mainland China and/or promote the development of its business in mainland China through the relevant project.

Do funded projects require supervision? What are the supervisory measures?

To ensure the effective implementation of funded projects, approved projects are required to comply with the requirements stipulated by the “BUD Special Fund” during the implementation process. These requirements include:

The applying company needs to sign a designated contract with the implementing organization.

The company must provide its bank account for project fund management, and the financial transactions related to the project must undergo third-party financial auditing.

The company must submit midterm/final reports and audited accounts based on the project duration.

The implementing organization may also arrange on-site inspections for individual projects (approximately one day) to assess the progress and effectiveness of the project.

(Detailed requirements for submitting reports and audited accounts are provided in the “Application Guidelines.”)