BUD Funding
The BUD fund sponsors SMEs to upgrade, transform and develop their brands to expand the ASEAN and Mainland China markets.
The 2018-19 budget proposes to expand the geographical scope of the "BUD Special Fund" to the ASEAN market, launching the "ASEAN Plan", and increase the funding cap for individual enterprises to implement projects to expand the Mainland China market (the "Mainland Plan"). The Legislative Council Finance Committee approved the proposal in June 2018 with a $1.5 billion injection.
A new round of optimization measures for the BUD special fund has been implemented on January 20, 2020
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Through expanding geographic scope of the "BUD Special Fund" to cover all economies that have signed free trade agreements (FTAs) with Hong Kong*
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Increase the cumulative funding cap for each enterprise to 4 million yuan, including 2 million yuan for the implementation of mainland projects and 2 million yuan for the implementation of projects in ASEAN and other free trade agreement economies
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Increase the initial funding ratio from 25% to as high as 75% of the total approved government funding
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Exemption from the requirement for subsidized enterprises to open and maintain a separate interest-bearing account and deposit equivalent funds into the account before receiving the initial payment
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All projects (including those that choose to apply for the first instalment) can be started after submitting the application form to relax the upper limit of the budget ratio of individual expenditure items (including purchasing/renting additional machinery/equipment, making samples/prototypes,
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Includes Trademarks, patents (design/utility model patent registration)
*Including Mainland China, New Zealand, EFTA 4 countries (i.e. Iceland, Liechtenstein, Norway and Switzerland), Chile, Macau, ASEAN 10, Georgia and Australia.
Funding scope
Any projects that help individual Hong Kong enterprises to develop their brands, upgrade their transformation and/or expand their markets in Mainland China and FTA economies can apply for funding.
In order to encourage Hong Kong enterprises to enter the mainland market, the government has set up a special "BUD Fund" (Dedicated Fund on Branding, Upgrading and Domestic Sales) to provide financial support to assist Hong Kong enterprises to explore business opportunities, while the Mainland plan It is one of the plans under the fund; in order to cooperate with the development of the two places, strengthen the economic cooperation between the Mainland and Hong Kong and Macao, and at the same time help Hong Kong enterprises to enhance their own competitiveness and e Eligibility to apply for BUD special fund
All unlisted companies registered in Hong Kong under the Business Registration Ordinance (Cap. 310) and having substantial business operations in Hong Kong are eligible to apply for funding. Regardless of whether they are engaged in manufacturing or service industries, or whether they already have business operations in Mainland China and ASEAN, they are all eligible to apply for the subsidy.
Maximum funding amount per project
Special Funds for Brand Development, Upgrading and Transformation and Expanding the Domestic Market – The Enhanced Mainland Plan and the ASEAN Plan are each HK$1 million positive.
Funding is provided on a reciprocal basis, that is, the government will subsidize up to 50% of the total approved expenditure of an individual project, and enterprises must bear no less than 50% of the total approved expenditure of the project in cash. That is, when applying for enterprise expenditure of 500,000 yuan, the government will also subsidize 500,000 yuan; if applying for enterprise expenditure of HK$1 million .
Document Required for BUD application
1. The software file of the application form. (MS word format, Chinese or English version)
2. original copy of the application form signed by the authorized person of the applicant company and stamped by the company.
3. Other supporting documents.
A copy of the business registration certificate of the applicant company.
• Copies of supporting documents for the information of the major shareholders of the applicant company.
• (eg: Annual Return Form AR1 issued by the Companies Registry)
• Copies of documents proving that the applicant enterprise has substantial business operations in Hong Kong.
• Copies of documents proving that the applicant enterprise has a direct investment relationship with a mainland business unit.
