The entrepreneurial journey is fraught with challenges. Among these, one of the most critical and often daunting—beyond product development or market expansion—is the fundamental question: “Where will the funding come from?”
Common financing avenues include private loans (fast but risky), equity issuance (which can bring in both capital and strategic partners’ networks and resources), or bank loans (which test the company’s creditworthiness and business logic). However, for Hong Kong enterprises seeking a reliable and supportive funding source, there is another highly valuable option: the BUD Special Fund.
What is the BUD Special Fund?
The BUD Special Fund , fully known as the “Dedicated Fund on Branding, Upgrading, and Domestic Sales,” is a subsidy scheme established by the Hong Kong government to support local enterprises in expanding into the Mainland market and economies with which Hong Kong has signed Free Trade Agreements (FTAs). Since its inception in 2012, the fund has evolved from an initial focus on the Mainland to cover a broader range of international markets. It has become a vital financial tool for companies pursuing market diversification and adapting to fluctuations in the global trade environment.
The core value of the BUD Special Fund lies in alleviating the initial cost pressures businesses face when entering new markets. Especially amid frequent shifts in the global trade landscape, many companies are actively seeking transformation and diversification to mitigate the impact of tariffs and trade barriers. This fund serves as a robust support mechanism in such efforts.
Eligibility: Is Your Enterprise Qualified?
The BUD Special Fund is divided into two main categories: the “Mainland Programme” and the “Free Trade Agreement & Investment Agreement Programme.” The former targets enterprises interested in entering the Mainland China market, while the latter applies to those planning to expand into overseas markets (particularly economies with which Hong Kong has FTAs). The application process and basic requirements are largely similar for both.
A. Basic Eligibility Criteria:
Must be legally registered in Hong Kong under the Business Registration Ordinance (Chapter 310);
Must be a non-listed enterprise with substantive operations in Hong Kong;
Must demonstrate genuine business activities and transactions; shell companies are not eligible.
B. Required Documents for Application:
Employee records (e.g., MPF contribution statements, employment contracts);
Financial reports (most recently audited financial statements and tax returns);
Proof of business operations (e.g., invoices, receipts, business contracts).
Funding Scope and Project Types
The BUD Special Fund aims to enhance enterprises’ overall competitiveness through branding, upgrading, or domestic sales expansion. Each company may apply for funding for up to 70 projects, with a maximum grant of HK$800,000 per project. Eligible projects must fall under at least one of the aforementioned categories, and there are no industry restrictions.
Furthermore, the fund’s guidelines specify two main types of qualifying projects:
A. Formulating a “Comprehensive Business Plan”:
Enterprises may engage qualified service providers to develop a holistic business plan for brand development, upgrading, or domestic sales expansion, with the goal of systematically enhancing competitiveness in the target market.
B. Implementing Specific Projects under the Plan:
Enterprises may carry out specific initiatives related to branding, upgrading, or market expansion either independently or through appointed agents. Note that such applications must not include research-oriented tasks such as market studies or plan formulation. If the company lacks sufficient understanding of the target market, it should first undertake relevant planning and consider applying under the first project type.
It is important to note that these two project types cannot be submitted in the same application; they must be applied for separately. Additionally, project designs should align with the company’s long-term development strategy and demonstrate achievable commercial benefits.
Application Advice and Strategy
Given the relatively complex application process—which involves extensive documentation and proposal preparation—enterprises are advised to plan ahead and prepare supporting documents in advance to expedite review. For SMEs with limited resources, engaging professional consultants can not only improve the chances of approval but also ensure that project proposals meet the fund’s requirements and align with the company’s long-term goals.
The HONIK Biz funding advisory team possesses in-depth knowledge of various government funding assessment procedures and strategies. We help clients shorten approval times and increase application success rates. Whether your enterprise is a startup or an established company, if you meet the eligibility criteria and are planning to expand into the Mainland or international markets, consider including the BUD Special Fund in your financing strategy. Leverage this resource to power your business upgrading and growth.
