MGT Limited - BUD專項基金申請服務

BUD Funding

Each Hong Kong non-listed company is eligible to apply for up to 50% funding, capped at HKD 1 million per project, for initiatives related to brand development, upgrading and transformation, and expanding marketing efforts in Mainland China, Free Trade Agreement, and Investment Agreement economies.

Comprehensive upgrade of business

Brand Development

Registering the brand trademark, designing the brand image, optimizing the company website, etc.

Upgrading and transforming

Automating production, introducing new technologies, product innovation, etc.

Market Expansion

Participating in trade shows, promotional events, establishing sales channels, etc.

Two Plans for You to Choose From

BUD Funding

Mainland plan

Subsidize individual Hong Kong enterprises to implement projects related to brand development, upgrading and transformation, and expanding domestic sales, thereby enhancing their competitiveness in the mainland and promoting their business development in the mainland.

BUD Funding

Free Trade Agreement and Investment Agreement Program

The BUD special fund supports local enterprises to cope with challenges, injecting HK$1 billion to expand funding areas to free trade agreement economies. The government injected 1.5 billion yuan and launched optimization measures. Starting from 2023, funding areas will cover 37 economies, including Southeast Asian countries, Australia, Japan, etc.

Up to HKD $700 million of funding amount

Each non-listed company in Hong Kong can apply for up to 50% funding, not exceeding HKD 1 million per project, for initiatives related to the promotion of brands, upgrading and transformation, and expanding marketing in Mainland China, Free Trade Agreements economies, and Investment Agreements economies.

BUD Funding Process

Application for BUD Fund

The team will verify all required documents for the BUD fund, including company operational documents, supplier quotations, and eligibility criteria, to avoid any errors or omissions that may delay the application process.

BUD Fund Review

The authority will review the eligibility and feasibility of the BUD fund application. The team will provide consultation and advice, including addressing any technical issues.

Approval of BUD fund

Once the BUD fund application is approved, the authority will notify the applicant in writing, and a funding agreement will be signed.

Implementation of BUD Project

The approved BUD fund project must be implemented within twelve months. The team will assist in monitoring the progress and implementation.

Submission of BUD fund Report

After the project is completed, the applicant needs to submit progress reports covering the first 12 months of project implementation and annual audited financial statements to the authorities. The team will help ensure the accuracy of the documents to minimize delays in the approval process.

Disbursement of Funding

If the project report is accepted by the authority, the approved funding will be disbursed to the applicant, completing the entire process of applying for the BUD fund.

Let MGT assist you in applying for BUD fund

Schedule a 15-minute conversation with us immediately.

Frequently Asked Questions

BUD Fund?

To assist Hong Kong enterprises in seizing the opportunities presented by China's "Twelfth Five-Year Plan," the Hong Kong Special Administrative Region Government launched the Dedicated Fund on Branding, Upgrading, and Domestic Sales (BUD Fund) in June 2012. The fund aims to help businesses develop brands, upgrade and transform, and expand into the domestic market, thus facilitating their business development in Mainland China. In August 2018, the government expanded the geographical scope of the BUD Fund to include the markets of the Association of Southeast Asian Nations (ASEAN). Subsequently, in January 2020, the fund's coverage was further extended to encompass other economies that have signed free trade agreements (FTAs) with Hong Kong, aiming to assist enterprises in seizing economic opportunities. Starting from July 2021, the government introduced phased optimization measures, including expanding the geographical scope of funding to cover all economies that have signed investment promotion and protection agreements (IPPAs) with Hong Kong. To enhance support for enterprises in enhancing their competitiveness and developing diversified markets, starting from November 2022, the cumulative funding ceiling for each enterprise under the BUD Fund has been increased to HKD 7 million, and the approved project limit per enterprise has been increased to 70.

Eligibility?

All non-listed companies registered in Hong Kong under the Business Registration Ordinance (Chapter 310) and conducting substantial business operations in Hong Kong are eligible to apply for funding. Whether they are engaged in manufacturing or service industries, or have business operations in Mainland China, free trade agreement or investment agreement economies, they are all eligible to apply for funding.

Funding Amount?

Funding is provided based on the principle of cost-sharing, where the government will fund up to 50% of the approved total expenditure for individual projects, and the company is required to contribute at least 50% of the approved total expenditure in cash. During the application period, each company is eligible for a maximum of seventy approved projects and a cumulative funding ceiling of HKD 7,000,000.

Funding Scope?

Funding is available for any projects that contribute to individual Hong Kong enterprises in terms of brand development, upgrading and transformation, or expansion into the Mainland, free trade agreements, or investment agreements.

Project Duration?

The maximum duration for a project is 24 months. If the implementation period is between 18 and 24 months, the enterprise is required to submit progress reports covering the first 12 months of project implementation and annual audited financial statements.

Required Documents for Application?

BUD Fund online electronic application form
Copy of Business Registration Certificate
Copy of the Annual Return form (Form AR1) from the Companies Registry
Copies of supporting documents for business proof, such as commercial contracts, office lease agreements, invoices, MPF contribution records, etc.
Copy of proof of turnover for the previous financial year (except for enterprises established in the current year)
(If applicable) Copies of proof of investment relationship with local enterprises involved in the project, such as signed contracts between both parties
Brochures or printed materials introducing the applying company

Evalutation Criteria

The disbursement of funding depends on the successful fulfillment of the following "Five Criteria for Success":

The project contributes to the development of the company's local business expansion.
The project enhances the competitive advantage of the company's products/services in the local market.
The project yields tangible results and delivers concrete performance evaluation.
The project incorporates substantial measures to expand local business.
The project budget is clear and reasonable.

Disbursement of Funding?

The disbursement of funding can be done through two options: Option 1: Applying for the first installment of funding. Option 2: Not applying for the first installment and submitting the project application. The details of funding disbursement, financial management arrangements, and requirements, including guarantee arrangements, can be found in Section 5 of the "Free Trade Agreement and Investment Agreement Scheme" application guidelines.