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BUD Special Fund
In order to better support businesses in enhancing their competitiveness and expanding into diverse markets, From November 2022 the "BUD Special Fund" has increased the cumulative funding limit for each company to 7 million yuan. Additionally, the maximum number of approved projects that each company can receive has been raised to 70.
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BUD Special Fund-Mainland Project
1. The software file of the application form (MS word format, Chinese or English version)
2. One 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 applying enterprise
－ A copy of the supporting documents of the major shareholders of the applying company (eg: Annual Return Form AR1 issued by the Companies Registry)
－ A copy of the documents proving that the applicant company has substantive business operations in Hong Kong
－ A copy of the document certifying that the applicant enterprise has a direct investment relationship with the mainland business unit
BUD submit application documents
All non-listed companies that are registered in Hong Kong in accordance with the Business Registration Ordinance (Chapter 310) and have substantial business operations in Hong Kong
Application Form
Each company can be approved for a maximum of 70 funded projects, with a cumulative funding limit of HKD 7 million. The maximum funding amount for each application is HKD 1 million.
Funding is provided on a matching basis, where the government can fund up to 50% of the total approved expenditure for individual projects. Companies are required to contribute in cash for at least 50% of the total approved expenditure for each project.
Technology Voucher Amount
Applicant companies can choose Option 1 or Option 2):
Option 1 - Setting up Initial Fund Disbursement:
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Companies need to open a dedicated project account to handle project income and expenses.
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Projects must start after approval and signing of the funding agreement.
Option 2 - No Initial Fund Disbursement:
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Companies are not required to open a dedicated project bank account.
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Projects can start the day after the application form is received by the Secretariat (subject to approval for funding).
BUD Funding Methods
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Establishment of business units and manpower: Setting up new business units, hiring employees directly related to the project and fully dedicated to project implementation.
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Marketing and promotion: Advertising, exhibitions, design/production of promotional materials, designing and establishing online sales platforms, building or optimizing company websites, creating or optimizing promotional mobile applications (Apps).
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Product upgrades or development: Purchasing or leasing machinery/equipment/molds, producing/purchasing product samples or templates.
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Testing and intellectual property: Testing/certification registration, applying for product patents, applying for trademark registration, applying for copyright protection.
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Project audits: Outsourcing audits for project accounts.
Common BUD Funding Categories:
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Branches/sales points/display points/business units: Expenses related to the leasing, renovation, and utilities costs of branches/sales points/display points/business units. (Except for newly added branches/sales points/display points/business units under the "ASEAN Program".)
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Equipment/devices: Purchasing/leasing costs for desktop and laptop computers, software, and other general-purpose equipment (such as cameras, projectors, printers, retail systems, including general equipment for newly recruited project employees).
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Market promotion, advertising, and exhibition gifts: Membership registration fees and annual fees for associations or professional organizations (including one-time or recurring expenses), commission calculations based on sales/profit for sales-oriented branches/product displays (including physical stores and online sales points), commissions required by platforms like Taobao.
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Patent and trademark registration: Fees for patent and trademark registration outside Mainland China, ASEAN, and Hong Kong.
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Transportation: Travel expenses between Mainland China/Hong Kong and ASEAN/regions outside Hong Kong, product shipping and logistics expenses (excluding shipping and logistics expenses for exhibitions and other sales activities).
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Others: Production/production costs for products (excluding sample production costs for marketing and promotional purposes).
Expenses Not Eligible for BUD Funding:
BUD Free Trade Agreement (FTA) Program
Other Asian economies: Japan, South Korea, Kuwait, Macau, United Arab Emirates.
Europe: Austria, Belgium-Luxembourg Economic Union, Denmark, European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland), Finland, France, Georgia, Germany, Italy, Netherlands, Sweden, United Kingdom.
Americas and Oceania: Australia, Canada, Chile, Mexico, New Zealand.
Applicable regions and countries
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The ASEAN Program covers three main categories: (i) Brand Development, (ii) Upgrading and Transformation, and (iii) Marketing Expansion.
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Project audits: Outsourcing audits for project accounts.
ASEAN Program Scope
(A) Brand Development Strategy and Positioning - Company brand vision, product and service planning.
(B) Brand Establishment, Design, and Communication - Brand image and style development, brand rebuilding.
(C) Brand Management - Brand evaluation, brand protection.
(D) Brand Monitoring - Brand intellectual property research and brand sustainability surveys.
Brand Development
(A) Business Model Upgrading and Transformation - Transition from Original Equipment Manufacturer (OEM) to Original Design Manufacturer (ODM) and/or Original Brand Manufacturer (OBM).
(B) Product Innovation and Repositioning - Product strategy, new product development.
(C) Materials Management - Supply chain planning and execution.
(D) Technological Upgrading - Manufacturing technology upgrade, process and business automation.
(E) Management Upgrading - World-class management systems, business process reengineering, quality improvement.
(F) Logistics Management - Warehouse management, fleet management, and distribution management system enhancement.
Upgrading and Transformation
(A) Marketing Strategy Planning - Formulating marketing strategies.
(B) Marketing Operations and Management - Operational transformation.
(C) Marketing Channel Management - Market promotion strategies and research, sales and distribution channel development, implementation of advertising and promotional activities.
(D) Marketing Team Building and Management - Staff development and performance management.