Did you know that Hong Kong government is supporting local enterprises to expand their business into Mainland China and overseas markets? Especially for small and medium-sized enterprises (SMEs) looking for ways to grow their way beyond Hong Kong and strengthen their brand on the global stage, the BUD Fund is a key. SMEBro will explain to you this powerful tool for SMEs, a fund designed specifically for Hong Kong registered companies to enhance competitiveness through branding and exploring new market opportunities.
What is the BUD Fund?
Branding, Upgrading and Domestic Sales Fund or BUD funding are key initiatives from the Hong Kong government, announced by the Hong Kong Productivity Council (HKPC) to support enterprises' projects in business upgrading, brand development, transformation, and expansion of overseas market sales. Funding can be used for improving product or service quality, conducting marketing activities, adopting new technologies, or business transformation processes, and taking measures to explore overseas markets by enhancing their overall competitiveness and better development in the industry.
How does the BUD application process work?
The BUD funding application has several key steps to ensure the company's projects align with the fund's objectives and eligibility criteria. This is the step-by-step application process for BUD funding:
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Project planning and documentation
A company needs to identify the promotional plans and target regions for your next project such as trademark registration, exhibitions, video production. Don't forget to prepare necessary company documents such as a copy of the annual return form, copy of the business registration certificate, evidence of substantive business operations in Hong Kong, proof that there is an investment relationship between the applicant and the local business involved based on the project.
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Application fund
Complete the BUD funding online electronic application form or ask SMEBro to handle it. Submit the application form with the required documents.
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Project proposal preparation
The proposal must align with branding, upgrading and domestic sales. Create a detailed project proposal with objectives, scope, and expected outcomes.
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Waiting for approval
The approval time is up to 60 working days from the date of receipt of a complete application and the Hong Kong Productivity Council (HKPC) will review your application.
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Initial disbursement
During approval, a funding agreement needs to be signed. For projects less than 2 years, 75% of the funding is disbursed after contract signing. Then it's time for project implementation according to the approved project proposal, and the company must ensure all expenditures are in accordance with the approved budget and scope.
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Audit and final report
At project completion, a company submits the final report with details of outcomes and expenditures. You need a Certified Public Accountant (CPA) to audit the project. Then the final disbursement (25% of the funding) will be disbursed after the Trade and Industry Department reviews the audit and final report results.
The difference between BUD, E-Commerce Easy and EASY BUD
The difference between general application, easy application and e-commerce application is the maximum funding amount for each project, funding disbursement, project implementation time, and funding scope.
The easy application has a maximum of HKD $100,000 funding for each project, while the general application and E-commerce easy are HKD $1,000,000 at maximum. There's no initial payment funding disbursement for easy applications while others can choose to submit the project applications in method 1(applying for the first phase of funding) or method 2(not applying for the first phase of funding).
The project implementation time for general application and e-commerce easy is up to 24 months, while easy application is up to 12 months. The funding scope for general applications is broader and more complete, while e-commerce easy focuses on online sales platform advertisements, mobile applications, company websites, and other e-commerce related measures.
The easy application includes advertisements, exhibitions, travel and accommodation expenses, trademark registration applications, company websites, testing and certification services, design and production of promotional materials, and external audit fees for approved projects.
What are the qualifications for applying for BUD special funds?
The applicant must be a non-listed company registered in Hong Kong under the Business Registration Ordinance (Cap. 310). The company must have actual operations and business transactions within Hong Kong. This can be proven when the company hires employees, conducts product or service transactions in Hong Kong, and pays regular taxes.
The funding must be used for projects that aim to develop business in the FTA and IPPA markets or Mainland China, not within Hong Kong. These projects must be in accordance with their title, it's for Branding, Upgrading, and Domestic Sales.
Approval process and funding distribution
The Hong Kong Productivity Council will review the application within 2-4 weeks and may request additional documents or clarifications. Upon approval, the applicant will receive notification from HKPC in writing, and need to sign a funding agreement in accordance with the terms and conditions.
Can BUD funding be applied by startups that have no income?
Yes, only if a company is engaged in a scientific research project and can prove it will get income in a foreseeable future, plus a signed sales contract. But traditional industries such as trade retail will not accept applications from businesses with no income.
BUD funding details you need to know
There are many things you need to pay attention to for this funding. You must understand about eligibility, amount of funding, funding principles, and funding method. If you are overwhelmed with this, you can trust SMEBro. We have extensive experience in BUD applications, with more than 500 BUD applications since 2016. Our clients have been approved for BUD success cases with a total amount of more than $110 million.
With SMEBrother, you can get a professional team that can help you to apply for BUD easily, no matter what your business scope and where you are. We will help in all aspects. With the many demands to apply for BUD as an agency, we guarantee that the application will be successful, and we will assist you to fill in the project budget to increase the success rate. Plus, we will make sure to be an auditing partner that is easy to work with - simply give us your raw data and accounting information and let us do the rest for you.
