BUD-專項基金-BUD Fund

【2024 BUD Funding Guide】Eligibility, Review Time, and Important Notes

Table of Contents:
・Introduction to the BUD Fund
・Eligibility and Scope of Funding
・Coverage of Promotion Countries
・Application Process
・Application Documents
・Content to include in the BUD Application Plan
・FAQs

Introduction to the BUD Fund

In June 2012, the Hong Kong government established the BUD Fund as part of the national “12th Five-Year Plan.” It aims to provide financial support to Hong Kong businesses for brand development, upgrading and transformation, as well as expanding the domestic market. Each eligible company can receive funding of up to HKD 7 million, with a maximum grant of HKD 1 million per application.

BUD Fund Application – Eligibility and Scope of Funding

What are the eligibility criteria for the BUD Fund?

Your company must meet the following criteria:

  1. Registered in Hong Kong as a non-listed company with substantial business presence.
  2. The proposed project must fall within the scope of funding. Please refer to the list of eligible projects below.

What is the funding ratio for the BUD Fund??

The funding ratio for the BUD Fund is 50%. The maximum grant per application is HKD 1 million, with a total maximum of HKD 2 million (i.e., HKD 1 million from your company and HKD 1 million from the government). However, the approved funding amount will be determined based on the specifics of your project and the size of your company.

What areas does the BUD Fund support?

Brand Development:

Organizing brand promotion events in target markets.

Market Promotion:

Producing and distributing promotional materials, participating in overseas exhibitions, etc..

Domestic Market Expansion:

Establishing or upgrading e-commerce platforms, entering the Mainland China e-commerce market.

Business Upgrading and Competitiveness Enhancement:

Introducing new technologies to improve production processes, acquiring advanced manufacturing equipment, etc..

Product Development:

Research and development of new products to meet specific market demands, such as developing products suitable for tropical climates in ASEAN markets.

Application of New Technologies:

Implementing data analytics software to enhance market insights and decision-making efficiency.

BUD Fund – Coverage of Promotion Countries?

Which countries does the BUD Fund support for promotion?

Asia:
Mainland China, Macau, Japan, South Korea, Singapore, Malaysia, Vietnam, Thailand, the Philippines, Indonesia, Myanmar, Cambodia, Laos, Brunei

Australia and New Zealand:
Australia, New Zealand

Middle East:
United Arab Emirates, Kuwait

Americas:
Canada, Mexico, Chile

Europe:

United Kingdom, Germany, Italy, France, Switzerland, Netherlands, Sweden, Norway, Denmark, Finland, Iceland, Austria, Belgium, Luxembourg, Liechtenstein, Georgia

BUD Fund Application Process

  1. Confirm eligibility: Verify if the company meets the BUD application requirements.
  2. Prepare documents: Prepare the application documents, including a business plan.
  3. Submit the application: Submit the application and supporting documents through the online system.
  4. Await initial review: Wait for the relevant department to assess the effectiveness and eligibility of the application. The company will receive an initial review notice via email within 2-4 weeks.
  5. Submit supplementary information or documents: Respond to any content queries within 14 days. The relevant department may also contact the company for further inquiries.
  6. Approval granted: Once the application is approved, follow the guidelines to complete the subsequent procedures.
  7. Project implementation: Start implementing the funded project, which should be completed within 24 months.
  8. Progress reporting: Regularly submit project progress and financial reports as required.

BUD Fund Application Documents

  • BUD Fund online application form
  • Business registration certificate and company registration copy
  • Copies of proof of personal information of shareholders (e.g., Business Registration Form 1(a), Annual Return form (Form AR1) from the Companies Registry, etc.)
  • Copies of business proof documents, such as business contracts, office lease agreements, bills, MPF contribution records, etc.
  • Copies of proof of the total turnover for the previous year (except for newly established companies in the current year)
  • (If applicable) Copies of proof of investment relationship with Mainland Chinese companies involved in the project, such as signed contracts between both parties
  • Promotional brochures or printed materials introducing the applying company

Content to include in the BUD Application Plan

  • Purpose of the application
  • Implementation methods and timetable
  • Financial budget and expected outcomes
  • Anticipated benefits to the company and the Hong Kong economy

FAQs

The approval rate for BUD Fund applications is approximately 35%. If a small or medium-sized enterprise applies for a funding amount that is too large or does not align with the application’s objectives, there is a chance that the approved funding amount will be significantly less than expected or that the application may not be approved at all.

Generally, the entire BUD Fund application process takes about 2 to 3 months, depending on the completeness of the documents and plans submitted by the company. 

Currently, there is no specific deadline for BUD Fund applications.

Funding is provided on a matching basis, and the government will provide up to 50% of the approved total project expenditure. Each company can receive a maximum of HKD 7 million, and the maximum funding amount per application is HKD 1 million. Companies can submit a maximum of 60 applications.

BUD Fund allows for a budget adjustment of ±20%. If a project saves on expenses due to lower-than-expected procurement costs, the remaining funds can be allocated to other items within the project that exceed the initial budget, within the range of ±20%.

Companies can indicate in the application that they require an initial disbursement of 75%. The amount will be credited to the company’s bank account after signing the agreement. Otherwise, the BUD department will disburse no more than 50% of the approved funding amount based on the actual project progress and expenditure during the mid-term review.

Yes, it is possible to apply for multiple BUD Fund projects. Each application under the “Dedicated Fund on Branding, Upgrading, and Domestic Sales” (BUD Fund) must have a minimum interval of 6 months between applications. There is no time limit for applications under the “General Application” mode.

All documents and invoices must be addressed to the company’s name, and all suppliers must be registered companies. Different price quotations may be required for different price ranges, and companies should select the lowest quotation. The winning bidder needs to sign a “Confirmation of Non-Collusion and Non-Price-Fixing.”

The employees hired should not be existing employees, and the MPF records for new employees within one year may be audited. The company also needs to provide the following documents:

  1. Recruitment advertisements on public platforms (must include job positions, application deadlines, and a screenshot showing the posting date).
  2. At least 3 received CVs and interview evaluation records (the highest-scoring candidate should be hired).
  3. Signed employment contracts.
  4. MPF contributions, employee salary transfers, and acknowledgment records.

Some fraudulent BUD Fund consulting companies may claim to assist small and medium-sized enterprises in applying for funding but actually encourage clients to falsify information and defraud the government for funding while extracting high commissions. It is recommended that businesses interested in applying for BUD Fund funds not rely solely on consultants to fill out the application plan. They should have their own clear plan and discuss the content of the application plan with the consultant, being cautious of any suggestions that may lead to fraudulent activities. Businesses can contact trustworthy funding consultants to obtain a clear understanding of the funding details.

Summary: Avoid the temptation of convenience when applying for the BUD Fund

The opportunities brought by the BUD Fund are undoubtedly crucial for the long-term development of businesses. It is advisable for companies to apply for BUD funding based on their actual needs and to consult trustworthy funding consultants to discuss the application process. Companies should also be cautious and avoid engaging in illegal activities due to seeking small gains or convenience.

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Published On: January 2nd, 2024Categories: Ecommerce News, Funding, Tutorial

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