Official Title & Policy Mandate: The BUD Fund (Dedicated Fund on Branding, Upgrading and Developing Markets) is the flagship grant program established by the HKSAR Government. Each eligible enterprise is entitled to a cumulative funding ceiling of HK$ 7,000,000 on a 1:3 matching basis (Government covers up to 25%, enterprise funds 75%) across Mainland China and 48 Free Trade Agreement (FTA) / Investment Promotion and Protection Agreement (IPPA) economies.

1. Key Core Parameters of the BUD Fund

Parameter Official Standard & Compliance Details
1. Cumulative Funding Cap Up to HK$ 7,000,000 per enterprise (Maximum 70 approved projects)
2. Matching Ratio 1:3 Matching Basis (Government covers 25%, enterprise provides 75% in cash)
3. General Project Limit Up to HK$ 1,000,000 per approved general project (Standard project duration: up to 24 months)
4. Geographical Coverage Mainland Programme + FTA & IPPA Programme (Covering Mainland China, ASEAN, Japan, Korea, Middle East, Australia, and European FTA zones)
5. Specialized Fast-Track Channels • 「E-commerce Easy」(电商易): Up to HK$ 800,000 dedicated to Alibaba.com store onboarding and digital ad campaigns;
• 「Easy BUD」(简易申请): Up to HK$ 150,000 per project for streamlined promotional scopes with ~30-day vetting.
6. Initial Advance Payment Enterprises may apply for up to 20% initial advance payment deposited into a dedicated project bank account to start implementation.

2. Eligible Alibaba.com & Cross-Border Export Scopes

Under Section 4 of the official BUD Fund Guide, the following export-related expenditures qualify for reimbursement:

  • Alibaba.com Store Membership: Annual fees for Gold Supplier and Verified Supplier storefront onboarding;
  • Digital Marketing & Search Ads: P4P keyword advertising, Top Placement (顶展), Google Ads, and overseas social media campaigns;
  • Multi-Language Export Websites: Development of responsive standalone B2B websites, 3D product showrooms, and digital catalogs;
  • Overseas IP & Certifications: International trademark registrations, patent filings, and CE / FDA / RoHS compliance testing;
  • Overseas Trade Shows: Physical booth rental fees, booth construction, and international freight for product samples.

3. Statutory Entry Requirement: Substantive Business Operations

Anti-Shell Entity Statutory Redline:
Under Section 3.1 of the BUD Guide, shelf companies or virtual secretarial addresses are strictly ineligible. Applicants must submit:
1. Local Staff with MPF: At least 1 local Hong Kong employee with monthly MPF contribution records;
2. Commercial Office Lease: Independent commercial office lease contract with rates demand notes (no virtual coworking desks);
3. Commercial Banking Records: 6 to 12 months of active commercial bank account statements;
4. Independent CPA Audit: Final project closure requires statutory third-party audit by a Hong Kong Certified Public Accountant.

4. Frequently Asked Questions (FAQ)

Q Can a company with only a registered secretarial address or virtual office apply for the BUD Fund?

No. Under Section 3.1 of the HKSAR TID and HKPC BUD Fund Application Guidelines, applicant enterprises must have genuine and substantive business operations in Hong Kong. The vetting committee strictly inspects Mandatory Provident Fund (MPF) records of local employees, tenancy agreements for physical commercial offices (with rates/utility bills), and commercial bank transaction statements. Shell companies without physical presence are strictly ineligible.

Q Can Alibaba.com onboarding, keyword advertising (P4P), and trade show fees be subsidized by the BUD Fund?

Yes. Under Section 4 eligible funding scopes, expenses for establishing storefronts on cross-border e-commerce platforms (such as Alibaba.com Gold / Verified Supplier annual fees), digital advertising (P4P keyword bidding, Premier Showcases), multilingual independent brand websites, and booth costs at overseas B2B trade shows are all eligible under marketing development on a 1:3 matching basis (up to 25% government subsidy).

Q What are 'E-Commerce Easy' and 'Easy BUD'?

The Government established two streamlined tracks: 1) 'E-Commerce Easy': Up to HK$800,000 cumulative ceiling per enterprise dedicated to cross-border e-commerce storefronts, digital marketing, and independent websites; 2) 'Easy BUD': Fast-track applications capped at HK$150,000 per project for specific marketing activities, vetted in approximately 30 working days. Both count toward the total HK$7,000,000 enterprise cap.

Q How does the 1:3 matching principle and initial disbursement work?

The BUD Fund operates on a 1:3 matching basis (Government contributes up to 25% of total approved expenditure; enterprise funds 75%). Upon approval, enterprises can opt for an initial disbursement of up to 20% of the approved grant into a dedicated project bank account in Hong Kong, easing upfront working capital pressure.