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
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)
❓ Can shell companies or virtual office addresses qualify for the BUD Fund?
Absolutely not. Under Section 3.1 of the official BUD Fund Guide, applicants must possess substantive business operations in Hong Kong. The vetting committee strictly inspects local employee MPF contributions, a genuine commercial office lease with rates/property demand notes, and active commercial bank transaction records. Pure offshore shell entities are strictly ineligible.
❓ Can Alibaba.com store membership fees, keyword advertising, and trade shows be reimbursed under BUD?
Yes. Under Section 4 of the BUD Guide, verified expenses including Alibaba.com Gold Supplier / Verified Supplier membership dues, digital marketing (P4P keyword ads, Top Placement), overseas multi-language standalone export websites, and overseas physical exhibition booth rentals qualify under market development and branding scopes on a 1:3 matching basis (Government covers up to 25%, enterprise funds 75%).
❓ What are 「E-commerce Easy」(电商易) and 「Easy BUD」(简易申请)?
To expedite enterprise applications, the HKSAR Government established two distinct fast-track channels under the BUD Fund: ①【E-commerce Easy (电商易)】: Provides up to HK$800,000 dedicated for third-party B2B/B2C storefront setups (such as Alibaba.com), digital ads, and e-commerce systems; ②【Easy BUD (简易申请)】: Fast-track scheme with a funding cap of HK$150,000 per project for targeted promotional activities, featuring an expedited vetting cycle of ~30 working days.
❓ How is the 1:3 matching funding and initial disbursement paid?
Under the 1:3 matching mechanism, the government subsidizes up to 25% of approved costs, with the enterprise providing 75% in cash. Enterprises can apply for an initial advance payment of up to 20% of the approved government funding, which is wire-transferred directly into a designated project bank account upon depositing matching funds.
