Qicaiying Group provides services for the registration of offshore companies—including Hong Kong, U.S., Cayman Islands, BVI, Seychelles, Marshall Islands, Japan, Thailand, Malaysia, Singapore, South Korea, Dubai, Europe, the Middle East, and Southeast Asia—as well as annual audits, business registration changes, and international trademarks, equity structures, financial and tax compliance, Hong Kong residency, andBUD Supplement贴/Passports from small countries/Cross-border e-commerce onboarding support, and other business services. If you need assistance, feel free to reach out to me (call or message me on WeChat: 19076198609).

Want to expand into the mainland or ASEAN markets, but are facing financial pressures, unfamiliar with the policies, and concerned about risks? What can you do? Today, we’d like to introduce a “powerful tool” from the Hong Kong government—BUD Special Fund. It’s like a “guidebook” for companies looking to expand into new markets—it can help you solve funding challenges and lower the barriers to cross-border expansion.

BUD, which stands for “Special Fund for Brand Development, Upgrading and Transformation, and Expansion of the Domestic Market” is a funding program established by the Hong Kong Special Administrative Region Government to support Hong Kong enterprises in expanding into the mainland and ASEAN markets.

Simply put,This is the “market development reserve fund” the government has provided you with.”, with funding of up to 7 million Hong Kong dollars available to help cover expenses related to brand building, upgrading and transformation, sales expansion, and other areas.

This article summarizes the key points of Hong Kong’s latest BUD subsidy policy, the application process, and a guide to avoiding pitfalls, helping you secure the subsidy efficiently and get the Hong Kong government to cover the costs of your cross-border business!

01 

Key Benefits of the BUD Subsidy

1. Direct funding with a fair cost-sharing ratio

The BUD Special Fund (Special Fund for Brand Development, Upgrading and Transformation, and Domestic Market Expansion) operates under a “50%” cost-sharing model between the government and enterprises, with a maximum grant of 7 million Hong Kong dollars available per project. Whether expanding into the mainland market or entering free trade agreement regions such as ASEAN and Africa, eligible expenses can be reimbursed, significantly reducing the cost of market expansion for enterprises.

2. Wide coverage, suitable for a variety of scenarios

The scope of funding covers three core areas: brand development (trademark registration, brand promotion), business transformation (digital transformation, technology upgrades), and market expansion (channel development, trade show participation, localization). Companies engaged in cross-border e-commerce, foreign trade, and global brand expansion can all find funding options tailored to their specific needs.

3. Policies continue to be optimized, making the application process more convenient

The new policies for 2025 further streamline the application process, support online submission of materials and electronic approval, relax restrictions in certain scenarios, and introduce new supporting measures under the “E-commerce Express” initiative to help enterprises expand into the mainland e-commerce market, with policy benefits continuing to materialize.

02

Eligibility Requirements for the Hong Kong BUD Subsidy

Not all Hong Kong companies are eligible to apply; they mustMeets all of the following core criteria, to avoid wasting effort:

• Compliance with Entity Qualifications: The company must be registered in Hong Kong, hold a valid Business Registration Certificate, and be a non-publicly traded company; shell companies will be rejected outright.
• Substantive Operational Requirements: The company must have genuine business operations in Hong Kong and provide supporting documentation—such as Mandatory Provident Fund (MPF) contribution records, payroll records, lease agreements, and bank statements—to ensure it is not merely a “shell company.”
• Project Relevance: The proposed project must be related to the company’s core business, clearly focus on brand development, upgrading and transformation, or market expansion, and demonstrate its value in enhancing competitiveness.
• Financially Sound: Audited financial statements for the past 1–2 years must be provided to demonstrate the ability to cover the remaining expenses for the 50% project and to confirm that there are no significant financial risks.
• Proven track record: Companies that have previously applied for BUD subsidies must ensure that their past projects were completed in compliance with regulations, that summary reports were submitted, and that there are no records of violations.

03

The Complete Process for Applying for the Hong Kong BUD Subsidy

Step 1: Self-Assessment of Qualifications and Clarification of the Project’s Direction

First, review the company’s qualifications against the eligibility criteria listed above to determine the project’s category (branding/upgrading/market expansion), identify the target market and expected benefits, ensure the project aligns with policy requirements, and improve the approval rate from the outset.

Step 2: Prepare the materials—having everything you need is key

Incomplete documentation is a common reason for rejection; please ensure you have the following documents ready in advance:

• Foundation documents:Business Registration Certificate, Annual Return (AR1), and proof of major shareholders' information;
• Proof of Operation:Bank statements for the past three months, Mandatory Provident Fund (MPF) contribution records, lease agreements, utility bills, business invoices, etc.;
• Project Materials:Detailed project proposal (including objectives, budget, implementation details, and expected benefits); evidence of relevance to the target market (e.g., cooperation agreements, certification documents);
• Financial Documents:Audit reports, project budget statements, and statements of funding sources for the past 1–2 years.

Step 3: Submit online and coordinate with the approving department

Submit your application materials through the Hong Kong Productivity Council’s online platform. After confirming that the information is correct, submit it for review. Be sure to check the platform for notifications and promptly provide any additional documents that may be required.

Step 4: Review and Evaluation; Cooperate in Submitting Supplementary Materials

The approval process consists of a preliminary review (to verify the completeness of the materials) and a specialized evaluation (to assess the project’s feasibility and innovation). During this process, you may need to communicate with the approval staff or submit additional materials as requested (such as localized research data or certification documents). The entire process takes approximately 1–2 months.

Step 5: Obtain Approval and Sign the Contract; Clarify the Terms

There are three types of approval outcomes: direct approval, conditional approval (requiring submission of specified additional materials), and rejection (with the option to resubmit after making revisions). Upon approval, a grant agreement is signed with the Productivity Bureau, specifying the grant amount, payment milestones, and project requirements.

Step 6: Project Implementation and On-Time Progress Reporting

Carry out the project according to plan, submit progress reports and financial expenditure documentation on a regular basis, and apply for funding; upon completion of the project, submit a final report and audit documents, and undergo a final review.

04

Guide to Avoiding Pitfalls: 6 Major Pitfalls You Must Avoid

1. The proportion of hardware purchases is too high

With the tightening of new regulations, if the proportion of hardware procurement exceeds 25%, it will trigger a strict review, and projects involving the sole procurement of office equipment, servers, and the like are highly likely to be rejected. It is recommended to submit applications in bundled scenarios, such as a combined proposal for “procurement of live-streaming equipment + training for Southeast Asian influencers.”

2. The project timeline is too short, and there is a lack of planning

Projects with a duration of less than 6 months have a rejection rate of 73% and are likely to be classified as “speculative projects.” It is recommended to design projects with a duration of 12 months or more, with labor costs accounting for at least 40% of the total budget, to demonstrate a plan for sustained operations.

3. Breach in the local evidence chain

Failure to provide target market research data (such as Nielsen or Kantar reports) or proof of product compliance (such as Halal certification) will result in the project being deemed “insufficiently feasible.” Third-party data and compliance certifications must be submitted in advance.

4. Unreasonable pricing of related-party transactions

Engaging an affiliated company to provide services at a price 30% higher than the market rate, or for an amount exceeding 200,000 HKD, will trigger a review for potential conflicts of interest. Give priority to locally certified service providers in the target market to mitigate the risk of related-party transactions.

5. Failure to Plan for Intellectual Property in Advance

Applications for which trademark or patent registration has not been completed in the target country will be rejected outright. The registration period for ASEAN trademarks can be shortened to 5 months through the Hong Kong Intellectual Property Department’s “Fast Track Program.”

6. Imbalance in the Budget Structure

To avoid allocating too large a portion of the budget to inventory procurement, we recommend the following optimal ratio: 15% for market research, 25% for product development, 40% for channel development, and 20% for compliance certification, to ensure that the budget aligns with project objectives.

05

Enterprise Caiying Professional Services

1. Why should you choose us to handle your BUD subsidy application?

BUD applications place extremely high demands on the preparation of project proposals, the logical consistency of materials, and compliance with policies; a professional agency can help you navigate all the hidden hurdles:

• In-Depth Analysis of Policies:Provide real-time analysis of the details of the new 2025 policies, precisely match projects with funding eligibility criteria, and mitigate the risk of rejection from the outset;
• Material Optimization: A professional team refines the project proposal and organizes the operational and financial documentation to ensure compliance with approval standards;
• End-to-End Coordination:Communicate with the Bureau of Enterprise and Productivity on behalf of the company, respond promptly to requests for corrections, and track the approval process to save time;
• Approved Coverage:Familiar with the design logic behind high-success-rate solutions; tailors filing strategies to meet specific business needs; has a track record of helping clients achieve a success rate exceeding 85%.

2. Customized filing solutions tailored to the needs of different companies

be directed againstCross-border E-commerce, Foreign Trade, Brand Expansion OverseasWe provide tailored filing solutions for various scenarios, such as:

• Cross-border e-commerce companies: Focus on digital transformation and the expansion of cross-border channels, optimize the budget structure, and assist in providing proof of platform partnerships;
• Foreign trade enterprises:Strengthen localization certification and market research materials to meet the filing requirements of free trade agreement markets;
• Brands Going Overseas Enterprises:Integrate the intellectual property registration process and highlight the connection between brand building and overseas promotion.

The BUD subsidy is not an “unattainable benefit,” but rather a key tool the Hong Kong government uses to support businesses in their cross-border expansion. The key lies in understanding the policy details, avoiding pitfalls in the application process, and developing a compliant and compelling project proposal. Choosing a professional agency not only saves you time and effort but also significantly increases your chances of approval, turning government funding into a “booster” for your expansion into overseas markets!

Qicaiying Group provides services for the registration of offshore companies—including Hong Kong, U.S., Cayman Islands, BVI, Seychelles, Marshall Islands, Japan, Thailand, Malaysia, Singapore, South Korea, Dubai, Europe, the Middle East, and Southeast Asia—as well as annual audits, business registration changes, and international trademarks, equity structures, financial and tax compliance, Hong Kong residency, andBUD Supplement贴/Passports from small countries/Cross-border e-commerce onboarding support, and other business services. If you need assistance, feel free to reach out to me (call or message me on WeChat: 19076198609).