Recent policy changes apply to applications received from 00:00 on March 14, 2025: (i) matching ratio tightened to 1 (Government) : 3 (Enterprise); (ii) initial payment reduced to 20% of approved government funding; (iii) per-application cap for General and E-commerce Easy set at HK$800,000; (iv) “in-force” funding at any one time capped at HK$800,000; (v) various scope clarifications (e.g., professional fees for establishing new entities; rules around ad/online-platform management fees).
The Fund now explicitly supports green transformation projects that help enterprises meet target-market standards (e.g., carbon audits, line upgrades, new technologies), and E-commerce Easy covers both Mainland and the 10 ASEAN countries.
Eligibility and funding scope under the BUD Fund
Eligibility criteria
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Non-listed enterprise registered in Hong Kong under the Business Registration Ordinance (Cap. 310); and
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Must have substantive business operations in Hong Kong (policy reaffirmed in 2024 LCQ). Typical evidence includes MPF records, audited accounts, contracts/invoices, etc.
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Maximum 70 approved projects per enterprise during the programme’s tenure (raised from 60 in Nov 2022).
Funding scope
Projects that develop brands, upgrade/restructure operations, or promote sales in designated markets. Eligible items include:
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Manpower (project-dedicated new hires); professional fees (including setting up new business entities in eligible markets—expressly supported since Mar 2025); testing & certification; machinery/equipment/moulds; exhibitions/trade fairs and related promotion; advertising (TV/online/KOLs); video & digital content; SEO (e.g., Baidu); online platform promotion (Weibo, e-commerce marketplaces); trademark/patent/design/utility model/copyright registration; and e-commerce projects (websites, apps, payment, marketplaces).
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Cumulative IP registration cap: up to HK$600,000 per enterprise across projects (counted toward the HK$7M).
Procurement & evidence notes
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Reasonableness of costs (e.g., market-benchmarked rent, salaries, equipment prices; economy-class travel/budget hotels for exhibitions).
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Documentary proof examples the Secretariat may request: rental benchmarks, salary ranges, reference quotations, trade fair fee notices, KOL engagement plan & quotes, proof of shareholding for overseas implementing entities (≥30% up to ultimate natural persons), and relevant licences/qualifications.
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Quotation streamlining: the Government stated in 2023 that small items ≤HK$5,000 need no quotations (applicable to General and Easy BUD); follow the latest 2025 Guides for exact thresholds.
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Project duration: General/E-commerce Easy projects must be completed within 24 months; Easy BUD within 12 months.
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Project start date: the 2025 Guides state the project period may start before formal approval/funding agreement (subject to Guide conditions)—use the latest Guides when planning commencement.
Designated economies
Dedicated fund on Branding, Upgrading and Domestic Sales (BUD Fund) funding amount
Key parameters (as at Mar 14, 2025 and after):
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Matching ratio: 1 (Government) : 3 (Enterprise) (i.e., the Government funds up to 25% of approved project expenditure; enterprise contributes the rest in cash). Audit fees count under the same matching ratio.
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Cumulative ceiling: HK$7,000,000 per enterprise (unchanged).
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Per-application caps:
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General: HK$800,000
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E-commerce Easy: HK$800,000 per application (and HK$1,000,000 cumulative per enterprise under E-commerce Easy, counted toward the HK$7M)
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Easy BUD: HK$100,000 per application.
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In-force cap: at any time, an applicant’s total approved government funding in force must not exceed HK$800,000 (affects concurrent approvals).
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Initial payment (upon approval & agreement): 20% of approved government funding; remainder after completion & verification (replaces the former 75% initial).
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Audit fee cap: HK$10,000 per project audit, now subject to the 1:3 matching ratio and counted toward ceilings.
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E-commerce Easy special note: items are not subject to individual funding caps (within the per-application amount), enabling more flexible e-commerce portfolios.
Dedicated fund on Branding, Upgrading and Domestic Sales (BUD Fund) application process
CityLinkers delivers end-to-end support aligned with the official flow and 2025 rules:
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Define Project Scope and Target Market
Decide between General, Easy BUD (designated, ≤HK$100k), or E-commerce Easy (Mainland/ASEAN e-commerce). Confirm your eligible market(s) and timeline (24 months for General/E-commerce Easy; 12 months for Easy BUD). Consider green transformation measures where relevant. -
Submit Company Documents
Applications are online (year-round). Provide BR, proof of substantive Hong Kong operations, turnover proof (if >1 year old), and any market-specific licences/qualifications. Contact BUD Secretariat (HKPC) for queries (+852 2788 6088). -
Proposal Preparation and Application Submission
Build a clear workplan & budget consistent with the 1:3 matching and relevant caps (HK$800k General/E-commerce Easy; HK$100k Easy BUD). For IP costs, respect the HK$600k cumulative IP cap. General/E-commerce Easy are processed in batches with published cut-off dates (e.g., current cut-off shown on the BUD site). -
Government Review and Response
Performance pledges: 60 working days for General/E-commerce Easy; 30 working days for Easy BUD. From Mar 2025, General/E-commerce Easy adopt batch processing; enterprises are limited to one application every 3 months (aligned across types). -
Approval and Contract Signing
On approval, sign the funding agreement; the initial 20% payment arrangement applies. -
Project Execution and Procurement
Implement measures per fundable scope clarifications (2025) and procurement rules. Keep market evidence for reasonableness (quotes, salary/rent benchmarks, KOL plans); note 2023 streamlining for ≤HK$5,000 items (no quotations). -
Project Completion and Reporting
Submit completion report and independent audit (audit fee subject to 1:3 matching; cap HK$10,000). Follow the Guide’s reporting schedule (e.g., progress reporting for longer projects). -
Final Review and Funding Disbursement
Upon verification, the balance is released. (Note: from Mar 2025 the upfront percentage is 20%; remaining funds follow final acceptance.)
Three application types
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General – broad measures; HK$800k per application; 60 working-day pledge; batch-processed (quarterly cut-offs announced on the BUD site).
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Easy BUD – designated measures; HK$100k per application; 30 working-day pledge; one Easy BUD application every 3 months.
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E-commerce Easy – e-commerce for Mainland & ASEAN; HK$800k per application; HK$1,000,000 cumulative per enterprise; items not subject to individual caps; batch-processed.
