Recently, the Hong Kong government has unveiled Easy BUD, an expedited application route under the Dedicated Fund on Branding, Upgrading & Domestic Sales (BUD Fund). This initiative is designed to enable businesses to grow, penetrate markets, and boost their competitive edge.
What is the BUD Fund?
The BUD Fund was originally established by the Hong Kong Special Administrative Region Government in June 2012 as part of the strategies to leverage the opportunities presented by the National 12th Five-Year Plan. Its primary goal was to assist Hong Kong enterprises in building their brands, refining their operational structures, and increasing domestic sales in Mainland China.
In an effort to broaden the reach of the BUD Fund, the government expanded its geographical scope in August 2018 to include markets in the Association of Southeast Asian Nations (ASEAN). This expansion extended even further in January 2020 to cover economies that have Free Trade Agreements (FTAs) with Hong Kong, with the objective of enabling enterprises to seize economic opportunities.
As part of its commitment to bolstering business competitiveness and facilitating the development of diversified markets, the government has also raised the maximum cumulative funding per enterprise under the BUD Fund to HK$7,000,000. Additionally, the cap on the number of approved projects per enterprise was increased to 70 in November 2022.
What is the Easy BUD?
On 16 June 2023, the government introduced Easy BUD with the aim of simplifying the application and project implementation process for Small and Medium-sized Enterprises (SMEs).
The streamlined process under Easy BUD includes a simplified application form and less stringent requirements for supporting documentation. Moreover, the evaluation arrangements have been streamlined, aiming to cut the application processing time in half to within 30 working days, compared to the standard BUD Fund application process.
Under the Easy BUD initiative, enterprises can seek funding for various activities such as advertising, participation in exhibitions, development or enhancement of mobile applications and company websites, conducting testing and certification, designing and producing promotional materials, and applying for intellectual property rights registrations.
Funds under the Easy BUD initiative will be granted on a matching basis following the completion of projects, with the maximum funding for each project set at HK$100,000. All projects must be finalized within a year.
Enterprises are permitted to submit one Easy BUD application every six months, with the total funding ceiling per enterprise under the BUD Fund capped at HK$7 million.
At the Easy BUD launch event, Secretary for Commerce & Economic Development, Mr. Algernon Yau, stated that an additional HK$500 million had been invested into the BUD Fund. The introduction of Easy BUD was a strategic move to accelerate the application process and thereby stimulate the growth of small and medium businesses.
Mr. Yau further encouraged the business community to utilize this streamlined application route to foster the expansion of Hong Kong's businesses and industries.
Fidinam can help with your BUD applications
Fidinam stands committed to fostering the growth and expansion of businesses in Hong Kong and across Asia. With a deep understanding of the local market and regulations, we are well-positioned to assist with applications under the Easy BUD and BUD Fund initiatives.
Furthermore, we provide a comprehensive suite of corporate services that include company incorporation, corporate secretarial services, accounting, tax filing, and other backend outsourcing functions.
Contact Fidinam and let's transform your business aspirations into a reality.
