BUD Funding Audit
BUD Funding Audit
The BUD Special Fund is a special fund that supports Hong Kong registered, Hong Kong operating and non-listed companies to enhance their competitiveness in the Mainland and ASEAN markets. It helps companies develop their brands, upgrade, transform and expand the domestic market, including Mainland and ASEAN market promotion , Brand awareness enhancement, corporate operation optimization, product quality enhancement, sales channels expansion in the Mainland and ASEAN, etc.
Each enterprise in the Mainland and ASEAN has a maximum cumulative funding limit of HK$1 million. The funding is provided on a reciprocal basis. The enterprise pays one dollar and the government also pays one dollar to support related projects to expand the mainland and ASEAN markets.
CLG CPA Limited
The government subsidizes up to 50% of the total approved expenditure of an individual project, and the enterprise must bear no less than 50% of the total approved expenditure of the project in the form of cash. During the application period of the fund, each company can be funded up to 20 approved projects in the “Mainland Project” and “Free Trade Agreement Project”, and the maximum cumulative funding limit is HK$4 million.
CLG CPA Limited
Project implementation period
The application project must not be carried out until the funding application is approved, and each project should generally be completed within 24 months.
For applications starting from April 9, 2020, the maximum amount of initial funding will be increased from 25% to a maximum of 75% of the approved project amount. If the company indicates “75% of the first installment is required” in the application, the relevant amount will be disbursed to the bank account provided by the company after the contract is signed.
Upon completion of the project and acceptance of the supporting documents, the remaining grant amount will be disbursed to the enterprise.
If the approved grant amount exceeds HKD50,000, an audit statement covering the entire project prepared by an independent auditor must be submitted to the Secretariat within 2 months after the completion of the project, and our firm will also provide audit services for the relevant project.
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Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)
There is no restriction for a new company in the BUD application guideline. However, the Fund is not for start-ups and the BUD Office expects certain substantial business to justify the grant.
Daily expenditure, e.g. office rent, water and electricity fee, salary of existing staff etc. Moreover, sales commission and reward.
BUD Fund  :
My factory is in a FTA region and my target market is China. Which programme should I apply?
This is a common situation and CLG Group have a lot of inquiries. Unfortunately, it is not applicable for current BUD Fund.
For type (i) project, the applicant should ballpark or quote the consultation fee. For type (ii) project, the applicant should prepare a holistic business plan. Whichever type, the applicant should provide a proof of substantive business, e.g. MPF record.
No. However, a professional BUD consultant can help to save cost and reduce risk. Read more: How to Choose a BUD consultant?
BUD Fund  :
In what situation will the Government suspend or terminate the funding for an approved project?
If the company cannot submit the required report on time, or the project progress falls behind the expectation so that the Government sees no chance of project completion, or the company breaches the subsidy agreement. All above cases may cause a suspension or termination to the funding.
In the BUD Fund, the maximum amount of funding for each project is one million in HKD.
BUD Fund  :
What is the upper limit of the projects that each enterprise can receive in the BUD Funding program?
In the BUD funding Program, there is a maximum of 40 approved projects in the Mainland and free trade agreement plans, and the company must complete each project within 24 months.
Under the Hong Kong Business Registration Ordinance (Chapter 310), registration must meet the definition of small and medium-sized enterprises (SMEs) prescribed by the Hong Kong government and have substantial business operations in Hong Kong. SMEs refer to manufacturing companies employing less than 100 employees or non-manufacturing companies employing less than 50 employees in Hong Kong.
To encourage Hong Kong companies to enter the mainland market, the government has set up a “BUD” (Dedicated Fund on Branding, Upgrading and Domestic Sales) to provide financial assistance to Hong Kong companies to explore business opportunities. The Mainland plan is one of the projects under the fund; Develop and strengthen the economic cooperation between the Mainland and Hong Kong and Macau while helping Hong Kong companies to enhance their competitiveness and expand into the Chinese market.
To further support local enterprises in coping with the challenges faced by the Hong Kong economy, the 2019-20 Budget proposes to inject one billion Hong Kong dollars into the BUD Special Fund and expand the scope of funding for the BUD Special Fund to all FTA signed with Hong Kong (since Trade agreement). Moreover, further expand the scope of funding of the Fund to cover all economies that have signed free trade agreements with Hong Kong in the future, that is, in addition to the original “Mainland Plan,” it also launched the “FTP Plan” (the “ASEAN Plan” was included in its Down).
The BUD Secretariat (implemented by the Hong Kong Productivity Council) will make a preliminary assessment and then submit it to the Project Management Committee for approval. The committee is chaired by a government official (usually the Director of Trade and Industry). Business professionals with professional knowledge or experience in developing brands, upgrading and transforming, and expanding marketing markets. The BUD Secretariat will notify the result of the approval to the applicant company.