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 channel 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.

Official website

7M

CUMULATIVE FUNDING CEILING

12 months

TIME TO COMPLETE

75%

INITIAL FUNDING CEILING

70

APPROVED PROJECT

We have successfully provided special fund audit (BUD AUDIT) services for 50 companies to develop brands, upgrade and transform and expand the domestic market

The industries mainly include the following:

  • Beauty industry
  • Manufacturing
  • Fashion design

Projects include:

  • Brand promotion
  • Upgrade
  • Expand domestic sales related recruitment
  • Purchase instruments
  • Goods and services
  • Hire a supplier

To ensure that the project funds have been solely and properly applied to the projects and expended/received in accordance with the “Project Expenditure” section of the Approved Project Proposal, the required accounts shall be audited by an independent auditor who must be either Certified Public Accountants or Public Accountants registered under the Professional Accountants Ordinance (Cap. 50) (the Auditors).

If you need us to provide a BUD audit quotation, please provide the following information: Company name applying for BUD audit, Project title of BUD audit

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FAQs

1Can a new company apply 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

2What are not covered by the BUD fund?

  • Daily expenditure, e.g. office rent, water and electricity fee, salary of existing staff etc. Moreover, sales commission and reward.

3My factory is in a FTA region and my target market is china. Which programme should I apply to?

  • This is a common situation and CLG Group has a lot of inquiries. Unfortunately, it is not applicable to the current BUD Fund.

4What should the applicant prepare before applying to the 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 proof of substantive business, e.g. MPF record.

5Is it necessary to hire a BUD consultant?

  • No. However, a professional BUD consultant can help to save costs and reduce risk. Read more: How to Choose a BUD consultant?

6In 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 the above cases may cause a suspension or termination of the funding.

7In the BUD fund, what is the maximum amount of funding for each project?

  • In the BUD Fund, the maximum amount of funding for each project is one million HKD.

8What 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.

9What are the eligibility requirements for the BUD funding program?

  • 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.

10What is BUD mainland?

  • To encourage Hong Kong companies to enter the mainland market, the government has set up a “BUD” (Dedicated Fund for 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.

11What is BUD fund FTA?

  • 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).

12What does the review process include in BUD?

  • 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 of the applicant company.