Enquiries

Answer

The eligibility of applicants includes:
a. Registered in Hong Kong under the Business Registration Ordinance (Chapter 310),
b. Non-listed company, and
c. With substantive business operations in Hong Kong.

With substantive business operations means that the applicants have actual operations and business transactions. In consideration of this, reference will be made to a basket of factors in respect of the applicant including type of business operations in Hong Kong, number of employees in Hong Kong, information of customers/ clients and whether profits are tax assessable in Hong Kong. A shell company or an enterprise having most of its main business operations outside Hong Kong will not be regarded as having substantive business operations in Hong Kong.

The applicant has to submit the application form together with relevant documentary proof of substantive business operations in Hong Kong as below:
a. Employees ’ records;
b. Financial records;
c. Business transactions/operations information (e.g. business contracts, invoice, shipping documents, records of stock purchased and goods sold etc).

(For details of the above documentary proof, please refer to the Guide to Application.)

Answer:

Listed parent company and its non-listed subsidiary companies are separate legal entities. Accordingly, despite the parent company is listed in or outside Hong Kong, its subsidiary companies are eligible for this funding support as long as they are non-listed companies in and outside Hong Kong, registered in Hong Kong under the Business Registration Ordinance (Chapter 310) and have substantive business operations in Hong Kong.

Answer:

This funding support is not only open for SMEs. Enterprises which are non-listed companies, registered in Hong Kong under the Business Registration Ordinance (Chapter 310) and having substantive business operations in Hong Kong are eligible for applying this funding support.

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There is no limitation on industry sectors for applying the funding support. The projects under applications need to achieve the target of exploring and developing the FTA and/or IPPA markets through developing brands, upgrading & restructuring business operations and/or promoting sales in the FTA and/or IPPA economies.

Answer:

Enterprises that do not have business or operations in the FTA and/or IPPA economies at the time of application are still eligible for applying the funding support provided that they are registered in Hong Kong under the Business Registration Ordinance (Chapter 310), non-listed and having substantive business operations in Hong Kong.

Answer:

The BUD Fund aims to provide funding support to individual Hong Kong enterprises in undertaking projects to develop brands, upgrade and restructure their business operations and/or promote sales in the FTA and/or IPPA economies for exploring and developing the markets. As listed companies have more funds raising channels for selection, all the listed companies, including those listed on Hong Kong Main Board and GEM, whether in or outside Hong Kong, are not eligible for the application in order to enable enterprises that have actual needs can benefit from the Programme.

Answer:

If the project is implemented for the listed company in the FTA and/or IPPA economies, since listed companies have more funds raising channels for selection, the applications are not eligible. This can enable more enterprises that have actual needs benefit from the Programme.

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The enterprise can submit another funding application before the completion of an ongoing project funded by the Programme, if the total number of projects and the cumulative funding amount approved do not exceed the corresponding caps (70 approved projects with cumulative funding ceiling of HK$7,000,000). The applicant is required to provide relevant information of the approved projects (including the project reference no., approved funding amount and project duration etc.) and other applications being processed on the application form.

The enterprise should note that the project progress or performance of the previously approved projects may affect the vetting results of their new applications. The Programme Management Committee will also assess the applications case by case by considering the necessity and capability of the applicant in managing different projects simultaneously.

Answer:

Ongoing projects being undertaken by the enterprise (related to developing brands, upgrading & restructuring business operations and/or promoting sales in the FTA and/or IPPA economies) will not be funded unless the following criteria are fulfilled:

• the remaining part (not yet completed) of the project can be conducted as a stand-alone project according to the project scope;
• the commencement and completion dates of the remaining part of the project can be clearly identified; and
• the budget for the remaining part of the project can be separately provided and justified.

Answer:

If the equipment or computer software procured is essential for project implementation and has specialized use instead of general purpose application, the cost can be funded under this programme (general purpose equipment includes desktop computer, telecommunication equipment and printer etc., whereas general purpose computer software includes operating system, database and word processing software, etc.)

The cost of procuring the equipment/ computer software should not exceed 70% of the total budgeted expenditure of the project.
The total budgeted expenditure should not only include the cost of the equipment /computer software procured. Other supporting services like equipment or computer software testing, technical training, result evaluation and subsequent follow up actions should also be covered in order to ensure effective utilization of the equipment / computer software.

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In general, the advertising costs (e.g. newspaper, magazines, television, radio, internet, billboard and poster advertising, etc.) can be funded.
The advertising costs should not exceed 50% of the total budgeted expenditure of the project.

Answer:

Salary of the existing employees is regarded as the routine operating expenses, so using existing employees to implement the projects will not be funded. If the enterprise needs to establish new positions for implementation of the funded project, the salary of the additional employees in these new positions can be funded.

For the requirements of recruiting additional staff, please refer to the Guide to Application and the Annex: General Guidelines on Staff Recruitment.

Answer:

If the project is completely implemented in Hong Kong, the enterprise can apply for this funding support provided that the project will facilitate the enterprise to explore and develop the FTA and/or IPPA markets.

The applicant has to state the implementation plan in the application form to demonstrate how the related project will enhance its competitiveness and facilitate its business development in the FTA and/or IPPA markets.

Answer:

The enterprise can apply for funding support for its project that is completely implemented in the FTA and/or IPPA economies, provided that the applicant meets the eligibility criteria (refer to question A1) and the project under application aims at enhancing the competitiveness of the company in the FTA and/or IPPA economies through developing brands, upgrading & restructuring business operations and/or promoting sales. The applicant also has to provide evidence showing its relationship with the factory/business premises in the FTA and/or IPPA economies for project implementation. The evidence includes submission of the following documentary proof:

• Business Registration Certificate of the factory/business unit in the FTA and/or IPPA economies (For details of the eligibility information, please refer to the Guide to Application.) or

The enterprise has to state the implementation plan in the application form to demonstrate how the related project will enhance its competitiveness and facilitate its business development in the FTA and/or IPPA markets.

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Subject to the funding balance, The programme is open for application all year round.

Answer:

Holistic Business Plan is the medium to long-term development roadmap for the enterprise to develop its FTA and/or IPPA business in the coming 3 to 5 years. The scope must be related to brands development, business operations upgrading & restructuring or sales promotion.

Key points of the contents include:
(a) The threats and opportunities encountered by the enterprise or reasons leading to the intent of developing the FTA and/or IPPA business,br /> (b) The goals and strategy adopted by the enterprise for developing the FTA and/or IPPA business,
(c) Key initiatives in different phases of the FTA and/or IPPA business development (including the project which is under application), as well as the implementation timelines and responsible parties,
(d) Resources for implementation and the expected results.

Answer:

Content of the Holistic Business Plan is covered by the Application Form. The applicant only needs to complete the corresponding section of the Application Form and does not need to submit a separate Holistic Business Plan.

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The Holistic Business Plan can be prepared and developed by the applicant itself, however the relevant internal expenses for drawing up the Holistic Business Plan will not be funded.

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Contribution in-kind is not acceptable. The enterprise has to contribute no less than 50% of the total approved project cost in cash.

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If the applicant has successfully applied more than 1 funded projects, it has to prepare an individual bank account for each project such that the accounts of receipts and expenditures for different funded projects are separated. The accounts are subject to individual financial audits.

Answer:

If the parent company and its subsidiaries or different subsidiary companies of the same group are not “related enterprises”, the cumulative funding ceiling of these subsidiary companies can be separately calculated.

Definition of "related enterprises”: Two enterprises registered as different businesses under the Business Registration Ordinance (Cap. 310) but having common shareholders (up to the ultimate level of natural persons if the enterprises are held by companies) whose equity interest is 30% or more in each of the enterprises and having the same business nature.

The applicant has to provide the information of funding support applications made by its related enterprises in the application form for evaluation. (For details of the required information, please refer to the Guide to Application.)

Answer:

If a particular project has been/ will be granted from other sources of funding support provided by the Government/ the authorities in the FTA or IPPA markets or other sources of sponsorship/donation, the project will not be funded under the BUD fund.

If the company has applied other sources of funding support provided by the Government/ the authorities in the FTA or IPPA markets, or other sources of sponsorship/donation for the same project and the application was not approved or it is still under the vetting process, the applicant has to declare the relevant project information in the application form.

Answer:

Upon acceptance of this funding support, the enterprise, being the applicant of the funded project, will be responsible for the project implementation and management, observance of the terms in the funding agreement and prudent use of the funding.

If the applicant engages a qualified service provider for preparing the Holistic Business Plan or other consultant(s)/contractor(s) for project implementation, the applicant will also be responsible for the project management.

The applicant has to regularly submit report(s) (includes progress/final report(s)) and audited accounts in accordance with the programme requirements. The enterprise also needs to provide necessary support to facilitate the BUD Fund Implementer to conduct on-site checking.

The enterprise will be required to share its project experience and results with the industry under this BUD Fund through participation in promotional activities such as seminars, conferences and exhibitions etc. or contribution of materials for publication.

(For requirements of reports and audited accounts submission (including progress/final report(s)), please refer to the Guide to Application.)

Answer:

The enterprise should analyze its current status quo and the opportunities in the FTA and/or IPPA markets etc. and then formulate a Holistic Business Plan related to brand development, business operations upgrading & restructuring and/or sales promotion. If the enterprise needs to engage a service provider to develop the Holistic Business Plan, it can apply for this funding support. However, if the Holistic Business Plan is prepared by the enterprise himself, relevant expenses incurred will not be funded.

After developing the Holistic Business Plan, the enterprise should implement the measures (projects) in the Holistic Business Plan stepwise. The expenses incurred in the implementation of the project can be funded under this Programme. (The cumulative funding ceiling per enterprise is HK$7,000,000).

If the enterprise encounters difficulties in implementing the whole or part of the project, it can engage consultant(s)/contractor(s) for assistance and the related expenses can be funded under this Programme.

Answer:

The BUD Fund covers a wide range of scope. The applicant can propose any initiatives, including specific measures using e-commerce platforms for developing brands and/or exploring sales in the FTA and/or IPPA economies. The applicant has to submit an application form to demonstrate how the related actions will enhance its competitiveness and facilitate its business development in the FTA and/or IPPA markets.

Answer:

Those service providers which are not registered in Hong Kong, are not eligible for providing services to the enterprises on developing the Holistic Business Plan. This Programme aims not only to facilitate the Hong Kong enterprises to develop their business in the FTA and/or IPPA economies through the funding support from the Government but also to benefit the Hong Kong service providers, this in turn will drive the development of related industries in Hong Kong.

The qualified service provider that is engaged by the enterprise can sub-contract part of their work (not more than 50% of the service fee payable to the qualified service provider) to appropriate FTA or IPPA economies service provider(s) based on the actual needs. There is no eligibility for the service providers that undertake the sub-contracted work.

Besides, if engagement of other consultant(s)/contractor(s)/supplier(s) is/are necessary for the project implementation (other than development of the Holistic Business Plan), e.g. equipment supplier, material supplier, advertising agency, public relations company and product design firm, there will be no eligibility for them and they can be oversea or FTA economies markets companies.

Answer:

The enterprises are free to select qualified service providers for the services needed. When the enterprise intends to engage a service provider, please ensure that the service provider meets the relevant requirements (as listed in the “Guide to Application".)

Answer:

If the applicant enterprise employs a service provider for developing the Holistic Business Plan, it has to sign an agreement with the service provider to specify the service requirements, contents, implementation schedule, fee and results, etc. so as to guarantee the interests of the enterprise.

The terms and conditions of the agreement should be determined by the enterprise and its selected service provider.

Answer:

The engagement of the service provider for drawing up the Holistic Business Plan or the consultant(s)/contractor(s)/supplier(s) for project implementation must follow the procurement procedures published by the BUD Fund Implementer.

The enterprise cannot engage service providers/consultants/contractors/suppliers that have conflict of interest with it, e.g. the owners, shareholders or management of them are the owners, shareholders, management or relatives of the applicant. (For the related procurement procedures, please refer to the Guide to Application.)

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If the enterprise needs to engage a company inthe FTA or IPPA economy to provide materials or services for project implementation, the local currency can be used to settle the payment.

Answer:

In order to ensure effective implementation of the funded project, the enterprise has to comply with the requirements of the Programme during implementation of the project, including:

• The applicant has to sign a designated agreement with the BUD Fund Implementer.
• If the applicant opts to receive initial payment, The enterprise has to open a separate bank account for processing all receipts and payments of the project, and related statement of income and expenditure has to be audited by the third party.
• The enterprise has to submit the progress/final report(s) and the audited accounts as required according to the project duration.
• The BUD Fund Implementer will arrange consultant(s) to perform on-site checking (approx. one day) for the selected projects in order to monitor the project progress and results.

(For the details of the report(s) and audited accounts submission, please refer to the Guide to Application.)

Answer:

The Government has the right to withhold or terminate the disbursement of fund for the approved project under the following situations:

• The enterprise fails to submit the progress/final report(s) or audited accounts according to the specified requirements and within the stipulated deadlines.
• The Government is not satisfied with the project progress.
• The Government has reasons to believe that the chance of project completion is slim.
• The enterprise breaches the terms in the agreement.
• The project has to be terminated in consideration of the public interest.

Answer:

Based on the implementation status and nature of individual projects, the BUD Fund Implementer will arrange consultant(s) to perform on-site checking (approx. one day) in order to monitor the project progress and results.

The BUD Fund Implementer will consider the following factors to select projects for on-site checking:

• The complexity and scale of the project implementation.
• The quality of the progress/final report(s) submitted by the applicant.
• The work/results of the project implemented by the applicant and the deviation from the content of the approved project.
• The amendments made by the applicant during the project implementation
• The past performance on the project implementation of the applicant or the service provider engaged.

The BUD Fund Implementer will liaise with the related enterprises and make appointments for the on-site checking.

Answer:

The enterprise must implement the measures in accordance with the approved project content. If any project content (such as project completion time, implementation plan, expenditure budget, and project coordinator, etc.) needs to be changed due to force majeure events, the enterprise must first contact the Implementer to submit a written application for changes to the project, stating the content and reasons for the changes. The Implementer will consider the project content, its nature and the possible impact on the project’s effectiveness proposed by the enterprise. The relevant application may be submitted to the Program Monitoring Committee for approval. The enterprise cannot modify the project or implement the modified project content by itself before receiving the official approval notice from the Implementer, otherwise the related project expenses may not be funded. If the changed application is not approved, the enterprise must implement the originally approved project content.

Answer:

Although the actual project expenditures may be somewhat different from the original project budget, it still has to comply with the funding ceiling of various expenses (such as advertising expenses cannot exceed 50% of the total project expenditure), if some actual expenses exceed the relevant funding ceiling, Enterprises need to bear the expenses exceeding the funding ceiling by their own cost.