Funding Schemes for SMEs in Hong Kong

Key Takeaways: 

• The Hong Kong government provides over 70 funding programs, including the BUD Fund and EMF fund, offering millions in grants to help businesses scale across Mainland China and global markets.
• The TSF fund supports non-profit and professional bodies with up to 90% funding to launch community driven seminars, research, and exhibitions
• Hong Kong offers a world-class business environment offering a territorial tax system with potential 0% offshore tax, 100% foreign ownership, and a rapid incorporation process.

Overview of Government Funding Schemes for SMEs in Hong Kong

To foster SMEs growth, the Hong Kong government offers over 70 funding programs, each featuring unique scopes designed to promote and support the development of Hong Kong local startups across various sectors.

Below are the primary government funding schemes currently available for application:

Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund)

Funding Ceiling

7,000,000 HKD

Funding Scope

This initiative provides financial backing for non-listed Hong Kong firms to expand their operations across two primary regions: the Mainland market and international markets covered by FTA or IPPA. By supporting sales growth and operational upgrades, the program enables businesses to accelerate their global expansion.

Eligibility

1. Non-listed enterprises registered in Hong Kong
2. Have substantive business operations in Hong Kong

SME Export Marketing Fund (EMF)

Funding Ceiling

1,000,000 HKD

Funding Scope

This initiative provides financial backing to SMEs that aim to expand their markets outside Hong Kong by participating in export promotion activities.

Effective from 30 April 2021 until 30 June 2026, The Export Marketing Fund covers a broad range of promotional efforts designed to boost your brand’s international presence. The scope includes:

• Physical & Virtual Events: Coverage for online trade exhibitions and physical business missions outside of Hong Kong.
• Exhibitions & Trade Fairs: Participation in trade shows located overseas or those held in Hong Kong that focus on international or local buyers.
• Web & App Development: Costs related to building or upgrading a company website or mobile app, given that the primary focus is reaching international customers.
• Targeted Advertising: Placements in trade journals and publications specifically aimed at oversea markets.

Eligibility

1. Non-listed enterprises registered in Hong Kong
2. Have substantive business operations in Hong Kong
3. Must not be the organiser/co-organiser/service provider or a related company of the organiser/co-organiser/service provider of the promotion activity and the related services covered by the application

Trade and Industrial Organisation Support Fund (TSF)

Funding Ceiling

5,000,000 HKD

Funding Scope

This initiative provides financial support to non-profit-distributing organisations such as trade and industrial organisations, professional bodies or research institutes, enhancing their competitiveness across different sectors.

The fund offer support to diverse projects aimed at community driven development, such as:

• Seminars, specialized workshops, and professional conferences.
• Industry exhibitions and promotional events.
• Comprehensive research studies.

The TSF fund can cover up to 90% of the total approved project costs, approved projects should be completed within 3 years.

Eligibility

1. Non-profit-distributing organisations
2. Statutory organisations or organisations registered under the laws of the Hong Kong Special Administrative Region

For more details, please visit https://www.smefund.tid.gov.hk/eindex.html.

The Hong Kong Advantage: Funding Schemes and a Global Launchpad for Your Enterprise

Beyond access to over 70 funding schemes, incorporating in Hong Kong places your business at the heart of a world-class support ecosystem designed for long-term growth and high profitability.

Hong Kong is a premier destination for offshore company formation. It serves as an efficient gateway to the Chinese market and offers a territorial tax system where offshore profits can qualify for a 0% offshore tax rate.  By the end of 2025, the number of companies registered in Hong Kong reached an all-time high of over 1.55 million. Businesses can be incorporated in just a few days with 100% foreign ownership, minimal paperwork, and no restrictions on capital flow.

For those who want to know about how to choose a good company formation agent in Hong Kong, you can refer to our blog – Chapter 7 How To Choose a Reputable Licensed Agency.  If you are ready to start a business registration in Hong Kong, you can also contact our Hong Kong incorporation team at info@getstarted.hk.

Frequently Asked Questions about funding schemes for SMEs in Hong Kong