Hong Kong Government Funding and Support: Grants, Loans and Incubation Programmes

Hong Kong Government Funding and Support for Businesses and Startups

Hong Kong runs a structured ecosystem of government funding and support for businesses at every stage, early-stage startups, established SMEs, foreign investors. Five administering bodies deliver the schemes: the Trade and Industry Department, the Innovation and Technology Commission, Cyberport, HKSTP, and InvestHK. Each programme targets a specific need, from brand development and technology adoption to export expansion, loan guarantees, incubation, and inward investment. Funding ceilings, matching ratios, and application windows change with each programme round. Check the official scheme page for current figures before applying.

Trade and Industry Department Schemes

The Trade and Industry Department (TID) administers three major funding programmes for Hong Kong enterprises. These help businesses expand into new markets, upgrade operations, and access financing.

Hong Kong Business Grants: The BUD Fund

The Dedicated Fund on Branding, Upgrading and Domestic Sales, the BUD Fund, supports Hong Kong enterprises developing brands, upgrading operations, and expanding sales in specified markets. An eligible enterprise must be registered under the Companies Ordinance or the Business Registration Ordinance. The fund operates on a matching basis: the government reimburses a portion of approved project costs. Covered markets include Mainland China, the ASEAN countries, and other free trade agreement partners. Each enterprise can submit multiple applications, subject to a cumulative funding ceiling. An application that fails to demonstrate a clear link between the proposed project and a specific target market is likely to be rejected. For detailed eligibility criteria and application procedures, see the dedicated BUD Fund page.

Hong Kong SME Financial Support: SME Export Marketing Fund

The SME Export Marketing Fund supports Hong Kong SMEs participating in export promotion activities, trade fairs, missions, online exhibitions. The fund operates on a matching basis, reimbursing a portion of eligible expenses. An eligible enterprise must be a Hong Kong enterprise with significant business operations in Hong Kong. The fund carries a per-project funding ceiling and a cumulative ceiling per enterprise. Claims must be submitted with original receipts and proof of attendance. If an enterprise submits a claim for an activity that has already been funded under another government scheme, the claim will be disallowed. For a full list of eligible activities and application deadlines, see the SME Export Marketing Fund page.

Hong Kong SME Financial Support: SME Financing Guarantee Scheme

The SME Financing Guarantee Scheme provides government guarantees on loans made by participating lenders. It helps SMEs obtain financing from banks and other financial institutions when they might not otherwise qualify. The government guarantees a portion of the loan principal, reducing the lender’s risk. The scheme covers equipment loans, working capital loans, and revolving credit facilities. A business that has been operating for less than one year may face additional documentary requirements to satisfy the lender’s credit assessment. If a borrower defaults, the lender can call on the guarantee after exhausting standard recovery procedures. For details on participating lenders, guarantee ratios, and application procedures, see the SME Financing Guarantee Scheme page.

Innovation and Technology Commission Programmes

The Innovation and Technology Commission (ITC) oversees programmes that support technology adoption and innovation among Hong Kong businesses.

Hong Kong Startup Funding Schemes: Technology Voucher Programme

The Technology Voucher Programme (TVP) supports the adoption of technology to improve productivity or upgrade business processes. Eligible projects include purchasing, leasing, or customising technology solutions, enterprise resource planning systems, cybersecurity tools, automation equipment. The programme operates on a matching basis. The government reimburses a portion of approved project costs. An eligible enterprise must be registered under the Companies Ordinance or the Business Registration Ordinance. The programme excludes projects where the technology solution is developed in-house by the applicant’s own staff. If a project is approved, the applicant must complete it within the approved period and submit an audited final report before the reimbursement is released. For a full list of eligible technology categories and application procedures, see the Technology Voucher Programme page.

Government Incubation Programmes

Hong Kong operates two major government incubation programmes. Each targets a specific sector.

Hong Kong Government Incubation Programmes: Cyberport

Cyberport runs incubation and acceleration programmes for digital businesses. The Cyberport Incubation Programme supports early-stage technology startups with funding, mentorship, and co-working space. The Cyberport Accelerator Programme supports growth-stage companies with intensive mentorship and networking opportunities. Both programmes provide access to Cyberport's ecosystem of investors, corporate partners, and industry experts. Admission is competitive. An applicant must present a viable business plan and demonstrate that the core product is digital in nature. A startup that is admitted but fails to meet milestone reviews may have its funding suspended. For detailed programme structures, application windows, and eligibility criteria, see the Cyberport page.

Hong Kong Government Incubation Programmes: HKSTP

The Hong Kong Science and Technology Parks Corporation (HKSTP) runs incubation and acceleration programmes for technology companies. The HKSTP Incubation Programme supports early-stage technology startups with funding, laboratory facilities, and business development support. The HKSTP Accelerator Programme supports growth-stage companies with access to corporate partners and investors. Both programmes provide access to HKSTP's facilities and infrastructure. Incubatees are typically required to maintain a physical presence at an HKSTP site for the duration of the programme. A company that exits the programme early may be required to repay a portion of the funding received. For detailed programme structures, application windows, and eligibility criteria, see the HKSTP page.

Inward Investment and Residence Routes

Hong Kong actively encourages foreign direct investment through dedicated government departments and investment schemes.

InvestHK Advisory Services

InvestHK is the government department responsible for attracting and supporting foreign direct investment. It provides free advisory services to overseas and mainland companies setting up in Hong Kong. Services include market entry advice, business matching, and assistance with company registration and licensing. InvestHK also organises industry events and networking opportunities. The department does not provide funding or grants. Its role is to facilitate the setup process and connect investors with private-sector service providers. For a full description of services and how to engage with InvestHK, see the InvestHK page.

New Capital Investment Entrant Scheme

The New Capital Investment Entrant Scheme (CIES) was relaunched on 1 March 2024 and provides a residence route for individuals making qualifying investments. The scheme requires applicants to invest a specified amount in permissible asset classes, including equities, bonds, and investment funds. Successful applicants and their dependants may be granted permission to reside in Hong Kong. The investment must be maintained throughout the residence period. If the value of the portfolio falls below the threshold, the applicant is not required to top it up, but they may not withdraw the shortfall. For the current qualifying investment requirements, application process, and permissible asset classes, see the CIES page.

Venture Capital and Angel Investment Landscape

Hong Kong has a growing ecosystem of angel investors and venture capital firms. Government programmes support this ecosystem through co-investment schemes and matching grants. For an overview of the current landscape and how government programmes support venture capital, see the Venture Capital page.

BUD Fund Project Eligibility

The BUD Fund supports projects that develop brands, upgrade operations, or expand sales in specified markets. Eligible projects include branding campaigns, production upgrades, and market entry activities. A project that consists solely of routine operational expenses without a structural change to the business is unlikely to qualify. For a full list of eligible project types and how to apply, see the BUD Fund page.

Crowdfunding Rules and Regulations

Crowdfunding campaigns in Hong Kong are subject to legal and regulatory requirements under the Companies Ordinance and the Securities and Futures Ordinance. A campaign that offers a return on investment may constitute a collective investment scheme and require authorisation from the Securities and Futures Commission. For the specific requirements and compliance obligations, see the Crowdfunding Rules page.

Bank Lending and Trade Finance

Hong Kong SMEs can access bank lending and trade finance products through participating lenders. The SME Financing Guarantee Scheme supports these products by providing government guarantees. A lender will still conduct its own credit assessment before approving a facility. The guarantee reduces, but does not eliminate, the lender’s exposure. For an overview of available products and how the scheme works, see the Bank Lending page.

Grant Application Tips

Several common factors make a Hong Kong government funding application more likely to be approved. Clear project objectives. Realistic budgets. Strong supporting documentation. An application that copies generic text from a website or fails to address the specific assessment criteria will be scored down. For a detailed guide on improving your application, see the Grant Application Tips page.

Summary of Key Schemes

For current funding ceilings, matching ratios, and application windows, refer to the official scheme pages linked above.