Government Funding Schemes and Business Incentives in Hong Kong

Companies in Hong Kong can benefit from a myriad of government support and funding schemes. They include funding programs to boost business competitiveness, support research and innovation, cultivate talent, and nurture startups. We offer an introduction to the various government funding schemes and other incentive policies available for companies in Hong Kong.

Hong Kong’s long history of pro-business policies and tax environment continues to make it a magnet for global businesses and investors. In addition to providing a business and investment-friendly environment, the city offers a range of government funding schemes aimed at fostering business growth and innovation.

In recent years, many of these government funding schemes have focused on developing strategic sectors, such as technology research and development (R&D), as well as supporting the growth of small and medium-sized enterprises and startups.

In this article, we provide an overview of some of the government funding schemes and incentive policies currently available to companies in Hong Kong.

Government funding schemes for marketing and business development

BUD Fund

In 2012, the Hong Kong government set up the “Dedicated Fund on Branding, Upgrading and Domestic Sales” (“the BUD Fund“) to help Hong Kong-based companies seize opportunities in the Chinese mainland.

The fund was expanded in 2018 to cover the 10 countries in the Association of Southeast Asian Nations (ASEAN) (Singapore, Indonesia, Malaysia, Myanmar, Thailand, Cambodia, Laos, Vietnam, Brunei, and the Philippines).

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Between 2021 and 2023, the fund has been further expanded to include all countries that have signed an Investment Promotion and Protection Agreements (IPPAs) or Free Trade Agreement (FTA) with Hong Kong. Hong Kong currently has 23 IPPAs in place covering 32 countries and regions, as well as eight FTAs. This means the BUD Fund is now applicable to 37 economies, in addition to the Chinese mainland.

In 2023, the BUD Fund launched “Easy BUD”, a streamlined online application mechanism for SMEs. Under the Easy BUD fund, the application procedures take around 30 days – half the time of the usual procedures.

In 2024, the BUD FUND launched “E-commerce Easy” on July 15, to enable enterprises to make use of funding support of the BUD Fund flexibly to implement e-commerce projects for developing their businesses in the Chinese Mainland.

Starting March 14, 2025, each applicant enterprise will be able to submit one “Easy BUD” application every three months, instead of every six months, along with the expansion of the funding scope to cover the establishment of an online sales platform. Furthermore, to assist enterprises in restructuring their business operations in the face of rising trade protectionism and geopolitical tensions, professional fees associated with the establishment of new business entities in eligible markets have been listed in the BUD Fund’s scope of funding.

To ensure financial sustainability, the Government may adjust the funding ceiling and matching ratio from time to time. Currently, the Easy BUD scheme matches funding for eligible projects, meaning companies can receive 25 percent of the funding required from the government, capped at HK$100,000 per application. The cumulative funding ceiling for each company under the BUD Fund is HK$7 million, and funding is limited to a maximum of 70 approved projects for each company. The cumulative funding ceiling per enterprise for “E-commerce Easy” is HK$800,000. Funding for “E-commerce Easy” will be counted towards the cumulative funding ceiling of HK$7,000,000. “Easy BUD” applications and “E-commerce” Easy applications) should not exceed HK$800,000 at any one time.

Private companies that are registered under the Business Registration Ordinance with “substantive business operations” in Hong Kong are eligible to apply.

Detailed guides to General Application, E-commerce Easy, and Easy BUD can be found here.

SME Export Marketing Fund

As with the BUD Fund, the SME Export Marketing Fund (“EMF”) was set up to assist SMEs based in Hong Kong to expand to overseas markets.

The EMF is a government funding scheme that helps companies carry out “export promotion activities” through a variety of mediums, including attending exhibitions in Hong Kong and overseas, conducting business missions, engaging in various advertising and promotion activities, and setting up or upgrading web pages and mobile applications. See the full list of activities here.

The activities must all target overseas markets. However, between April 30, 2021, and June 30, 2026, the eligible activities have been further expanded to large-scale exhibitions targeting the local Hong Kong market as well. Some larger companies may also be eligible to apply during this period.

A full list of the eligible local-focused events can be found here.

Under the EMF, companies can be reimbursed 25 percent of the approved expenditure required for the activities, with a ceiling of up to HK$100,000 per application. Each company can receive up to HK$1 million (US$128,031) in funding. For projects related to establishing or upgrading company websites or mobile applications, the cumulative funding cannot exceed 50 percent of the total expenditure.

Innovation and Technology Fund

Hong Kong’s Innovation and Technology Fund (ITF) is a government funding scheme under the Innovation and Technology Commission (ITC) that provides funding for companies for a wide range of activities related to technology and R&D.

There are a wide range of funding programs under the ITF, broadly aimed at:

1. Supporting R&D;
2. Facilitating technology adoption;
3. Nurturing technology talent;
4. Supporting technology startups; and
5. Fostering an innovation and technology (I&T) culture.

Government funding schemes to support R&D

The ITF provides a range of funding programs aimed at encouraging local research and development (R&D). The various programs are available to a wide range of applicants, including R&D centers, local public research institutes, and locally-registered companies.

Below we have listed a sample of the R&D funding programs available (excluding university-exclusive programs).

Government funding schemes for technology adoption

The technology adoption funding schemes aim to promote the adoption of technology by local companies and the public sector.

The Technology Voucher Program (TVP) is particularly popular due to its broad scope of eligibility and is particularly helpful for SMEs, who can use the funds to upgrade or launch new IT systems, for instance. Nevertheless, TVP ceased accepting new applications after December 31, 2024. The vetting of applications received before the cut-off date was completed in 2025.

The Public Sector Trial Scheme (PSTS) in Hong Kong was launched in March 2011. This scheme aims to provide funding support for the production of prototypes and conducting trials in the public sector to facilitate the realization and commercialization of research and development results. To assist more local technology companies in realizing and commercializing their R&D outcomes and encourage public sector organizations to utilize more local R&D outcomes, the scope of funding of the PSTS has been extended to cover all technology companies conducting R&D activities in Hong Kong since March 2020.

Government funding schemes for new industrialization and developing the NQPF

Hong Kong offers several funding schemes to accelerate new industrialization and support next‑generation production facilities (NQPF), including NIAS, NISS, and ITIF.

The New Industrialization Acceleration Scheme (NIAS), launched in September 2024, provides funding for enterprises in strategic sectors—life and health technology, artificial intelligence and data science, advanced manufacturing, and new energy technologies—to establish new smart production facilities in Hong Kong.

Under the New Industrialization Support Scheme (NISS), three programs are available. The New Industrialization Funding Scheme (NIFS), renamed from the Re‑industrialization Funding Scheme in October 2023, subsidizes manufacturers to set up smart production lines locally. The New Industrialization and Technology Training Programme (NITTP), introduced in 2018, offers 1:1 matching support to help enterprises train staff in advanced and “New Industrialization”‑related technologies. The Manufacturing+ Scheme, launched in November 2025, assists enterprises operating manufacturing activities in Hong Kong in formulating smart production strategies and upgrading existing lines with advanced technologies.

To further promote industry–academia–research collaboration and attract long‑term investment into strategic innovation and technology sectors, the Government established the HK$10 billion Innovation and Technology Industry‑Oriented Fund (ITIF) to leverage public capital and drive private‑sector participation in emerging industries.

Government funding schemes to nurture technology talent

Under the Research Talent Hub (RTH), which merged the previous Researcher Programme and Postdoctoral Hub, there are four main funding schemes:

• Research Talent Hub for ITF projects (RTH-ITF), launched in July 2020, aims to provide funding support for organizations/companies undertaking R&D projects funded by the ITF to engage research talent to conduct R&D work.
• Research Talent Hub for Incubatees and I&T Tenants of the HKSTPC and the Cyberport (RTH-SPC), also launched in July 2020, provides incubatees and I&T tenants of the HKSTPC and the Cyberport with funding support for the recruitment of research talents to conduct R&D work.
• Research Talent Hub for Technology Companies Conducting R&D Activities in Hong Kong (RTH-TC), launched in July 2020, aims to provide funding support for technology companies conducting or planning to conduct R&D activities in Hong Kong to engage research talents to conduct R&D work.
• Research Talent Hub for Companies Subsidized under the New Industrialization Acceleration Scheme (RTH-NIAS) provides relevant companies under the NIASwith funding support for the recruitment of (i) research talents to conduct R&D work and/or (ii) technical personnel required for setting up or operating smart production facilities under the NIAS.

Government funding schemes for startups

Several ITF schemes provide direct funding to Hong Kong-based startups. These include a co-investment scheme to attract venture capital (VC) investment in local startups and a university funding scheme to help students and faculty set up new businesses.

Launched in 2017 and optimized in 2024, the Innovation and Venture Fund (ITVF) operates through two models: the Fund Manager Model and the Co-Investment Model, which differ in structure and focus. The Fund Manager Model requires fund managers to set up LP funds targeting strategic industries with a 1:3 government-to-market matching ratio and strict Hong Kong-related investment requirements. The Co-investment Model is where ITVF acts as a passive investor and co-invests with VC funds selected as Co-investment Partners (CPs) in eligible local I&T startups upon invitation of the CPs. The Co-investment Model uses a deal-by-deal matching approach at a 1:2 ratio and is subject to investment caps.

Meanwhile, the Research, Academic and Industry Sectors One-plus Scheme (RAISe+) funding is provided through one of the universities funded by the University Grants Committee (there are eight such universities as of March 2026). The funding is divided into two stages: the first stage of transformation and realization of R&D outcomes, and the second stage of initiation of the commercialization of R&D outcomes. The matching ratio is up to 2 (Government):1 (industry and university) for the first stage and 1 (Government):1 (industry) for the second stage. Maximum funding support is HK$100 million per project.

Moreover, the Pilot Innovation and Technology Accelerator Scheme (PITAS) aims to attract I&T accelerators with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong and, through their business networks and experience, support the development and needs of I&T start-ups in a more comprehensive and targeted manner. The Government provides up to a ceiling subsidy on a one‑to‑two matching basis between the Government and the applicant. Each applicant will only be allocated funding for one project. The total amount of approved funding is up to HK$30 million.

Fostering I&T culture

The final category of the ITF programs provides funding to support non-R&D projects that still contribute to Hong Kong’s overall I&T industry and culture.

The funds include a sponsorship scheme to support non-profits and companies in Hong Kong to engage in various activities related to I&T education and culture, as well as funding support for first-time patent applicants.

SME Financing Guarantee Scheme

The SME Financing Guarantee Scheme is a loan matching scheme carried out by the Hong Kong Mortgage Corporation Limited Insurance Limited (“HKMCI”), a wholly-owned subsidiary of the Hong Kong Mortgage Corporation Limited (HKMC).

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The scheme helps SMEs and non-listed companies receive financing from approved participating lenders to meet business needs.

The HKMCI currency provides guarantee coverage ranging from

The HKMCI currency provides guarantee coverage ranging from 50 to 100 percent credit facilities of eligible companies, though the application for the special 100 percent loan guarantee has closed in end-March 2024. The application period for the 80 percent and 90 percent guarantee product is until end March 2026. The 50/60/70 percent guarantee products will continue to be in place after this date.

Unlike the 80% and 90% products with concessionary terms offered by the Government, the 50%/60%/70% products are the standard (non-concessionary) tier with higher guarantee fees, no government fee subsidies, and no principal moratorium.

No matter which guarantee product a company is applying for, it must meet the following minimum criteria:

1. Be a company, sole proprietorship, partnership, or unincorporated body of persons that is registered in and has business operations in Hong Kong;
2. Does not carry on the business of a lender or otherwise provide funds available for borrowing in any way;
3. Not be an affiliate of the lender, and not be a listed company or corporation.

The permitted use of the facility, funding periods, amounts, and repayment terms of the various guarantee products are listed below.

For more information and assistance with Hong Kong’s government funding schemes, as well as help with company incorporation, market-entry, tax advisory, accounting, and other business and investment advisory services in Hong Kong, don’t hesitate to reach out to our team by emailing hongkong@dezshira.com.

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