Your Hong Kong competitor just received HK$10 million for their R&D project. Another secured HK$7 million for regional expansion. Both tapped into government funding programmes you probably didn’t know existed.

The HKSAR Government has distributed over HK$56 billion to over 80,000 projects through the Innovation and Technology Fund alone. Add the BUD Fund, Green Tech Fund, and sector-specific programmes, and more than 70 schemes currently accept applications. Yet here’s what matters: these aren’t just capital injections. When the Enterprise Support Scheme (ESS) approves your project after rigorous expert assessment, you’ve gained third-party validation. Private investors notice. Series A conversations become easier. The grant itself may cover half your R&D costs, but the credibility boost often proves more valuable.

So why do qualified businesses miss out? The funding ecosystem spans startups through scale-ups, lab research through market expansion, and individual creativity through industrial transformation. A biotech venture needs different support than an export-focused manufacturer. University spinouts follow different pathways than established SMEs. Applying to the wrong scheme can waste months and damage future applications when assessors see a pattern of poor strategic planning.

You’ll find the practical intelligence here: which government funding schemes in Hong kong match your business model and growth stage, what assessment panels actually prioritise, where applications commonly fail, and how policy shifts through 2026 will reshape available support. Whether you’re commercialising research, entering new markets, or building green capabilities, you’ll know exactly where your next HK$500,000 to HK$100 million could come from.

Overview of Government Funding Support for Businesses in Hong Kong

Why Government Backing Changes Your Business Trajectory

Government funding operates as a strategic instrument, not simply a capital source. When your ESS application survives assessment by independent technology experts, you’ve earned a quality stamp that private equity firms and venture capitalists recognise. The rigorous vetting process means approval signals genuine commercial potential and management capability.

This validation also creates momentum. Clients feel more confident signing contracts, and banks view loan applications differently. The non-dilutive capital matters, but the doors it opens often generate more value than the grant itself.

Hong Kong’s Policy Drivers Behind the Money

Hong Kong’s funding architecture reflects specific economic priorities outlined in the Hong Kong Innovation and Technology Development Blueprint. Four objectives dominate: promoting “new industrialisation” through R&D commercialisation, empowering SMEs (they constitute over 98% of local businesses), strengthening Hong Kong’s super-connector role for Greater Bay Area integration, and accelerating the green transition.

Funding has evolved from broad support towards building integrated ecosystems. Newer initiatives like RAISe+ bundle funding, talent access, and commercialisation assistance.

Common eligibility themes run through most schemes: local incorporation, substantive business operations here, non-listed status, and clean tax compliance records.

Key Government Funding Schemes in Hong Kong by Category

We’ve organised major schemes by business objective rather than government department, as a practical approach for identifying your best options. Five strategic categories cover the funding spectrum, each addressing different growth priorities.

Innovation and Technology

Enterprise Support Scheme (ESS) provides dollar-for-dollar R&D matching up to HK$10 million per project. You retain full IP ownership. Technology-intensive companies with internal R&D capability and clear commercialisation pathways make ideal candidates.

Research Talent Hub (RTH) subsidises STEM researcher salaries – HK$20,000 monthly for Bachelor’s holders, HK$35,000 for PhDs, plus living allowances (PhDs only). Any company with ITF projects or incubatees needing technical teams can apply.

RAISe+ Scheme deploys HK$10 billion to commercialise university research. Elite research teams from UGC-funded universities can access up to HK$100 million per project with mandatory industry sponsorship for deep-tech with disruptive potential.

Logistics

Pilot Subsidy Scheme for Third-party Logistics Service Providers (TPLSP) encourages technology adoption to improve efficiency and productivity. Enhanced 2:1 matching since January 2023 means government covers up to two-thirds of approved project costs, with HK$1 million cumulative ceiling per enterprise. Covers automation, AI applications, warehouse management systems, IoT, and screening equipment for air cargo facilities.

Professional Training on Smart and Green Logistics Scheme (PTSGLS) launched in January 2024 to help logistics practitioners upgrade skills. Industry practitioners completing pre-approved courses receive 80% fee refunds up to HK$30,000 per person. Courses focus on smart and green logistics technologies, with expanded coverage including self-financing courses from October 2024.

Logistics Promotion Funding Scheme (LPFS) supports rebranding modern logistics as “Smart, Innovative, High-end” to attract youth and promote Hong Kong as an international logistics hub. Covers up to 100% of approved project costs for promotional activities including exhibitions, seminars, competitions, and publicity materials. Non-profit organisations, professional bodies, and trade associations in the logistics sector qualify.

Intellectual Property

Patent Application Grant (PAG) assists local companies and individuals applying for patents since 1998. Provides up to HK$250,000 or 90% of total direct costs for patent search-cum-technical assessment, attorney fees, and filing fees. Applications accepted year-round for functional patents with technology elements in any jurisdiction worldwide. First-time patent seekers only – locally incorporated companies, Hong Kong permanent residents, or residents with 7+ years permitted stay qualify. 

SME & Export Development

SME Export Marketing Fund (EMF) reimburses 50% of export activities up to HK$100,000 per application, HK$1 million cumulative. Processing takes roughly 30 working days. Perfect for trade fairs, overseas advertising, and website localisation.

BUD Fund offers comprehensive funding with HK$7 million cumulative limits across 70 projects maximum. Scope covers branding, e-commerce setup, machinery purchases, and market-specific sales campaigns for Mainland and FTA markets.

SME Financing Guarantee Scheme (SFGS) provides government guarantees (not grants) for bank loans. 80-90% coverage on facilities up to HK$18 million helps healthy SMEs lacking collateral.

Startup & Entrepreneur Support

Cyberport Incubation Programme provides up to HK$500,000 over 24 months, plus rent-free workspace for digital tech startups in FinTech, AI, and blockchain. Product launch expected within 12-18 months.

HKSTP Incubation Programmes split by focus: Incu-Tech offers HK$1.29 million over three years for electronics and green tech; Incu-Bio provides HK$6 million over four years for biomedical ventures with lab access.

TSSSU grants HK$1.5 million annually for three years to university-affiliated technology startups across six designated institutions. TSSSU+ adds matching funds when teams secure private investment.

Youth Business Hong Kong offers interest-free loans of HK$180,000 (HK$200,000 for AI projects) for Hong Kong residents aged 18-35 with viable business ideas.

Sustainability & ESG

Green Tech Fund allocates HK$2.5 million to HK$30 million per project from its HK$400 million pool. Priority areas include net-zero electricity, green buildings, transport, and waste reduction with practical Hong Kong applications.

Green Finance Capacity Building reimburses 80% of course fees (100% for students) up to HK$10,000 per person for ESG and sustainable finance qualifications. The scheme targets individuals rather than companies.

Recycling Fund provides HK$15 million in cumulative funding for machinery upgrades through its Enterprise Support Programme. Industry Support Programme funds non-profit sector-wide initiatives at 100%.

Creative & Cultural Industries

CreateSmart Initiative funds predominantly non-profit projects with no specified cap, supporting design, digital entertainment, and architecture through exhibitions, training, and cross-sector collaboration. Industry associations and academic institutions typically apply.

Film Development Fund offers HK$10 million for local productions, HK$9 million for co-productions across multiple sub-schemes covering scriptwriting through distribution.

Arts Capacity Development Funding Scheme provides Springboard Grants (offering a 200% matching grant up to a maximum of HK$4 million for organisational development) and Project Grants (providing funding support of up to HK$800,000 for large-scale productions).

Chinese Medicine

Chinese Medicine Development Fund (CMDF) launched 2019 with HK$1 billion total allocation comprises Enterprise Support Programme and Industry Support Programme covering 10+ schemes. Funding caps range from HK$20,000 to HK$600,000 depending on scheme. Registered practitioners, clinics, manufacturers, wholesalers, and professional bodies qualify.

Matching Your Business Stage to the Right Hong Kong Funding

Identifying your best-fit scheme starts with an honest assessment of where you sit right now. A funding stairway exists – different schemes are designed for each phase of growth. Smart planning means looking two or three steps ahead.

Early-stage startups building initial products need seed capital and infrastructure. University spinouts from the six designated institutions should start with TSSSU, potentially progressing to RAISe+ for exceptionally ambitious deep-tech ventures. Digital technology entrepreneurs find comprehensive ecosystem support through Cyberport’s incubation programme. Hardware, robotics, and biotech ventures requiring specialised labs belong at HKSTP – Incu-Tech for general deep tech, Incu-Bio for life sciences. Young founders aged 18-35 can access interest-free loans through Youth Business Hong Kong.

Established SMEs expanding regionally need different tools. BUD Fund suits comprehensive market entry covering branding, e-commerce, and sales infrastructure for Mainland or FTA markets. EMF works better for tactical, short-term activities like individual trade fairs. Companies needing equipment or working capital but lacking collateral should explore SFGS loan guarantees.

Tech innovators conducting R&D have clear pathways. ESS remains the premier fund for in-house development while retaining IP rights. Pair it with RTH to subsidise your research team salaries. The distinction between creating new technology (ESS, RAISe+) versus adopting existing solutions (the former TVP model) matters greatly.

Sustainability-focused companies have growing support. Green technology developers can access the Green Tech Fund for R&D. Recycling operations upgrade through the Recycling Fund. Build team expertise through Green Finance capacity building subsidies.

Creative professionals tap sector-specific support. Filmmakers access multiple FDF sub-schemes matching their career stage. Arts organisations choose between Springboard Grants (organisational development) and Project Grants (specific productions) under ACDFS. Other creative sectors pursue the CreateSmart Initiative for industry-benefit projects.

How to Apply for Government Funding in Hong Kong

Step 1: Gather Required Documentation

Start by assembling standard corporate documents. Business Registration Certificate, Certificate of Incorporation, and Annual Return (NAR1) verify legal status. Proving substantive Hong Kong operations demands MPF records, office leases, and employment contracts. Most schemes require audited financial statements covering one to three years.

Step 2: Prepare Your Proposal

Study the official application guide thoroughly. Draft a detailed proposal covering objectives, methodology, timeline, KPIs, and expected outcomes. Budget breakdowns need formal supplier quotations meeting each scheme’s procurement rules.

Step 3: Submit Through Online Portals

Most schemes use dedicated platforms – ITCFAS for tech funds, bespoke systems for BUD and Cyberport. Upload all documents through these portals.

Step 4: Wait for Assessment

Applications undergo secretariat screening then expert panel evaluation. Timelines range from 30 working days for simpler schemes to six months for complex grants.

Step 5: Sign Agreement and Receive Funds

Approved applicants sign funding agreements. Disbursement usually comes in tranches tied to progress reports and final audited accounts, managed by key administrators: Innovation and Technology Commission, Hong Kong Productivity Council, Trade and Industry Department, CCIDA, and HKSTP. 

How Professional Advisory Firms Such as InCorp Can Help

You can absolutely apply for government funding independently. Many businesses do. Yet our experience shows companies working with InCorp secure approvals faster and access larger grant amounts. We bring strategic analysis that matches your business stage with optimal funding combinations – often identifying schemes you didn’t know existed. Our team prepares proposals that speak directly to assessment panel priorities, writes budgets that withstand scrutiny, and manages the procurement documentation requirements that trip up most first-time applicants.

For foreign businesses, we streamline the process further. Since most schemes require local incorporation and proof of substantive Hong Kong operations, our company incorporation services establish your legal foundation quickly – from business registration through setting up bank accounts and hiring local staff. Post-approval, we handle progress reporting and final audits, freeing your team to focus on project execution rather than compliance paperwork. We’ve also helped clients combine government grants with R&D tax incentives, creating funding packages that significantly reduce capital requirements for growth initiatives.

Where to Next?

Your next HK$500,000 to HK$10 million sits in government programmes right now. Whether you’re executing necessary university research, expanding into ASEAN markets, or building green technology capabilities, Hong Kong has allocated capital specifically for your growth stage.

The gap between businesses that secure major funding and those that don’t rarely comes down to worthiness – it comes down to knowing which schemes match your situation and how to frame proposals that assessors approve.

InCorp’s specialists have guided hundreds of businesses through this process, from initial scheme selection through final disbursement. Contact InCorp today to identify which programmes fit your business and strengthen your application for approval.