Why is the BUD Fund complicated to apply? One of the reasons is to show the relation between the Hong Kong registered applicant company and the overseas local business company. According to the BUD application guideline, only these 3 company structures are qualified to eligibility:
- The applicant company owns >50% of the Local business
In order words, the applicant is the mother company of the local business.
- Hong Kong applicant company has one natural person owning >30% who also owns >50% of the Local business
The same natural person (Need not a Hong Kong permanent resident) is the absolute major shareholder of both the Hong Kong applicant company and the Local
- Hong Kong applicant company and the Local business have a group of common natural persons as totally owning shareholders.
The same group of natural persons (Need not a Hong Kong permanent resident) are the 100% owning shareholder of both the Hong Kong applicant company and the Local business.
No other company structure is qualified to apply the BUD Fund. Some common structures such as holding company or offshore owning company (which is also known as “Sister companies”) are not eligible to the BUD Fund. BizMagnet consultant experiences a lot of unqualified applicant due to the above issue. If you like to know more about the eligibility of the BUD Fund, please contact BizMagnet.