10 Best SME Funding for Non-Residents in Hong Kong [2025]

2025-09-25

10 minute read

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The Hong Kong government actively promotes its SME sector to attract international businesses, valuing the innovation, capital, and global connections that non-resident founders bring to the local economy.

By offering a range of SME funding and incentives, the city drives business growth and establishes itself as a top destination for global entrepreneurship.

However, non-residents often face challenges like uncertainty over eligibility, the need for a local presence, and compliance requirements. 

This guide identifies 10 top funding opportunities available to non-residents, and details key requirements, application procedures, and compliance strategies to help your business secure these incentives successfully.

Let’s get started.

What is SME Funding?

SME funding refers to financial support specifically designed for Small and Medium Enterprises. This includes loans, grants, subsidies, and investment programs that help smaller businesses start up, grow, or overcome financial challenges.

In Hong Kong, SME funding comes from various sources: government schemes, banks, private investors, and specialised funding bodies. These programs typically offer better terms than regular business loans, such as lower interest rates, reduced collateral requirements, or partial government loan guarantees.

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Fun fact:  Did you know SMEs make up over 98% of all businesses in Hong Kong?  Only about 2% are large corporations, yet SMEs are the real foundation of the economy, creating most of the jobs and driving local innovation.

Why Does Hong Kong Support SMEs?

The goal is to bridge the gap for smaller businesses that struggle to access traditional financing, helping them compete with larger corporations and contribute to economic growth. 

This support is particularly important because SMEs make up the majority of Hong Kong businesses and create most jobs. By providing better loan terms and reduced barriers, the government ensures these vital businesses can grow, innovate, and remain competitive in both local and international markets.

Key Eligibility Rules for Non-Residents

To access Hong Kong's government funding schemes, non-residents must meet specific criteria:

  • Incorporation in Hong Kong: The company must be registered under the Business Registration Ordinance (Cap. 310) and be a non-listed entity.

  • Registered Address and Company Secretary: A local registered address and a company secretary who is a Hong Kong resident or a licensed corporate service provider are required.

  • Substantive Business Operations: The company must demonstrate active operations in Hong Kong, such as having a physical office, hiring local staff, and engaging in business activities within the city.

  • Local Presence: While a Hong Kong ID is not mandatory for directors or shareholders, maintaining a physical presence in Hong Kong can strengthen applications and facilitate processes like opening local bank accounts.

  • Compliance with Reporting: Failure to adhere to reporting obligations can result in the forfeiture of funding or penalties. 
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Explore: Incorporating a company in Hong Kong is the first step to accessing most incentives. Read more in our guide to Setting up a Company in Hong Kong .

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SME Funding Options for Non-Residents

Once a business is incorporated in Hong Kong, non-resident SMEs can access government funding schemes and incentives to support scaling and development.. 

The tables below list the 10 main SME funding programmes, including their specifications and funding limits.

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Disclaimer: The information is updated as of September 2025. Programme details are subject to change. Always verify current requirements with official sources before applying.

Incubation & Acceleration

These programs are accessible to non-residents who establish teams or R&D operations in Hong Kong. They offer the strongest ecosystem and value-add, providing funding, mentorship, and access to industry networks to accelerate growth.

Programme Funding Best For Key Requirement
Cyberport Incubation Up to HKD 500,000 Early-stage digital tech startups Must be HK-incorporated with a product plan
HKSTP Incubation Multi-year financial support + lab access Tech, biotech, and green innovation startups Local R&D presence required
HKSTP Co-Acceleration Equity funding up to HKD 15.6M Growth-stage deep tech companies Must be HK-incorporated, global scaling focus

R&D & Innovation (ITF Family)

The Innovation and Technology Fund (ITF) family offers significant funding opportunities for research and development projects. These programmes have high funding ceilings, making them suitable for large-scale R&D efforts.

However, they come with strict audits to ensure compliance. Non-residents must ensure that all work is conducted in Hong Kong and is properly evidenced through documentation, such as local contracts, invoices, and staff contributions.

Programme Funding Best For Key Requirement
Enterprise Support Scheme (ESS) Up to HKD 10M (1:1 co-funding) Large-scale R&D projects R&D conducted in Hong Kong
Other ITF Streams (ITSP, PRP, RTH, RFS, PSTS, CRS, FBL) Varies (hundreds of thousands to millions) Sector-specific innovation and talent schemes Each has niche rules and often requires local collaboration

Marketing & Expansion

The SME Export Marketing Fund (EMF) and the BUD Fund are among the most accessible programmes for non-resident SMEs looking to expand into new markets, particularly in export-driven sectors.  

These schemes support activities like trade exhibitions, marketing campaigns, and market research. 

The BUD Fund pairs particularly well with the Hong Kong Trade Development Council(HKTDC). You can use the funding for exhibition costs while leveraging HKTDC's established networks for faster market entry into your target regions.

However, both programmes are documentation-heavy and require detailed proof of expenses, including receipts, contracts, and invoices. Non-residents must ensure they maintain thorough records to ensure their claims are accepted and avoid delays or denials.

Programme Funding Best For Key Requirement
SME Export Marketing Fund (EMF) Up to HKD 1M cumulative Export-driven SMEs seeking overseas visibility HK-registered, substantive local operations
BUD Fund (Branding, Upgrading, Domestic Sales) Up to HKD 7M cumulative Expansion into Mainland China & FTA/IPPA markets HK-incorporated company with an eligible market plan
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Important: Schemes like EMF and BUD Fund work on a reimbursement basis. If you don’t keep complete records (contracts, invoices, receipts), your claim can be denied even after approval.

Industry-Specific Funds

Hong Kong offers several targeted funding schemes for specific industries, such as logistics, transport, and recycling. 

These funds are especially beneficial for companies operating in tech-driven sectors like AI, IoT, and automation. 

While the eligibility for these schemes is narrow, focusing on specific sectors, the funding available is meaningful and can provide significant support for businesses looking to innovate or expand in these areas. 

However, non-residents must meet sector-specific requirements to support key initiatives in innovation, sustainability, and regional connectivity. This is crucial for Hong Kong to remain a leading international city and a premier destination for SME funding across Asia.

Programme Funding Best For Key Requirement
Pilot Subsidy Scheme (TPLSP) Up to HKD 2M (⅔ cost covered) Logistics firms adopting AI, IoT, and automation HK-registered logistics providers
Smart Traffic Fund HKD 1B pool Vehicle/transport-related innovation Project must relate to transport/traffic
Recycling Fund Project-based, varies Recycling and green innovation businesses HK-incorporated recycling sector firms
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Note: Even sector-specific subsidies require a Hong Kong business presence. Non-residents should be prepared to show substantive operations to qualify.

Alternative Options for Non-Residents Who Don’t Qualify 


Not all non-resident founders will qualify for government incentives. Hong Kong offers several private funding options that can help startups and SMEs grow without strict local operation requirements:

Bank Loans for SMEs

  • What it is: Working capital and expansion loans from major banks such as HSBC, Standard Chartered, and DBS.
  • Funding range: Varies depending on creditworthiness and business history.
  • Best for: Established SMEs with financial track records needing capital for operations, hiring, or expansion.

Banks often prioritise companies with audited accounts, local directors, and a Hong Kong bank account.

Venture Capital and Angel Networks

  • What it is: Equity funding for high-growth startups, particularly in tech, fintech, green innovation, and biotech.
  • Funding range: HK$500,000 to HK$50 million.
  • Key investors: Alibaba Entrepreneurs Fund, Gobi Partners, Hong Kong X-Tech Startup Platform, Nest VC network.
  • Best for: Startups with a scalable product or technology and potential for regional/global expansion.

Private Incubators and Accelerators

  • Examples: Brinc, Betatron, Nest.
  • What it offers: Mentorship, co-working space, early-stage funding, and access to investor networks.
  • Best for: Early-stage startups looking for guidance and market validation without needing full-time local operations.

Some programmes actively support non-residents and international founders, helping them navigate Hong Kong regulations and market entry.

Crowdfunding & P2P (Peer-to-Peer) Lending

  • Platforms: AngelHub, Kickstarter, Indiegogo, WeLend, GoCredit.
  • What it offers: Raise funds from the public or private lenders without giving up large equity stakes.
  • Best for: Product-based businesses, consumer tech, and startups with marketable prototypes.

Combine reward-based crowdfunding with social media (LinkedIn, Instagram, Facebook) to build awareness, generate pre-orders, and engage backers. Share behind-the-scenes content, demos, and updates to create trust. Early supporter social proof drives momentum and helps reach funding goals faster.

Microfinance & Small Business Loans

  • Examples: YBHK Microfinance (up to HK$300,000), Biz Expands Easy (BEE) Loan (up to HK$2 million).
  • What it offers: Quick, small-scale funding for founders who cannot access traditional bank loans.
  • Best for: Young entrepreneurs (18–35) or SMEs testing early-stage ideas.

Some schemes target first-time founders so that applications can be faster and approval rates can be higher.

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SME Growth Stage: Small businesses just starting can explore microfinance and angel investors. Growing SMEs with proven revenue can access bank loans and venture capital.

Corporate-Backed Programmes

  • What it is: Industry-specific support from established corporates.
  • Examples: Fintech-focused funds from HSBC, logistics/AI programmes via DHL or Maersk, AI/robotics support via Google or Microsoft partnerships.
  • Best for: Startups aligning with corporate strategic goals, especially in fintech, logistics, AI, or sustainability.

Corporations often provide mentorship, pilot projects, and go-to-market support, not just capital.

Strategic Alternative Approaches

  • Co-working equity swaps: Exchange office space or services for minor equity stakes with partners.
  • Supplier financing: Negotiate extended payment terms or upfront funding from key suppliers for production or inventory.
  • University/Research partnerships: Access grants and seed funding if collaborating with HK-based universities for R&D projects.
  • Convertible notes or SAFE (Simple Agreement for Future Equity): Flexible ways to raise early-stage funding without immediate ownership dilution.

SME Financing Guarantee Scheme (SFGS)

*Information on loan offerings is updated as of September 2025 and is subject to change.  

How to Apply for SME Funding in Hong Kong

Applying for SME funding in Hong Kong involves understanding eligibility requirements, preparing proper documentation, selecting the right scheme, submitting your application, and complying with reporting obligations.

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Pro Tip:  Before applying, use SUCCESS (SME Support Centre) free advisory services to strengthen your application and avoid common pitfalls.

1. Check eligibility

Before starting the application, confirm that your business meets the funding programme requirements. Your company must be incorporated in Hong Kong, and your business sector must match the scheme you are applying for

For example, tech startups can tap into Cyberport Incubation for early-stage support, while logistics companies might explore the Pilot Subsidy Scheme for Third-Party Logistics Providers (TPLSP).

Beyond these basics, specific programmes like EMF or BUD Fund may require proof of active operations, minimum business history, or specific documentation like audited financial statements.

2. Prepare documents

Careful preparation of documents is critical, especially for reimbursement-based schemes like EMF and BUD Fund. You should have the following ready:

  • Certificate of Incorporation & Business Registration – proof your company is legally established in Hong Kong.
  • Company Financial Statements – for bank loans, grant applications, or co-funding programmes.
  • Business Proposal or Project Plan – required for programmes like BUD Fund, Cyberport Incubation, or ITF-supported R&D projects.
  • Marketing Proof – for SME Export Marketing Fund (e.g., campaign plans, ads, sales reports).
  • Bank Statements & Tax Records – required for loans and reimbursement-based funding claims.

For industry-specific schemes, additional proof is needed, such as logistics technology operations for TPLSP, transport relevance for the Smart Traffic Fund, or operational history in recycling for the Recycling Fund. All records, including contracts, receipts, and financial statements spanning several years, should be audit-ready. 

To ensure smooth auditing and reimbursement claims, keep both digital and physical copies of all documents, organised by programme and expense type.

4. Submit your application

Processing times vary depending on the type of funding. For government schemes, the SME Export Marketing Fund (EMF) and BUD Fund typically take four to twelve weeks for approval. Bank financing options like the SFGS mentioned are faster, usually requiring two to four weeks. It is important to plan your application timeline carefully to ensure the capital is available when needed.

Applications are generally submitted online via the relevant government or organisation portal. 

Official Portals for Applications

Use official portals to identify schemes and access application forms:

5. Comply with ongoing reporting

Once approved, you must comply with regular reporting and auditing requirements. Most schemes operate on a reimbursement basis, so accurate record-keeping of expenses, invoices, receipts, and milestone achievements is essential. Failure to maintain proper records or meet reporting deadlines can result in penalties or recovery of funds.

✅ Keep accurate financial and R&D records, including receipts, contracts, and audit-ready documentation.

✅ Avoid applying for overlapping funding for the same expense.

✅ Ensure required physical presence in Hong Kong (office, lab, or staff) and keep MPF contribution records for local employees.

✅ Submit progress reports and reimbursement claims on time; missing deadlines can lead to fund clawbacks.

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Common Pitfalls: Claiming ineligible expenses, poor record keeping, insufficient local presence, and incomplete documentation can lead to fund clawbacks and audit failures.

Conclusion

Hong Kong's diverse funding landscape presents opportunities for non-resident entrepreneurs, including startups and SMEs, who are willing to navigate the requirements properly. With several schemes available, from incubation programmes to export marketing funds, the key is matching your business needs with the right funding avenue.

Remember the three pillars of success: Hong Kong incorporation opens the door, thorough documentation keeps it open, and choosing programmes aligned with your sector and growth stage maximises your chances of approval.

Whether you pursue SME funding through government schemes, like the BUD Fund, for market expansion or explore private alternatives through venture capital and angel networks, Hong Kong's ecosystem is designed to support non-residents who demonstrate a genuine commitment to the local market.

How Statrys Can Help

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FAQs

What is SME funding, and who qualifies?

SME funding refers to government grants for Small and Medium Enterprises - businesses with fewer than 100 employees (manufacturing) or 50 employees (non-manufacturing) in Hong Kong. Any startup, entrepreneur, or qualifying business can access these schemes to scale operations or develop products without traditional loan burdens.

Can non-residents apply for SME funding in Hong Kong? 

Do I need a Hong Kong ID to access government funding? 

Can I apply for multiple funding schemes at the same time? 

Which sectors receive the most funding support? 

What tax benefits do SMEs get in Hong Kong? 

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