Hong Kong Startup Funding Programmes: Top 5 Government Schemes for Startups
- Anna Lau
- Jun 11, 2021
- 3 min read
Updated: 3 days ago
Author: Anna Lau, Litigation Partner
“Chase the vision, not the money, the money will end up following you” - Tony Hsieh, co-founder of Zappos
There can be no doubt that the Government of Hong Kong has invested significantly in its ambition to become Asia’s premier incubation capital for start‑ups. From dedicating land for incubation centres such as Science Park and Cyberport, to allocating funding to support entrepreneurial ventures, the process of launching a business has never been more accessible.
This remains true even during the pandemic years. Below are the top 5 government funding options that entrepreneurs and new business owners can explore as part of the Hong Kong startup funding programmes landscape.
Major Funding for Start‑Ups in Hong Kong
1. The Microfinance Scheme
The Microfinance Scheme is a collaboration organised by The Hong Kong Mortgage Corporation Limited, involving major banks and non‑government organisations to provide training and financing to new entrepreneurs.
The scheme offers:
Micro Business Start‑up Loan
Self‑employment Loan
Self‑enhancement Loan
Successful applicants may receive up to HK$300,000, with a maximum loan tenor of five years and a 12‑month repayment holiday.
Eligibility: Applicants must be incorporated in Hong Kong, not be a listed company, and have significant business activity in Hong Kong.
2. The SME Loan Guarantee Scheme
The SME Financing Guarantee Scheme assists small and medium enterprises experiencing reduced cash flow by providing government‑backed loan guarantees.
Eligibility: Applicants must be an SME, operate primarily in Hong Kong, not be associated with a participating lender, and not operate a lending business.
3. The Social Innovation and Entrepreneurship Development Fund
The Social Innovation and Entrepreneurship Development Fund (SIEDF) support enterprises addressing poverty and social exclusion through innovative solutions.
The fund connects applicants with mentors and provides access to resources.
Eligibility: Applicants must focus on poverty alleviation and have a product or launchable solution within six months.
4. The Patent Application Grant
The Patent Application Grant (PAG) supports entrepreneurs in protecting their intellectual property, a core asset of any start‑up.
The PAG is a collaboration between the Innovation and Technology Commission and the Hong Kong Productivity Council (HKPC), covering applications for functional patents and technological inventions.
Eligibility: Applicants must be locally incorporated companies or Hong Kong residents with right of abode who have never owned a patent. Corporate applicants must be related to the inventor.
5. The SME Export Marketing Fund
The SME Export Marketing Fund (EMF) supports overseas expansion by funding export‑related marketing activities.
Funding covers:
Digital marketing
E‑commerce development
Mobile applications
Trade fairs and exhibitions
Successful applicants may receive up to HK$800,000, with no cap on the number of applications.
Eligibility: Applicants must be SMEs with substantive business in Hong Kong and not provide marketing services to EMF recipients.
Conclusion
Whilst resources for start‑ups in Hong Kong are abundant, entrepreneurs should remember:
Documentation: Have company records ready
Business Plan: Develop a clear and competitive plan
Legal Advice: Understand restrictions and compliance obligations
Prevention is always preferable to remediation. Do not be penny‑wise and pound‑foolish.
How Ravenscroft & Schmierer Can Help?
Navigating Hong Kong startup funding programmes requires careful attention to eligibility criteria, compliance obligations, and grant conditions. Ravenscroft & Schmierer advises entrepreneurs and start‑ups on funding applications, corporate structuring, intellectual property protection, and regulatory compliance.
If you are considering applying for government funding or launching a new venture, contact us to discuss your circumstances and available options.
FAQ: Hong Kong Startup Funding Programmes
What are Hong Kong startup funding programmes?
They are government‑backed schemes offering loans, grants, and financial support to eligible start‑ups and SMEs.
Are these programmes limited to technology start‑ups?
No. Some programmes support social enterprises, exporters, and businesses across various industries.
Can a start‑up apply for more than one funding scheme?
Yes, provided eligibility requirements are met, and scheme rules allow multiple applications.
Is legal advice necessary when applying for funding?
While not mandatory, legal advice helps ensure compliance with scheme conditions and long‑term obligations.
How can Ravenscroft & Schmierer assist start‑ups with funding applications?
Ravenscroft & Schmierer advises on eligibility assessment, documentation preparation, and compliance for funding applications.
Does Ravenscroft & Schmierer advise on intellectual property grants?
Yes. We advise on Patent Application Grant eligibility and IP structuring for start‑ups.
Can Ravenscroft & Schmierer assist with post‑funding compliance?
Yes. We advise on ongoing legal and regulatory obligations after funding is secured.
This article is co-authored by Joshua Chu from ONC Lawyers
Disclaimer: Whilst every effort has been made to ensure the accuracy of this article it is general in nature and does not constitute legal advice of any kind. You should seek your own personal legal advice before taking legal action. We accept no liability whatsoever for loss arising out of the use or misuse of this article.
For specific advice about your situation, please contact:
Litigation Partner
+852 2388 3899
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