【EMF Guide】High international promotion costs? Apply for the SME Export Marketing Fund to save big!

Looking to expand your business overseas but worried about high promotion costs? The Hong Kong government has a dedicated funding scheme for SMEs—the "SME Export Marketing Fund" (EMF). Eligible businesses can receive up to HK$1 million in grants, effectively offsetting overseas promotion expenses, saving money while reducing risk. This guide will walk you through the EMF application requirements, process, and success tips, helping you fully understand and seize this valuable entrepreneurial opportunity.

What is the EMF (SME Export Marketing Fund)?

The "SME Export Marketing Fund" (EMF) is a government funding scheme established by the Hong Kong Trade and Industry Department, specifically for local SMEs. Its purpose is to assist businesses in exploring overseas markets. Many SMEs want to conduct overseas promotions, such as participating in exhibitions, running advertisements, setting up online stores, or organizing international promotional activities, but the promotion costs are often high. EMF aims to help businesses alleviate cost burdens and enhance competitiveness by providing subsidies, enabling more SMEs to go global.

Main Funding Arrangements:

• • Maximum Grant Amount: Each enterprise can cumulatively receive up to HK$1 million in grants.
• • Per Application Limit: Each application is capped at HK$100,000 in funding.
• • Funding Ratio: The government covers 25%, and the enterprise pays 75%.
• • Funding Method: Primarily on a "reimbursement basis," meaning the enterprise pays upfront and then submits receipts for reimbursement within 60 days of project completion. If needed, a 20% advance payment can also be requested before the activity begins.

In short, EMF is a fund specifically designed to "share overseas promotion costs" with SMEs, allowing them to test the waters and market with lower costs, reducing investment risk while laying a solid foundation for future expansion into international markets.

SME Export Marketing Fund (EMF) Application Conditions and Scope of Funding

SME Export Marketing Fund (EMF) Application Conditions

To successfully apply for EMF, SMEs must meet the following conditions:

• • Hong Kong Registered Non-Listed Enterprise: Must be registered in Hong Kong under the Business Registration Ordinance (Cap. 310) and not be a listed company. This applies to limited companies, unlimited companies, or partnerships.
• • Substantial Business Operations in Hong Kong: Must provide supporting documents, such as bank transaction records, lease agreements, supplier or customer contracts, to ensure it is not a "shell company" or an enterprise whose main business is outside Hong Kong.
• • Funding Cap: Each enterprise can cumulatively receive up to HK$1 million in grants. If related enterprises are involved, the grant amount will be combined.
• • Nature of Applicant Enterprise: The applicant must be a profit-making SME. Listed companies, government departments, and public organizations are not eligible.
• • Not an Organizer or Co-Organizer: Enterprises cannot apply for promotion activities they themselves organize, co-organize, or provide services for.
• • Application Deadline: Applications and all required supporting documents must be submitted within the stipulated timeframe after the activity or project is completed.

SME Export Marketing Fund (EMF) Funding Scope

• • Participation in exhibitions, exchange events, study tours targeting overseas markets
• • Online promotional activities targeting overseas markets (e.g., Facebook, Google, Instagram ads targeting overseas audiences)
• • Establishing or optimizing the company's overseas website/mobile application
• • Producing and printing promotional materials for overseas markets (e.g., product catalogs, leaflets, trade publication advertisements, etc.)

EMF Application Process Step-by-Step Guide

Want to apply for the "SME Export Marketing Fund" (EMF)? The entire process isn't too complicated and can be generally divided into the following steps:

First Step: Online Application (Approx. 2–3 days)

‍Submit the application form via the Trade and Industry Department's designated website or e-form system, clearly stating the type of promotional activity, target market, and estimated expenses. Also, upload documents such as the company's business registration certificate, director or shareholder identity proof, and business operation proof (e.g., lease agreement, bank transaction records).

Second Step: Approval (Approx. 30 days)‍

The Trade and Industry Department will review the application eligibility and document completeness, and provide a progress inquiry function on its official website. If information is insufficient, additional documents may be requested.

Third Step: Document Submission (Approx. half a month) If additional documents are requested, the enterprise must provide supplementary documents or clarifications within the specified deadline, otherwise the application may be considered void.

Fourth Step: Activity Execution and Reimbursement (Must be reported within 60 days of completion) Upon approval, the enterprise can proceed with the promotional activity as planned. After completion, a results report and eligible receipts must be submitted within 60 days to prove that the expenditure was indeed used for the relevant promotional project.

Fifth Step: Review and Disbursement (Approx. 1–2 months) After the Trade and Industry Department verifies the information, the grant funds will be directly deposited into the company's designated bank account. If an advance payment was requested, part of the grant may be received earlier.

The entire process generally takes about 4–6 months, with the actual time depending on the completeness of documents and the completion of activities.

3 Practical Tips to Boost EMF Application Success Rate

When applying for the "SME Export Marketing Fund" (EMF), mastering these three tips can significantly increase your success rate and enhance your chances of securing the maximum HK$1 million grant.

1. Adhere to the 60-day application deadline

The fund requires applications to be submitted within 60 days after the completion of the promotional activity or project. Businesses should plan their timeline in advance, organize all necessary documents and proofs, to avoid rejection due to missing the deadline.

2. Respond to inquiries and provide supplementary documents promptly

During the review process, the Trade and Industry Department often requests businesses to provide additional information or respond to inquiries. Businesses must closely monitor email notifications and respond within the deadline, otherwise the application may be delayed or even withdrawn.

3. Clearly demonstrate overseas promotion

Businesses need to provide strong evidence that the funds were indeed used for overseas promotion, such as overseas versions of advertising materials, promotional materials targeting overseas audiences, or relevant proof of local business operations, to ensure compliance and increase the approval rate.

How to check the progress of your SME Export Marketing Fund application?

After applying for EMF, it's advisable to regularly track the progress to avoid missing deadlines for submitting additional documents or responding to inquiries. You can check the latest status of your SME Export Marketing Fund application by entering your application number on the official website of the Trade and Industry Department or through their dedicated inquiry hotline, ensuring timely follow-up on the approval process.

Is the SME Export Marketing Fund tax-exempt?

The SME Export Marketing Fund (EMF) is a funding scheme launched by the Hong Kong government to assist SMEs in expanding into overseas markets. Many businesses are concerned whether the SME Export Marketing Fund grant is tax-exempt.

According to the Hong Kong Inland Revenue Department and accounting practices, EMF grants are generally tax-exempt. Since most are capital subsidies, they are not directly included in assessable profits and therefore usually do not require the payment of profits tax on the grant amount.

At the same time, promotional expenses are still tax-deductible. Even if some costs have been offset by the grant, the relevant eligible expenditures can still be claimed as normal operating expenses, further reducing the tax burden. However, it is recommended that businesses properly keep all documents, including application forms, approval notices, reimbursement forms, and receipts, for future verification, to avoid affecting tax treatment due to insufficient records. In summary, EMF grants can generally be considered tax-exempt, but each company's situation is different. Businesses should consult a professional accountant to ensure compliance with accounting and tax reporting and to make the best use of policies to maximize tax benefits.

SME Export Marketing Fund Application

How long does EMF approval take?

Under normal circumstances, the Trade and Industry Department will complete the initial review within approximately 30 working days after receiving a complete application form and all required documents. If additional information is needed, the time will be extended accordingly. The entire process from application to approval and disbursement generally takes about 4–6 months.

What is the maximum amount an SME Export Marketing Fund can apply for?

Each enterprise can cumulatively receive up to HK$1 million in grants, and each application is capped at HK$100,000. The government will subsidize 25% of eligible expenses, with the remaining 75% to be covered by the enterprise itself.

How many times can a company apply for EMF?

There is no limit to the number of applications, as long as the cumulative HK$1 million grant ceiling has not been exceeded. However, applications for the same promotional activity should not be resubmitted within a short period to avoid duplicate funding. It is recommended that businesses carefully plan different activities and application timelines to fully utilize the funding.

Can I apply for EMF without a physical office?

Yes. Applicant enterprises need to demonstrate substantial business operations in Hong Kong, for example, by providing bank transaction records, lease agreements, supplier or client contracts, etc. Even without a physical office, if other valid business proofs can be provided, there is still a chance of successful application. However, the review process for such cases will be stricter and will depend on individual circumstances.

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