Case examples and common regulated industries
Some businesses (such as regulated industries or those involving product sales or dealership) may require relevant documentary proof (such as product safety inspection certificate, sales representation agreement, statutory licence, etc.) from the target market in order to operate legally. If relevant licence / qualification / certification is not obtained before submitting application, the project may be considered infeasible and rejected. In addition, projects will not be funded without documentary proof of relevant licence / qualification / certification.
Specific examples:
- A company has already been selling products on e-commerce platforms in the Mainland, and plans to apply for the BUD Fund for this business. It lacks the relevant licences to demonstrate viability of its online sales, so although the company is already operating the relevant buisness in the target market, they could only be funded after obtaining the licences.
- A company plans to export products to a target market. The products need to pass the testing and certification to ensure compliance with the safety standards of the target market before they can be manufactured and sold locally.
- A company’s business involves brand or product dealership and sales. It needs to provide relevant licence(s) and dealership contract(s) in its application to prove the project’s feasibility.
- There are also some scenarios in which applicants do not need relevant licence/qualification/certification as a prerequisite in implementing a project. For example, a company plans to set up a new factory in a target market, and it is confirmed that no documentary proof is required enter the market; the company can simply place their business registration and licence (such as certifications for regulation of food or pharmaceutical products) into their application.
The above examples are non-exhaustive. The latest licence/qualification/certification requirements are subject to the laws of the target market. In case of doubt, please contact the relevant government authorities of the target market.
* Common regulated industries include:food, medical, e-commerce, professional services (such as auditing, consulting, financial services, etc.), toys, maternal and infant products, education, publishing, etc.
