Youth Business Hong Kong (YBHK)

Background

Incubation, Entrepreneurship and Innovation

The Hong Kong Federation of Youth Groups (“HKFYG“) encourages young people to explore opportunities beyond traditional employment and promotes the concept of “Another Choice· Another Opportunity”. Since 2002, HKFYG has provided entrepreneurial education and training for young people. Established in 2005, Youth Business Hong Kong (“YBHK“) offers local young entrepreneurs one-stop support, including financial assistance and a range of services, to help them realise their entrepreneurial aspirations.

HKFYG is committed to promoting innovation and technological development. With effect from 2 October 2025, YBHK introduced a new category for entrepreneurial projects incorporating artificial intelligence (“AI“), with successful applicants eligible for an interest-free loan of up to HK$200,000. The maximum loan for other entrepreneurial projects was also increased from HK$150,000 to HK$180,000.

Loans will be granted to a Hong Kong limited company owned by the successful applicant(s). Each loan must be secured by a Floating Charge over the borrowing company’s assets and supported by Personal Guarantee(s) (subject to any additional credit enhancements as required by HKFYG) granted by the Personal Guarantor(s). The borrowing company must repay the loan in 24 monthly instalments.

Four Core Services

1. Seed Funding

Successful applicants may receive an interest-free loan of up to HK$180,000 for general entrepreneurial projects.
Successful applicants may receive an interest-free loan of up to HK$200,000 for projects incorporating AI.
The review panel will determine the loan amount based on each project proposal and its specific needs. The approved amount may vary between projects.
The loan will be granted to a Hong Kong limited company owned by the applicant(s).

2. Business Mentorship and Professional Consultancy

YBHK’s business mentors include entrepreneurs, senior executives from business and industry, consultants and other professionals. They volunteer their time, expertise and experience to advise young entrepreneurs on business operations. Professional consultations are also available through trade and industry associations and business service organisations.

3. Business Support

YBHK provides or helps young entrepreneurs access the facilities, resources and support needed to operate their businesses. It also assists them in building business networks.

4. Information and Networks

YBHK provides information on business operations, including industry, trade, finance and legal matters, and connects young entrepreneurs with local business networks.

Requirements

Applicants must:

Be Hong Kong permanent residents aged 18 to 35.
Have either a viable business idea that can be launched within one year, or a business that has been operating for no more than three years. Applicants with an existing business must submit a complete business plan and an operational report, and must own the business.
Demonstrate a commitment to establishing and operating their own business, but lack access to seed funding.
Operate, or plan to operate, the business through a Hong Kong limited company (the “Borrower”), with its principal business activities conducted in Hong Kong.
If the applicant intends to operate, or is already operating, the business as a sole proprietorship or partnership, they may still apply. However, if the application is successful, they must incorporate a Hong Kong limited company before signing the loan agreement and transfer the business to that company.
Ensure that all shareholders of the Borrower apply jointly and meet the eligibility requirements above.
Arrange for the Borrower to grant a Floating Charge over its assets in favour of HKFYG and for the loan to be guaranteed by Personal Guarantor(s). Please refer to “Loan Documentation and Security” below.
Note that franchise store projects are not eligible for consideration as entrepreneurial projects.

Requirements

Hong Kong resident aged between 18 and 35.
Have either a viable business idea that can start within one year, OR already running a business under own name for not more than three years – business plan and report required.
Demonstrate a commitment to start and run their own business, but have no access to seed money.
Have registered or will register own business in Hong Kong and have own business activities undertaken in Hong Kong.
If the intended business OR existing business is owned by the Applicant in the form of a sole proprietorship, he/she must fulfil the requirements of the above items.
If the intended business OR existing business is owned by the Applicant(s) in the form of a partnership, all the partners of the business must complete the application form and fulfil the requirements of the above items.
If the intended business OR existing business is owned by the Applicant(s) in the form of a limited company, all the shareholders of the limited company must complete the application form and fulfil the requirements of the above items.
Franchise store projects will not be included in the scope of consideration for entrepreneurship.

Assessment Criteria

Personal Qualities and Resources (40%)

Integrity, commitment, entrepreneurial drive and perseverance.
Skills, qualifications, knowledge and experience relevant to operating the business.
Teamwork and division of responsibilities, where applicable.
Personal financial resources and support networks.

Business Plan (40%)

Innovation, concept and quality of the product or service; target customers and value proposition.
Business model, financial projections and potential for sustainability.
Market positioning, competitive analysis and competitive advantages.
Key business risks and contingency plans.
(For AI-related projects: innovation and value of the AI application, technical feasibility, competitive advantages and risk management.)

Need for and Benefit of YBHK Support (20%)

Need for seed funding.
Readiness to receive business mentorship and support.
Expected benefits of YBHK’s support to the applicant(s) and business development.

Application and Vetting Procedures

All applicants must submit the following:

Online application form: Apply here.
Business plan: Download the template.
Copy of Hong Kong Identity Card.
Proof of residential address dated within three months of the application.
Copies of academic qualifications and employment records.
Credit report issued by TransUnion Limited within three months of the application deadline.
Personal Financial Summary: Complete the form.
Proof of personal income, such as bank statements, tax returns, payslips, a signed tenancy agreement or an employment letter.
Applicants with regular income must submit proof for the latest month.
Applicants with irregular income, including income from part-time work, commission or profit-sharing, must submit proof for the latest three months.
Borrower’s company documents, if the company has already been incorporated. If not, these must be submitted before the Loan Agreement is signed:
- Certificate of Incorporation and (if any) Certificate(s) of Change of Name
- Valid Business Registration Certificate
- Articles of Association
- Latest Annual Return (Form NAR1) or Incorporation Form (Form NNC1), any subsequent filings with the Companies Registry and (to the extent not reflected in such filings) the register of directors and register of members showing the current directors and shareholders
- The index of charges obtained from the Companies Registry or (to the extent not reflected in such index) the register of charges showing the current security granted by the Borrower

YBHK will assess the viability of the business plan, the applicant(s)’ determination and competence to start the business, and their credit records. Suitable applicants will be invited to attend an interview with the Vetting Panel. All applicants must attend the interview for the application to be considered.

Loan Terms and Repayment

Each successful entrepreneurial project may receive an interest-free loan of up to HK$180,000. Projects incorporating AI may receive an interest-free loan of up to HK$200,000.
HKFYG will grant the loan to the Borrower, a Hong Kong limited company owned by the successful applicant(s). The Borrower and the Personal Guarantor(s) must sign the Loan Agreement.
The review panel will determine the loan amount based on the applicant(s)’ business needs.
The loan must be repaid in 24 monthly instalments, starting from the seventh month after the loan is disbursed.
The Borrower must use the loan in accordance with the approved terms and purposes and provide evidence of how the funds have been used.
The Borrower must make each repayment on or before its due date. Late repayments will incur additional administrative fees.
Each loan must be supported by Personal Guarantee(s) granted by the Personal Guarantor(s). If the Borrower fails to repay on time, the Personal Guarantor(s) will be responsible for repaying all outstanding amounts. The Personal Guarantor(s) must sign a Warning Notice before the Loan Agreement is signed.
Each loan must be secured by a Floating Charge granted by the Borrower over its assets in favour of HKFYG. The Borrower must register the Floating Charge with the Companies Registry within one month of its date. Registered charges will appear on the Companies Registry’s public register. The Borrower must also provide a copy of the certificate of registration of charge to HKFYG as soon as it is available. After the loan has been fully repaid, HKFYG will sign a Deed of Release and arrange for a certified copy of the Deed of Release to be provided to the Borrower, after which the Borrower may file a notice to release the charge with the Companies Registry.
As a condition precedent to the loan, the Borrower’s board of directors must pass resolutions, in the agreed form provided by YBHK, approving the Loan Agreement and the Floating Charge (and other credit enhancements, if applicable).
The Borrower must submit business and financial reports to YBHK every three months so that the Secretariat and business mentor can monitor progress and provide support. Applicants must accept mentorship and maintain close communication with the Secretariat and their mentors.
The Borrower must notify the YBHK Secretariat at least two weeks before any changes take effect in the Borrower or its business, including changes to its business structure, directors, shareholders or shareholding proportions.
If the Borrower fails to follow the business plan or the approved loan terms and purposes; refuses to submit reports or submits inaccurate reports; or engages in illegal or unreasonable business activities, YBHK and/or HKFYG reserves the right to suspend or terminate the loan or support services, or vary their terms.
YBHK and/or HKFYG reserves all legal rights to recover outstanding amounts from the Borrower and the Personal Guarantor(s), including by enforcing the Floating Charge, the Personal Guarantee(s) and any other credit enhancement as required by HKFYG.

Loan Documentation and Security

Successful applicants must sign the following documents (subject to any additional credit enhancements as required by HKFYG). YBHK will provide the templates:
Warning Notice(s) to Personal Guarantor(s): To be signed by the Personal Guarantor(s) before the Loan Agreement.

Borrower’s Board Resolutions: To be passed in the agreed form provided by YBHK, approving the borrowing and the Floating Charge (and other credit enhancements, if applicable). These resolutions are a condition precedent to the loan.

Loan Agreement: To be signed by the Borrower, the Personal Guarantor(s) and HKFYG, setting out the loan amount and repayment schedule of 24 monthly instalments.

Floating Charge and Deed of Release: The Borrower must grant a Floating Charge over its assets in favour of HKFYG as security for the loan. The Borrower must register the charge with the Companies Registry within one month of its date. The registration fee of HK$340 is payable by the Borrower. Once all outstanding amounts have been repaid, HKFYG will sign a Deed of Release and arrange for a certified copy of the Deed of Release to be provided to the Borrower. The Borrower may then file a notice to release the charge with the Companies Registry, at a fee of HK$190 payable by the Borrower.

Application and Deadlines

Applications are open. Please submit the online application form.
YBHK accepts applications four times a year, with deadlines on 1 January, 1 April, 1 July and 1 October. If a deadline falls on a Saturday, Sunday, public holiday, or on a day when YBHK’s office is closed due to a typhoon, extreme weather or other circumstances, the deadline will be extended to 5:00 p.m. on the next day on which YBHK’s office is open.
Submit the business plan and supporting documents by email to [email protected] by 5:00 p.m. on the relevant deadline. Use the subject line: “Application for Youth Business Hong Kong_[Company Name]”.
Submitted documents will not be returned. Applicants should keep copies for their records.