HKSTP’s Incubation Programme is a three-year programme for early-stage technology start-ups in Hong Kong.
HKSTP’s Incubation Program is well known among the Hong Kong startup community as one of the city’s most successful incubation programs for helping startups develop their ideas and establish themselves in the market. The program takes place over a three year period and offers reimbursement-based financial subsidies of up to HK$1.29 million, distributed over a series of agreed upon milestones incubatees must meet. As of 2026, HKSTP will also require incubatees to sign a Simple Agreement for Future Equity (SAFE) in their second year as a condition for receiving a large part of the subsidies.
This article will briefly go over the application process, the revamped incubation stages and how the financial subsidies will be distributed.
Eligibility Criteria
Applicants must be a technology company incorporated in Hong Kong of no more than five years old at the time of application, where technology is defined as related to electronics, information and communications technology, material and precision engineering, and green technology.
While applicants are an incubatee at HKSTP’s Incubation Program, they cannot concurrently be part of another incubation program, such as HKSTP’s Ideation program, and incubation programs offered by Cyberport and the Hong Kong-Shenzhen Innovation and Technology Park.
| Eligibility Criteria |
|---|
| Founders collectively and directly hold at least 51% of issued shares throughout the programme |
| At least two full-time staff at application, each able to work legally in Hong Kong |
| Full, accurate, and up-to-date shareholder disclosure is required |
Table 1 – Eligibility Criteria
The Application Process
The application starts when a director or shareholder of the company submits a signed application form and the required supporting documents. After submission, HKSTP may request additional information or supporting documents while it processes your application. If their requests are not met for more than two months, the application will be assumed to be withdrawn.
| Commonly Requested Support Documents |
| Business Plan |
| Business Registration |
| Articles of Association |
| Organisation Chart and Corporate Structure |
| CVs of all current staff |
| Academic certificates for founders and core management |
The Assessment and Approval Process
Eligible applications will be invited to a preliminary online interview to give an introductory presentation to HKSTP personnel. This interview is more to verify you and your company, and to provide applicants with feedback on their presentation for later. Applicants that pass this round will be invited to present to the assessment panel, where they will be scrutinised and questioned by a small group of entrepreneurs and various specialists. Applicants will be expected to be prepared to answer questions related to the scope, budget, milestones, and other elements of their application, and may be asked to provide further documentation.
Successful applicants will be onboarded as incubatees, and offered designated desk space at HKSTP’s coworking space including related amenities. Incubatees will also have access to HKSTP’s business-development support services and conditional financial support.
| Assessment Area | Criteria |
|---|---|
| Management team | The quality and competency of the management team |
| Business plan | The soundness of the three-year business plan and beyond |
| Innovativeness | The uniqueness of the proposal, especially if similar companies already exist |
| R&D content | What research and development has already started |
| Shareholder disclosure | Full disclosure of all shareholders and holding companies |
Table 2 – Assessment Criteria
HKSTP’s Revamped Funding Support
In 2026, HKSTP shifted to a new funding support structure, where all incubatees with a second milestone assessment due on or after 1 April 2026 will go on the Revamped track. The revamped track splits the three year program into two stages; the first called the “IncuHatch” stage, where funding and ancillary support will continue to be provided to incubatees as before to develop their product and business plans, and the second stage called “IncuBoost”, where eligible companies will receive the rest of the funding in exchange for equity provided to HKSTP.
| Funding Type | Maximum Amount | Intended for |
|---|---|---|
| Financial subsidy | HK$840,000 | R&D and business-development activities |
| Rental subsidy | HK$450,000 | For renting workspace within HKSTP’s jurisdiction |
| Total | Up to HK$1,290,000 |
Table 3 – Funding Support
The IncuHatch Stage
As the name implies, the first 12 months of the incubatee’s journey is primarily to develop their minimum viable product (MVP) and plans to either raise funds or go to market, which will be implemented in the IncuBoost Stage. Financial subsidies of up to HK$140,000 will be provided after incubatees pass the first milestone assessment.
The second milestone assessment, also called the Demo Day Assessment, happens between the 10th and 12th month, when incubatees have to present their MVP and plans to a panel. Whether they pass this assessment will determine if they can proceed to the IncuBoost Stage of the program. Incubatees that pass will also be required to sign a SAFE agreement that will allow HKSTP or a designated subsidiary to gain a future equity position in the incubatee company.
The IncuBoost Stage
The IncuBoost Stage of the Incubation Program lasts for the last two years of the program, and is where incubatees will begin implementing their fund raising strategy or business plan developed in the IncuHatch Stage.
Incubatees will receive HK$140,000 of the subsidy after passing their Demo Day assessment and signing the SAFE agreement, then the following tranche of HK$280,000 after passing their milestone assessments in year 2, with another tranche of HK$280,000 in the third year.
This stage is also where incubatees will be required to attend training and workshop sessions as part of the program.
If incubatees fail to meet their agreed on milestones, an explanation will be expected. If the explanation is accepted, HKSTP will help incubatees set up a performance improvement plan for up to six months with a new revised set of milestones. If those milestones are still not achieved, funding will be withdrawn and incubatees will need to vacate the premises.
| Milestone No. | Distribution period | Financial subsidy | Rental subsidy allocation |
| 1 | Months 1–9 | HK$140,000 | HK$150,000 |
| 2 | Months 10–12 | HK$140,000 | — |
| 3-4 | Months 13-24 | HK$280,000 (HK$140,000 per milestone) | HK$150,000 |
| 5-6 | Months 24-36 | HK$280,000 (HK$140,000 per milestone) | HK$150,000 |
| Total | HK$840,000 | HK$450,000 |
For more information, check out the full guide to the Incubation Program.
Accounting and Auditing Responsibilities
In order to keep its incubatees accountable for using its funds responsibly, HKSTP expects founders to properly maintain their books to be audited at the end of each financial year. Audited financial statements must be submitted to HKSTP within 90 days of the financial year end.
If a founder does not nominate a CPA firm to act as their auditor, HKSTP will assign one for them and deduct the associated costs from the program’s funding support.
If you’re searching for a CPA firm to either clean up or audit your books, drop us a message and we’d be happy to help!
