Founded in 1956 through the amalgamation of five colleges: Canton Overseas, Kwang Hsia, Wah Kiu, Wen Hua, and Ping Jing College of Accountancy, United College commenced operation in October of the same year. In its early days, the College's revenue came mainly from tuition fees and financial support from educational organizations. The College's Proposed Budget for the First Academic Year shows that it expected to receive an income of about HK$400,000 from funding from Mencius Educational Foundation and tuition fees. After paying salaries for teachers and staff as well as the rent for its premises, etc., there would be an estimated surplus of HK$250 per month.

However, the College's actual income fell short of its expectations in its fledgling years. The College ran a monthly deficit of some 10,000 dollars despite its austerity measures. Its finances were improved only after the Hong Kong Government announced the provision of subventions to United College, Chung Chi College, and New Asia College in 1959, a year after the proposal for establishing the Chinese University was accepted.

The Proposed Budget for the First Academic Year of United College is now on display in the University Gallery, courtesy of the College.