- Most AI consultancies in Hong Kong set up as a private company limited by shares.
- General AI consulting needs no SFC licence; advising on securities or assets does.
- Client personal data in AI tools falls under the PDPO and the PCPD's AI guidance.
- Government fees to incorporate online start at HK$3,895, including business registration.
If you want to set up an AI consulting firm in Hong Kong, the company paperwork is the quick part. What slows you down is the client asking whether you need a licence and where its data goes.
Most founders incorporate their AI consultancy as a private company limited by shares. General AI consulting isn’t regulated by the Securities and Futures Commission (SFC), but advising on securities, managing assets or credit ratings is. Personal data brings in the Personal Data (Privacy) Ordinance (PDPO).
In this guide, you’ll learn:
- Which structure suits an AI consultancy
- When AI work needs an SFC licence
- What the PCPD’s AI guidance means for client data
- What your client contracts should cover
- What it costs to start, and how your profits are taxed
How do you set up an AI consulting firm in Hong Kong?
In five steps: choose your structure, check the licence rules, incorporate, open a bank account and set up your compliance basics.
- Choose a structure: a sole proprietorship or a private limited company (see below).
- Check the licence rules: most AI work needs no licence, but some financial work does.
- Incorporate and register: file with the Companies Registry and get a business registration certificate. Online filings are normally done within one hour, according to the Companies Registry. Founders based abroad can incorporate from overseas.
- Open a bank account: banks ask about your business model, clients and directors when you open a business bank account.
- Set up compliance basics: a data-privacy policy, client contract templates, bookkeeping and annual filings.
Which company structure should an AI consultancy use?
A private company limited by shares usually suits an AI consultancy better. The company signs client contracts and carries the business’s liabilities, and larger clients often prefer to contract with a company. A sole proprietorship is cheaper and quicker to start, but you’re personally liable for everything the business owes.
| Sole proprietorship | Private limited company | |
|---|---|---|
| To start | Business registration only | Incorporation with the Companies Registry, plus business registration |
| Your liability | Unlimited: your personal assets cover the business’s debts and claims | Generally limited to what you put into the company |
| Yearly duties | Business registration renewal and a tax return | Annual return, audited accounts, profits tax return and a company secretary |
| Profits tax | 7.5% on the first HK$2 million, 15% above | 8.25% on the first HK$2 million, 16.5% above |
| With clients | Fine for small or one-off work | Often expected by larger clients and in procurement |
Liability is the main reason to decide early. If a client disputes the results of your AI work, a sole proprietor’s personal savings are exposed; a company’s liability generally stays with the company. Compare the two in more detail in sole proprietorship vs limited company before you sign your first client.
Who does a Hong Kong limited company need?
- A director: at least one director must be a natural person. They don’t have to live in Hong Kong.
- A company secretary: an individual who ordinarily resides in Hong Kong, or a company with a registered office or place of business here. If you’re the only director, you can’t also be the company secretary.
- A registered office: a physical address in Hong Kong where official letters are sent.
Do you need a licence to offer AI consulting in Hong Kong?
Not for general AI consulting. A licence comes into play only when your work becomes a regulated activity, mostly financial advice or fund management for clients. The Securities and Futures Commission (SFC) lists 13 types of regulated activity. Anyone carrying on a business in one of them in Hong Kong, or actively marketing it to the Hong Kong public, generally needs an SFC licence. AI strategy, automation, data and model implementation work isn’t on that list.
| If your AI work involves… | Licence needed? | What applies |
|---|---|---|
| AI strategy, automation, data or LLM implementation | No | Business registration, plus company registration if you incorporate |
| Advising clients on securities, such as stock-picking models | Yes | SFC Type 4 licence (advising on securities) |
| Managing client portfolios, including with AI models | Yes | SFC Type 9 licence (asset management) |
| Credit ratings for the public or for subscribers | Yes | SFC Type 10 licence (credit rating services). Ratings for internal use only generally aren’t covered |
| Advising customers on insurance products | Yes | Insurance Authority licence |
| Processing personal data in AI tools | No | The Personal Data (Privacy) Ordinance applies; the Privacy Commissioner’s Artificial Intelligence: Model Personal Data Protection Framework sets out good practice |
| Building tools for banks, insurers or other regulated firms | Usually no | Expect the client’s vendor due diligence, and contract terms that pass on their regulator’s requirements |
Based on the SFC’s licensing guidance, checked on 22 October 2026. Other regulated activities can also apply, such as dealing in securities for clients (Type 1) or advising on futures contracts (Type 5).
Near the line? This table is a guide, not legal advice. If your work could count as advice, dealing or managing money for clients, check with the SFC or a lawyer before you take it on.
Whatever your work and structure, you’ll need a business registration certificate from the Inland Revenue Department (IRD).
The SFC looks at what you do, not what you call it. A stock-picking model sold as "AI consulting" is still advice on securities if clients act on it.
What do the PDPO and the PCPD’s AI guidance mean for your firm?
Your legal duties come from the Personal Data (Privacy) Ordinance (PDPO). It applies whenever you collect, hold, process or use personal data, including when that data goes into an AI tool. The Office of the Privacy Commissioner for Personal Data (PCPD) has published three AI guidance documents. They aren’t new law, but they show what the PCPD expects, and clients may ask whether you follow them.
| PCPD guidance | Published | Use it for |
|---|---|---|
| Artificial Intelligence: Model Personal Data Protection Framework | June 2024 | Governing any AI system you buy, build or use |
| Checklist on Guidelines for the Use of Generative AI by Employees | March 2025 | Writing your team’s internal AI policy |
| Protecting Personal Data Privacy in the Use of Agentic AI | August 2026 | AI agents that act with some autonomy |
Model Personal Data Protection Framework
For organisations that procure, implement or use any type of AI system. It makes recommendations in four areas:
- Strategy and governance: an AI strategy, a governance committee or similar body, and staff training.
- Risk and human oversight: a risk-based approach, with more human oversight where the risk is higher.
- Building and running AI systems: preparing data, testing and validating models, and keeping systems and data secure.
- Communication: being open with staff, AI suppliers, customers and regulators.
Generative AI checklist for employees
A template for your internal policy. It recommends covering:
- Permitted use: which tools staff can use, and for what.
- Personal data: what can be entered, and how outputs are used and stored.
- Lawful and ethical use: checking outputs for accuracy and flagging biased results.
- Data security: approved devices, strong credentials and reporting AI incidents.
- Breaches: what happens if staff don’t follow the policy.
Agentic AI guidance
The PCPD’s most recent guidance covers AI agents that take actions with some autonomy. Its recommendations include using as little personal data as possible, setting retention periods, applying security safeguards and keeping a human in the loop.
What to do in your own firm
- Write a generative AI policy: use the PCPD checklist as your template.
- Put every AI vendor under contract: a vendor that processes personal data for you is your data processor, wherever it’s based. You must use contractual or other means to stop it keeping the data longer than necessary or letting others access it (Data Protection Principles 2(3) and 4(2); see the PCPD’s cloud computing guidance).
- Check vendors’ training terms: make sure client inputs aren’t used to train the vendor’s models without your agreement.
- Review before you deliver: keep a human check on AI outputs before they reach the client.
- Prepare for client questionnaires: larger clients will ask how you handle their data, so have answers ready that refer to the guidance above.
Under the PDPO, personal data is information about a living person that can be used, directly or indirectly, to identify them, in a form you can access or process. Names in a client's CRM export count; anonymised totals usually don't.
What should your client contracts cover?
AI clients tend to ask about data, ownership and liability before they sign. A short checklist of what your contract or statement of work should settle:
- Data handling: what client data you receive, where it’s stored, which tools and vendors process it, and when it’s deleted.
- Ownership of outputs: who owns the code, prompts, workflows and model outputs you produce.
- Training on client data: whether you or your vendors may use client data to train or improve models.
- Accuracy and liability: that AI outputs need human review, and a cap on your liability.
- Confidentiality: how you protect client information and for how long.
This is a checklist, not legal advice. Ask a lawyer to draft your templates once, then reuse them.
How much does it cost to start an AI consulting firm in Hong Kong?
Government fees to set up a limited company online come to HK$3,895: HK$1,545 to the Companies Registry and HK$2,350 for a one-year business registration certificate. After that, government fees run to about HK$2,455 a year. Most of your costs are services and tools, which depend on the provider and how much you use them.
Government fees
| Fee | When | Amount |
|---|---|---|
| Company incorporation, filed online | Once | HK$1,545 |
| Business registration certificate, one year | Every year | HK$2,350, including the levy |
| Annual return | Every year, from the first anniversary | HK$105 if filed on time |
A three-year business registration certificate costs HK$6,170.
Running costs
The government fees are only part of the cost of registering a company. Every limited company also needs a company secretary, a registered office address in Hong Kong and audited accounts each year, so budget for these from the start:
| Cost | When | What sets the price |
|---|---|---|
| Company secretary and registered office address | Every year | The provider |
| Accounting, audit and profits tax filing | Every year | The provider, and how many transactions you have |
| Cloud, model API and software subscriptions | Monthly | The vendor and your usage |
| Professional indemnity and cyber insurance | Every year | An insurer’s quote |
| Legal templates for client contracts and data terms | Once, then updates | A law firm’s quote |
| Employment visas, if you hire from overseas | Per hire | The visa route |
How is an AI consulting firm taxed in Hong Kong?
Your firm pays profits tax only on profits sourced in Hong Kong, at the two-tiered rates set by the Inland Revenue Department (IRD):
| Structure | First HK$2 million of assessable profits | Above HK$2 million |
|---|---|---|
| Limited company | 8.25% | 16.5% |
| Sole proprietorship | 7.5% | 15% |
Where do your profits come from?
For service fees, the place where the work is done matters, not where the client is. The IRD generally treats service income as arising where the services are performed, according to its practice note on the source of profits (DIPN 21).
| Where you do the work | Usually |
|---|---|
| In Hong Kong | Taxable in Hong Kong, even if the client is overseas |
| Entirely outside Hong Kong | Can be treated as offshore and not taxable, if you can prove where the work happened |
| Partly in each | The fee can be apportioned between the two |
- Keep records from day one: timesheets, travel records and project files are your evidence if you claim any profits are offshore.
- Your first return comes late: a new company’s first profits tax return normally arrives about 18 months after incorporation, according to GovHK.
How do you hire, price and win your first clients?
Start small, price for your real costs, and win your first clients with proof of results.
Hiring
- A lean starting team: for example an engineer, a data specialist and someone who sells, with freelancers added per project.
- Overseas talent: anyone who will work for you in Hong Kong needs an employment visa. If your firm does technology R&D, such as building or fine-tuning models, the Technology Talent Admission Scheme (TechTAS) offers a fast track. Since 24 December 2025, that R&D no longer has to fall within 14 named technology areas.
Before your first employee starts:
- Employees’ compensation insurance: take out a policy before they start work, as the Labour Department requires.
- MPF: enrol them in a scheme within the first 60 days of employment, according to the MPFA.
- Tell the IRD: notify it within three months of their start date using form IR56E, if they’re likely to be chargeable to salaries tax.
Pricing
Choose an hourly rate, day rate, project fee, monthly retainer or value-based fee. Whichever you use, build in compute, API and model costs, plus time for discovery and testing. See how much consultants should charge in Hong Kong for the formula.
Winning your first clients
- Lead with proof: short case studies, working demos and referrals tend to win more work than broad marketing.
- Pick one or two sectors: choose sectors where you can show a clear result.
- Grow later: add services such as AI audits or data engineering once your first ones are working.
If you’d rather offer broader advisory work than AI alone, the steps for starting a consulting business apply too.
How can Sleek help you set up your AI consultancy?
Sleek handles the company admin, so you can spend your time on client work. Once the licence and data questions are settled, the company itself shouldn’t slow you down.
With Sleek, you can:
- Incorporate online: set up your Hong Kong company from Hong Kong or from overseas.
- Cover the statutory roles: a company secretary and a registered office address in Hong Kong.
- Keep the books and filings on time: accounting, audit coordination and profits tax returns.
- Get deadline reminders: alerts for IRD filings, MPF and the annual return before they fall due.
If you’re not sure which set-up fits your plans, talk to our team before you sign your first client.
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FAQs about starting an AI consulting firm in Hong Kong
Can I use overseas AI engineers without moving them to Hong Kong?
Yes. Your company can contract engineers who work remotely from their own country, and no Hong Kong visa is needed while they stay there. Check the contractor and tax rules where they live before you sign, and agree in writing who owns the code and models they produce for your clients.
Are there government grants for AI consulting firms?
There’s support for AI computing, but not for consulting itself. Cyberport’s AI Subsidy Scheme normally covers up to 70% of its supercomputing list price for AI start-ups incorporated in Hong Kong within the last seven years that do model development or fine-tuning, until 6 October 2027. The Technology Voucher Programme closed to new applications after 2024, so check current Hong Kong grants first.
Who owns copyright in AI-generated work in Hong Kong?
Usually the person who made the arrangements needed to create it. The Copyright Ordinance treats that person as the author of a computer-generated work, and each case turns on its facts. The Government proposed a text and data mining exception for AI training in 2025, but has put the bill on hold, so there’s no such exception yet.
Should I trademark my AI consultancy's name?
It’s worth considering if you plan to grow the brand or build your own tools. Incorporating a company doesn’t give you trademark rights in the name, so another business could register it as a mark. The process for registering a trademark runs through the Trade Marks Registry.
