If you want to start a business in Hangzhou and want to save tax legally, the "Regular Fixed Double Exemption for Individual Households" in 2026 may be just the right solution for you! The policy continues, but note that since December 1, 2025, the approved policy for self-employed households has been adjusted, with stricter regional restrictions. However, some designated zones in Hangzhou still retain this policy to provide tax incentives for qualified entrepreneurs under the "real business + compliance declaration".

In this article, we will systematically sort out the policy points, advantages, registration process and key considerations to help you get off to a solid start.

I. What is a regular fixed double-exemption self-employed person?

Regular fixed double-exemption self-employed households are mainly for small-scale operators (such as freelancers, e-commerce sellers, consultants, designers, etc.) who have simple accounts and no ability to build accounts. The tax authority directly approves a fixed tax amount or tax rate based on their industry and scale.

"Double exemption" means double exemption from VAT and personal income tax. Specifically:

If, in actual operation, monthly sales do not exceed 100,000 yuan (quarterly sales do not exceed 300,000 yuan, and annual sales do not exceed 1.2 million yuan) and general invoices are issued, you can enjoy full exemption from value-added tax (VAT), surtax, and personal income tax, and the comprehensive tax rate is 0.

If sales exceed these amounts, they may be converted to a checking account or other authorized method, and the tax burden will rise accordingly.

Comparison of three types of levies

Double Exemption Approved: 0% tax rate within the eligible amount.

Small approved (split business): VAT 1%, additional tax 0.06%, personal tax 0.25%-0.7%, combined rate about 1.4%-1.8%.

Checking the accounts: personal tax is paid at a stepped rate of 5%-35% on actual profit (income - costs).

II. Core advantages of the double exemption for authorized self-employed persons

Annual income up to 1.2 million → Taxes can be 0

Within the double exemption amount, VAT, surtax and personal income tax are all free of charge, which really makes the operation "zero tax burden".

Not subject to corporate income tax and tax on dividends

Individuals only pay "personal business income tax", and after-tax profits can be directly distributed without secondary taxation.

Flexible operation of funds

There is no need to compulsorily open a public account, and the use of the operator's personal bank account to receive payments is supported.

Registered capital contribution system (recommended 1-3 million yuan), no pressure of paid-in.

Suitable for asset-light model

E-commerce, consulting, design, technical services, intermediary services, small retail and other industries are applicable.

Solve common pain points of enterprises

It can help companies deal with tax challenges such as lack of cost tickets, inflated profits, and intermediary fee expenses.

III. Key conditions for applying for double waiver approval (updated in 2026)

Due to the tightened policy, the following park requirements need to be met to apply for a double waiver approval in Hangzhou in 2026:

1. Address requirements

Must be registered in a designated approved park, no residential or apartment addresses. If a commercial address is not available, a professional organization can be sought to provide a compliant attachment address.

2. Operator qualification

There can be no other general taxpayer enterprise under the legal person's name and no other individual business license. It is necessary to have no bad records such as violation of law and breach of trust.

3. Restrictions on the scale of operation

In principle, the annual invoicing amount should not exceed 1.2 million yuan (general invoices) in order to enjoy the "double exemption". The excess will be taxed at the normal rate.

4. Compliance commitments

Must commit to paying taxes in accordance with the law, filing returns on time, and not issuing false invoices or engaging in illegal activities.

IV. Materials required for registration

1、Individual name: Prepare 3-5 spare, format such as "Hangzhou XX District XX studio / service department / business".

2. Operator's information: original photo ID, real name cell phone number.

3、Registered capital: suggested 1-3 million yuan, paid-up can be.

4. Scope of business: fill in according to the actual business.

5、Registered address: park designated address or compliant dependent address (need to provide a lease contract or proof of address use).

V. Registration process (online + offline combined)

Step 1: Name verification and online filing

Login to "Zhejiang government services network", personal account into the "business start-up" page.

Select "Individual Business" to check and declare your name.

Fill in the basic information (with * is required), submit and wait for review (usually 1-3 working days).

Step 2: Electronic signatures

After passing the audit, log in the "Zheli Office" APP to complete the online electronic signature.

Step 3: Receive a business license

After signing and submitting, the photo can be issued in about 1 working day. We support mail pickup or lobby pickup.

Step 4: Engraving and bank account opening (on demand)

If you need a public account, you can bring your business license, official seal and other materials to the bank. Seal engraving (official seal, financial seal, etc.) can be arranged according to actual needs.

VI. How to apply for authorized collection?

Important note: Approved levy needs to be applied to the tax authority separately after the registration of the self-employed license is completed.

1、Online Process

① Log in to "Zhejiang Province Electronic Taxation Bureau".

② Select "Application for Approved Collection", fill out and submit the relevant materials.

(iii) The system will confirm the approved tax rate or amount after the tax authorities have passed the audit.

2、Offline Process

① Prepare the Application for Approved Collection Form.

②Submit the application at the office of your tax branch.

3. Cautions

① Quarterly invoicing needs to be kept within the authorized range (e.g., $300,000/quarter), or it may be converted to a checking account.

② If it is not possible to obtain a compliant invoice, the relevant costs and expenses shall not be deducted before tax, and tax adjustments shall be made at the time of remittance.

VII. Summary and recommendations

In 2026, Hangzhou's "double exemption approval" policy for small and micro-individuals will remain in place, but at a higher threshold and in a more centralized area. For qualified entrepreneurs, this is still a low-cost, low-tax, high-flexibility business opportunity.

Suitable for: freelancers, e-commerce sellers, designers, lecturers, consultants, small and micro service providers, etc.

Core Reminder:

Be sure to select the designated park for registration.

Strictly adhere to billing limits to avoid overages.

Adhere to compliance and file on time.

The road to entrepreneurship begins with sound planning. If you are planning to start a business in Hangzhou, you may want to include the "double exemption approved individual households" in your strategic choices. Grasp the policy dividend, compliant operation, in order to be able to walk steadily and far.