Optimal President Term Length When Establishing a Company in Japan

Hi, my name is Taisei Koshida, and I am a certified public accountant as well as a tax accountant.

I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

This blog may help if you are unclear about the president’s term in Japan.

In Japan, a director’s term of office is a registered item

Terms for roles like president or other directors are registered in Japan, allowing third parties to verify them. Registering this costs tens of thousands of yen for registration taxes and fees for judicial scriveners. If you neglect to renew the term, you may face penalties of tens of thousands of yen.

You can freely choose between one to ten years

The director’s term of office can be chosen freely from one to ten years.

Decide the director’s term based on the company’s situation

For a company wholly owned by the president as the shareholder, a ten-year term is recommended, considering registration costs and the risk of forgetting term renewals. However, if the company raises capital from external investors, circumstances may change; a term of two to five years might be more suitable.

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