{"id":2120717,"date":"2026-09-13T11:56:11","date_gmt":"2026-09-13T09:56:11","guid":{"rendered":"https:\/\/kohenavocats.fr\/2026\/09\/13\/foreign-company-france-lease-unpaid-rent-termination-stop-eviction-abroad\/"},"modified":"2026-09-13T11:56:11","modified_gmt":"2026-09-13T09:56:11","slug":"foreign-company-france-lease-unpaid-rent-termination-stop-eviction-abroad","status":"publish","type":"post","link":"https:\/\/kohenavocats.fr\/en\/2026\/09\/13\/foreign-company-france-lease-unpaid-rent-termination-stop-eviction-abroad\/","title":{"rendered":"Your French Landlord Threatens to Terminate Your Company Lease Over Unpaid Rent: One-Month Order, Grace Periods and How a Foreign Company Stops Eviction From Abroad"},"content":{"rendered":"

You run your French company from London, New York, Dubai or Singapore, and the worrying letter has just arrived from France: your landlord’s commissaire de justice<\/em> (the court officer formerly called huissier de justice<\/em>, the only person who can serve binding procedural documents) has served a formal order to pay the rent within one month, stating that your company lease will otherwise be terminated automatically. Your shop, restaurant, workshop or office is suddenly at risk, your French bank account may already be under pressure, and your local manager is asking whether you must fly to Paris tomorrow. This guide explains, in plain English for a foreign owner, how a French commercial lease ends over unpaid rent, how you stop the automatic termination from abroad, and what the saved lease will then cost you. Every French term is translated on first use: the bail commercial<\/a><\/em> (commercial lease with protected tenant status), the Kbis<\/em> (the official company identity certificate issued by the greffe<\/em>, the registry office of the commercial court), the RCS<\/em> (Registre du commerce et des soci\u00e9t\u00e9s<\/em>, the French companies register), the commandement de payer<\/a><\/em> (formal order to pay served by the court officer), the clause r\u00e9solutoire<\/a><\/em> (automatic termination clause), and the tribunal judiciaire<\/em> (the ordinary civil court that hears commercial lease cases).<\/p>\n

The French commercial lease, nicknamed the 3-6-9 lease because the tenant can leave every three years inside a nine-year minimum, is one of the most protective tenant regimes in Europe, and it applies fully to a company owned or directed from abroad once it is registered in France. The danger is the mirror image: because the statute writes the termination mechanism into the lease itself, a landlord who follows the one-month procedure to the letter can obtain eviction even while you are negotiating by email from another continent. The good news is that the same statute gives the judge wide powers to grant payment schedules of up to two years, suspend the termination clause, and keep your business in the premises while you catch up, provided you react inside the deadlines and through a French lawyer. This article shows you the exact sequence: what the one-month order must contain, how to ask for grace periods before the clause is acquired, and how arrears, the indemnit\u00e9 d’occupation<\/em> (occupation payment due after the lease ends) and the future renewal rent are then calculated at market rental value. If your problem is instead a straight refusal to renew at expiry with an offer of eviction money, read our companion guide on how a foreign owner contests the cong\u00e9, claims eviction compensation and stays<\/a>, and keep this guide for the emergency where rent is unpaid. For the wider formation-to-operation picture, from bank account to Kbis to VAT, start from our pillar guide on setting up a company in France as a foreign founder<\/a>.<\/p>\n

I. How do you stop a French commercial lease termination for unpaid rent when you run the company from abroad?<\/h2>\n

A. What one-month order to pay really triggers termination, and what deadline kills your lease?<\/h3>\n

Almost every French commercial lease contains a clause r\u00e9solutoire<\/em>, the clause that terminates the lease automatically if the tenant does not pay. You do not negotiate this clause out of existence in practice: the statute organises it, and the courts apply it mechanically once the landlord’s paperwork is correct. Article L. 145-41 of the Commercial Code<\/a> states the rule in one sentence you should memorise: “Toute clause ins\u00e9r\u00e9e dans le bail pr\u00e9voyant la r\u00e9siliation de plein droit ne produit effet qu’un mois apr\u00e8s un commandement demeur\u00e9 infructueux. Le commandement doit, \u00e0 peine de nullit\u00e9, mentionner ce d\u00e9lai.” In English: an automatic termination clause takes effect only one month after a formal order to pay that has remained unpaid, and the order must mention that one-month period on pain of nullity. Three consequences follow. First, without a commandement de payer visant la clause r\u00e9solutoire<\/em> (an order expressly invoking the termination clause) served by a commissaire de justice<\/em>, there is no automatic termination, however many friendly reminder letters or emails the landlord or its agent has sent. Second, the one-month clock runs from service of that document, not from the invoice date, not from the accounting reminder, and not from your internal wire-transfer delay. Third, if the order forgets to state the one-month period, it is void, and everything built on it collapses: that single missing sentence has saved many leases.<\/p>\n

Read the order the day it arrives and check five points before anything else. Who served it: only a commissaire de justice<\/em> can serve a valid commandement<\/em>; a letter from the landlord, the property manager or a foreign law firm is not one. What it demands: the exact statement of unpaid rent and charges, with periods and amounts, because a tenant who cannot identify what is claimed cannot be expected to pay it within the month. Whether it invokes the termination clause by name and reproduces or cites it: an order that merely asks for money without stating that the lease will be terminated after one month does not trigger the clause. Whether it mentions the one-month period expressly, as the statute requires on pain of nullity. And whether your lease was even eligible for commercial-lease status on that date: article L. 145-1 of the Commercial Code<\/a> applies the protective chapter to leases of premises where a business (fonds de commerce<\/em>, the going concern made of customers, stock, equipment and the right to the lease) is operated by a trader or company registered with the RCS, and article L. 145-4<\/a> fixes the minimum lease length at nine years while letting the tenant, and only the tenant as a rule, walk away every three years on six months’ notice. A foreign-owned SAS (soci\u00e9t\u00e9 par actions simplifi\u00e9e<\/em>, the flexible limited company most foreign founders choose) or SARL (soci\u00e9t\u00e9 \u00e0 responsabilit\u00e9 limit\u00e9e<\/em>, the classic private limited company) registered at the RCS and operating its business from the premises qualifies exactly like a French-owned company, and the Kbis extract proves that registration to the judge. If the order is defective on any of these points, your lawyer raises nullity first, before any discussion of the money, because a void order cannot acquire the clause no matter how large the arrears.<\/p>\n

The Lyon emergency case of August 2026 shows the mechanism working exactly as the statute describes, and it is worth reading closely because your file will look very similar. The owner, a property company, had let Lyon premises for nine years from November 2020 at 15,000 euros annual rent, with an express clause that failure to pay a single instalment on its due date would terminate the lease automatically one month after an unsuccessful order to pay. After payment defaults, the landlord served a commandement de payer<\/em> for 9,314.58 euros expressly invoking the termination clause on 15 July 2025. The tenant admitted it had not cleared the causes of the order within the month. The emergency judge therefore held: “Il convient par cons\u00e9quent de constater l’acquisition de la clause r\u00e9solutoire au 16 ao\u00fbt 2025.” The clause was acquired on 16 August 2025, one month and one day after service. That sentence is the pivot of every unpaid-rent file: before it, you can still pay and kill the procedure; after it, only the judge’s grace periods can suspend its effects, and eviction, debt and the occupation payment follow unless you obtain them. The decision is published on the official judiciary portal at TJ Lyon, r\u00e9f\u00e9r\u00e9, 10 August 2026, RG 25\/02382<\/a>, and your lawyer will cite it to the court to show the timetable the judge expects.<\/p>\n

Three practical defences exist inside that one-month window, and all three can be organised from abroad within days. Pay everything claimed, in full, before the month expires, by wire transfer with the order reference, and keep the bank proof: full payment inside the month means the clause never acquires, even if relations with the landlord are ruined. If the amount is wrong, pay the undisputed part immediately and contest the balance in writing through your lawyer, setting out period by period what is admitted and what is disputed (indexation errors, charges that belong to the owner, payments already wired but not yet allocated, COVID credits, deposits wrongly retained). Partial payment does not stop acquisition for the unpaid balance, but it shrinks the debt the judge will schedule and shows good faith that supports grace periods. If the order itself is irregular, do not pay blindly to “calm things down” before your lawyer has checked nullity: paying a void order’s full amount is harmless, but signing an acknowledgement that the order was regular, or a repayment plan that recites that the clause is already acquired when it is not, can waive the nullity argument. In all three cases, mandate a French lawyer the week the order arrives, give a power of attorney by email, and let the lawyer acknowledge service, request the detailed rent statement (d\u00e9compte<\/em>), and put the landlord on written notice that you dispute or will pay: French judges reading the file six months later reward the tenant who reacted in writing within days, and punish the file that contains only silence and two late wires.<\/p>\n

B. How do you get grace periods and freeze eviction before the judge?<\/h3>\n

Once the month has expired unpaid, the lease is legally terminated by the clause, but the story is not over: the French judge can resurrect it. Article 1343-5 of the Civil Code<\/a> provides: “Le juge peut, compte tenu de la situation du d\u00e9biteur et en consid\u00e9ration des besoins du cr\u00e9ancier, reporter ou \u00e9chelonner, dans la limite de deux ann\u00e9es, le paiement des sommes dues.” The court may defer or spread the debt over up to two years, taking into account your situation and the landlord’s needs, and article L. 145-41<\/a> adds the lease-specific effect: judges hearing a claim made under article 1343-5 may suspend the realisation and effects of termination clauses, and the clause does not operate if the tenant clears the debt on the judge’s terms. Since the May 2026 simplification law, the same article conditions grace periods for unpaid rent on two concrete proofs at the first hearing: your capacity to pay the rental debt and the resumption of full payment of the current rent before that date. A foreign company that keeps paying the current rent from the month of the order, even while the old arrears are being scheduled, therefore enters the hearing in a far stronger position than one that stopped everything.<\/p>\n

The Lyon order shows what a granted schedule looks like in practice and what it demands from you. The parties agreed the arrears at 19,574.68 euros including the second quarter of 2026, and the judge suspended the effects of the termination clause while the tenant paid that backlog in instalments plus the current rent and charges on each contractual due date. If the tenant honoured both the backlog schedule and every current instalment, the clause would be deemed never to have operated and the lease would continue; if it missed one scheduled backlog payment or one current payment, the lease would stand terminated retroactively from 16 August 2025, the whole debt would become immediately due, the tenant would owe an occupation payment at the contractual rent level from that date, and eviction with the assistance of public force could follow one month after a registered letter ordering it to vacate. That is the standard French bargain: the judge gives you up to twenty-four months, but transforms the first missed post-judgment payment into an eviction order without a second trial. Your file from abroad must therefore prove three things at once: that the company is solvent enough to fund the schedule (recent bank statements, parent-company support letter, payment of current rent resumed), that the default was an accident rather than a method (cash-flow gap, blocked foreign transfer, change of manager, bank compliance freeze, with documents), and that the schedule proposed is realistic month by month. Ask your lawyer to file the request for grace periods (d\u00e9lais de gr\u00e2ce<\/em>) at the very first hearing, with a written schedule attached, because courts grant them far more readily to the tenant who arrives with a plan than to the one who asks for time to prepare a plan.<\/p>\n

Procedure from abroad is straightforward once the mandate is in place. Your lawyer appears before the tribunal judiciaire<\/em> of the premises (the Paris court if the shop is in Paris, the Lyon court if it is in Lyon: jurisdiction follows the building, never your head office), or before its emergency branch, the juge des r\u00e9f\u00e9r\u00e9s<\/em>, if the landlord sues for eviction urgently. You do not need to attend in person: representation by a French lawyer (avocat<\/em>) with a signed authority is enough, exhibits can be sworn-translated where needed, and testimony is written. Expect the landlord to ask for four things together: confirmation that the clause is acquired, eviction, a provisional order to pay the arrears, and an occupation payment from termination. Your lawyer answers with four mirrors: contest or reserve on acquisition (nullity of the order if arguable), request suspension plus a schedule under articles L. 145-41 and 1343-5, offer the current rent plus the first scheduled instalment at the hearing table, and dispute any inflated extras (penalty clauses suspended by the judge during the grace period, collection fees that belong to the landlord, indexation miscalculated). Note that during the judge-fixed period, late-interest mark-ups and contractual penalties do not accrue, and any contrary lease term is deemed unwritten, which is why obtaining the schedule quickly saves more than the arrears themselves. The official public guide confirms the architecture in plain terms: the landlord must send the termination order through a court officer and the tenant can ask the court for time; see service-public.fr on the landlord’s refusal and the tenant’s remedies<\/a> for the parallel renewal procedure and the two-year court deadline that governs all lease actions.<\/p>\n

II. Once the emergency is frozen, how do you fix the lease debt and secure the premises?<\/h2>\n

A. How much will the saved lease really cost: arrears, occupation payment and charges?<\/h3>\n

Saving the lease does not erase the debt; it reprices it under judicial control, and a foreign owner who budgets only the missed rents will be caught short. The schedule covers the arrears stated in the order plus everything that fell due afterwards: subsequent quarterly or monthly rents, service charges (charges locatives<\/em>) and property taxes contractually passed to the tenant, late interest at the legal rate from the order, and a share of the court costs. Your lawyer should demand a line-by-line updated statement at every hearing, because French commercial leases pass many owner costs to the tenant and the 2014 Pinel reform only partly fenced that practice: the inventory of charges, taxes and works (inventaire des charges<\/em>) annexed to modern leases caps what can be passed on, and anything outside the lease and the statute is contestable. Pay the current rent by direct debit from the French account from the order month onwards, never from the foreign account with value-date gaps, so that no new default feeds the file while the schedule runs. If the French bank has frozen transfers after a compliance review, treat that as a parallel emergency with its own procedure, described in our guide to recovering funds when a French bank freezes or closes the company account<\/a>, rather than letting the lease judge discover unpaid current rents you could have funded.<\/p>\n

The second cost line surprises foreign owners most: the indemnit\u00e9 d’occupation<\/em>, the daily payment due once the lease has expired or been judicially terminated, which is not rent but looks exactly like it. Article L. 145-28 of the Commercial Code<\/a> protects the tenant who can claim eviction money with the famous guarantee: “Aucun locataire pouvant pr\u00e9tendre \u00e0 une indemnit\u00e9 d’\u00e9viction ne peut \u00eatre oblig\u00e9 de quitter les lieux avant de l’avoir re\u00e7ue.” No tenant entitled to eviction compensation can be forced out before receiving it, and until payment it stays on the expired lease terms, with the occupation payment assessed under the renewal-rent sections. The Court of Cassation drew the pricing consequence on 27 February 2025 in Cass. 3rd civ., 27 February 2025, appeal 23-18.219, ruling 102 FS-B<\/a>: “le bailleur peut pr\u00e9tendre, d\u00e8s l’expiration du bail, au paiement d’une indemnit\u00e9 d’occupation, distincte du loyer, qui, \u00e0 d\u00e9faut de convention contraire, correspond \u00e0 la valeur locative des lieux d\u00e9termin\u00e9e selon les crit\u00e8res de l’article L. 145-33 du code de commerce.” From expiry, the landlord gets an occupation payment distinct from rent, equal by default to the market rental value under article L. 145-33<\/a>, and the Court added that when the landlord later exercises its option the tenant owes that value retroactively from the expiry of the lease whose renewal had first been accepted. In a termination-for-arrears file the logic is the same: the Lyon schedule fixed the post-termination occupation payment at the contractual rent-and-charges level, which the judge can align on market value if a party proves the contract price is off-market. Budget this line from the termination date the landlord alleges, not from the eviction date you fear, and understand that every month spent negotiating without paying current sums increases the occupation debt the schedule must absorb.<\/p>\n

Two limitation traps then decide whether satellite claims survive. Article L. 145-60<\/a> bars everything fast: “Toutes les actions exerc\u00e9es en vertu du pr\u00e9sent chapitre se prescrivent par deux ans.” All actions under the commercial-lease chapter expire after two years. The Court of Cassation gave that deadline teeth on 12 February 2026 in Cass. 3rd civ., 12 February 2026, appeal 24-10.578, ruling 109 FS-B<\/a>, holding that “la mauvaise foi du bailleur n’est pas une cause d’interruption ou de suspension de la prescription biennale de l’action en paiement de l’indemnit\u00e9 d’\u00e9viction, laquelle court \u00e0 compter de la date d’effet du cong\u00e9 m\u00eame lorsqu’il est d\u00e9livr\u00e9 avec offre d’indemnit\u00e9 d’\u00e9viction”. The landlord’s bad faith neither interrupts nor suspends the two-year clock for claiming eviction money, which runs from the cong\u00e9’s effective date even when served with an offer of compensation, and the tenant whose claim is time-barred becomes an occupier without right or title. The case concerned eviction money, not arrears, but the lesson travels directly: every lease action you hold, from contesting the order to claiming overpaid charges, lives inside that same two-year cage measured from the triggering notice. Separately, article L. 145-9<\/a> requires any landlord’s notice ending or refusing the lease to be served by court-officer document, to state its reasons on pain of nullity, and to warn that the tenant who wants to contest the notice or claim eviction money must go to court within two years of the notice’s effective date. When you receive any lease notice, diary that two-year date the same day: missing it turns a protected tenant into a trespasser whatever the merits.<\/p>\n

B. How do you turn the rescue into a durable lease: renewal rent, transfer and the next three years?<\/h3>\n

A lease saved by grace periods still ends one day, and the smart foreign owner uses the breathing space to renegotiate the economics rather than merely survive the schedule. The renewal rent is the first lever. Article L. 145-33<\/a> provides that renewed or revised rents must match rental value, fixed by agreement or by the judge on five factors: the premises’ characteristics, their permitted use (destination des lieux<\/em>), the parties’ respective obligations, local commerciality factors, and prices commonly charged nearby. In plain terms, the corner restaurant with an authorised late-night terrace and a landlord who pays nothing for works does not pay the same renewed rent as the windowless storage unit in the same street whose tenant funded everything. If your current rent is above market because the lease was signed at the peak, prepare the renewal negotiation during the grace period with comparable lettings evidence; if it is below market, expect the landlord to push for uncapping (d\u00e9plafonnement<\/em>) at the next renewal and model that increase now. Our companion refusal guide explains how eviction compensation is then computed when renewal is refused outright: the Toulon court recalled in TJ Toulon, 12 May 2026, RG 22\/00596<\/a> that the statute creates a presumption of loss of the business, in its words provisions that “emportent pr\u00e9somption que le d\u00e9faut de renouvellement entra\u00eene la disparition du fonds”, so the evicted tenant claims replacement value equal to the business’s market value unless the landlord proves lesser harm, or removal value measured by the lease right where transfer is possible. That compensation logic, and the article L. 145-14<\/a> rule that refusal without a statutory exception means paying for the lost business plus moving and reinstallation costs, is your leverage in any agreed exit: a landlord who would rather you leave than renew at market rent must pay for that preference.<\/p>\n

The second lever is transferability: the droit au bail<\/em> (the transferable right to the lease, a balance-sheet asset in France) can be sold with the business or independently if the lease allows, which lets a foreign group that no longer wants the site recover value instead of surrendering it. Most leases restrict assignment to a buyer of the whole business and impose joint liability (garantie solidaire<\/em>) of assignor and assignee for a few years; read that clause before promising the landlord you will “find a successor”. Any assignee will run the same checks a judge would: RCS registration and Kbis of the French company, planning use compatible with the destination<\/em> clause (a lease granted for “catering on site” does not authorise a dark kitchen, a lease for “offices” does not authorise retail footfall), inventory of fixtures, and the charge-sharing statement. The third lever is operational discipline for the next three-year stretch until your own next exit window: domiciliate the company correctly (the greffe<\/em> holds the registered address and the BODACC<\/em>, the official gazette of civil and commercial announcements, publishes creations, transfers and insolvency events; the INPI<\/em> single-window, the guichet unique<\/em>, now centralises filings), calendar the triennial exit date with its six-month notice, insure the premises as the lease requires, and keep a rent ledger that a judge can read in five minutes. Corporate tax follows the premises’ profits regardless of where you live: French-source profits of the French company pay imp\u00f4t sur les soci\u00e9t\u00e9s<\/em> (IS, corporate income tax) with returns and instalments on the French calendar, as our hub on French corporate tax for foreign owners, IS at 25 percent, branch versus subsidiary, and paying on time<\/a> explains, so a lease rescue that saves turnover but misses the tax calendar merely swaps one enforcement officer for another. And if the arrears crisis revealed that the French unit cannot pay its debts as they fall due, treat that as a separate directors’ emergency with its own forty-five-day filing logic before it becomes a personal ban, rather than hiding it inside the lease schedule.<\/p>\n

Conclusion<\/h2>\n

A French commercial lease does not die because you owe money; it dies one month after a formally perfect order to pay that you left unanswered, and it can be revived by a judge who believes your schedule. The sequence for a foreign owner is therefore rigid: check the commandement<\/em> for service, amount, clause reference and the one-month warning the day it arrives, because a missing warning voids everything; pay or secure the undisputed sums immediately while contesting the rest line by line; mandate a French lawyer within days to seek suspension and a schedule of up to two years under articles L. 145-41 and 1343-5, arriving at the first hearing with current rent resumed and a month-by-month plan the company can fund. Behind the emergency, budget the true cost of the rescue: scheduled arrears plus current rents and charges, an occupation payment aligned on market rental value from the alleged termination date, and the two-year limitation cage that kills any satellite claim filed late. Used well, the grace period buys more than survival: it reopens the renewal-rent discussion on article L. 145-33 market-value ground, preserves a saleable droit au bail<\/em>, and restores the three-year rhythm of the 3-6-9 lease. Handled from abroad with documents, wires and a lawyer in the room, the landlord’s one-month letter becomes a payment plan; ignored, the same letter becomes, exactly one month later, an eviction with public force, a debt immediately due, and premises to return within thirty days of the registered letter that says so.<\/p>\n

Need a quick opinion on your case<\/h2>\n

Send us the order to pay and your rent statement today: a telephone consultation within 48 hours with a lawyer of the firm to check whether the order is valid, what schedule the court will accept, and how to keep the premises while you catch up. Call +33 6 46 60 58 22<\/a> or write via the contact page<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Served with a one-month order to pay for your French company lease? 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