SOFICA: a mechanism for financing French cinema

SOFICA: a mechanism for financing French cinema

For over 40 years, SOFICA (Sociétés de Financement de l’Industrie Cinématographique et de l’Audiovisuel) have been an essential tool for supporting French film and audiovisual production. This mechanism makes it possible to mobilize private savings for the production of French and European works, while offering investors a specific tax framework.

The SOFICA principle

Created in 1985 on the initiative of the public authorities, SOFICA’s main mission is to raise funds from private investors in order to reinvest them in the financing of film and audiovisual works.

These companies are approved each year by the Ministry of Economy and Finance and the Ministry of Culture, which set, in particular:

• the maximum amount of annual fundraising,
• the investment rules,
• the commitments in terms of supporting diversity in creation.

Participation in the financing of French cinema

SOFICA companies play a major role in financing French film and audiovisual creation. They complement other sources of financing (television channels, platforms, public aid, distributors).

Thanks to this system, numerous films and series are produced each year, strengthening the influence of French cinema in France and internationally.

Fundraising

Fundraising is the first key step in the operation of a SOFICA. It is generally carried out over a limited period of time, from individuals who are French tax residents, within a strictly regulated framework.

Creation and structuring of entities

Once created, the SOFICA has a limited period of time to invest the funds raised, according to clearly defined allocation rules:

• investments in producer shares,
• subscriptions to the capital of production companies,
• pre-financing or co-production of works.

Specific tax incentives

One of the major attractions of SOFICA is their special tax regime, designed to encourage private investment in culture.

Under certain conditions, investors can benefit from:

• an income tax reduction of up to 48% of the amounts invested,
• within regulatory limits,
• with a holding period for securities generally ranging from 5 to 10 years.

Uptevia’s role in the SOFICA ecosystem

Uptevia plays a central role in record keeping and securities services related to SOFICA. In this capacity, Uptevia is responsible for:

• registering subscriptions,
• opening registered shareholder accounts,
• compiling the register,
• centralizing general meetings (constitution, annual, liquidation),
• the preparation of tax certificates and annual statements
• the management of securities movements,
• the storage and reliability of investor data,
• the centralization of liquidation,
• administrative monitoring throughout the life of the SOFICA.

This expertise guarantees the security, transparency, and regulatory compliance of the medium.

Throughout the life cycle of a SOFICA, Uptevia supports the players involved in the scheme by providing services that are essential to its smooth running. Uptevia contributes to:

• the reliability of operations,
• the security of investor data,
• the smooth flow of communication between management companies, investors, and institutional partners.

This expertise allows SOFICA to focus fully on its primary mission: financing creation.