Infopark Kochi is awaiting clarification from the State government regarding its conversion from a charitable society to a company registered under the Companies Act, 2013.
The clarification sought is whether Infopark should be registered as a for-profit or a non-profit company. While a formal decision is yet to be announced, it increasingly appears that the government favours a non-profit organisation under Section 8 of the Companies Act.
The government order issued last month, which sanctioned the third phase of Infopark’s expansion, also directed that Infopark urgently complete the process of bylaw amendment and conversion into a company. The new corporate structure will legally enable it to own, develop, and manage such a large-scale commercial project and enter into the necessary contractual agreements for the land-pooling scheme.
“Whether as a for-profit or non-profit entity, the conversion of Infopark from a charitable society to a company comes with inherent advantages. A significant reduction in income tax is one of the main benefits. As a charitable society, Infopark is taxed at around 40% to 42%, whereas shifting to a corporate structure would reduce this to approximately 25% to 29%,” said sources.
Additionally, becoming a company enables Infopark to enter into potential joint ventures and acquisitions in the future, as a charitable society is legally prohibited from holding shares in another entity. However, registering as a non-profit company prevents Infopark from accessing the capital market and launching an Initial Public Offering (IPO), which could significantly limit its ability to raise capital.
Cochin International Airport Limited (CIAL), a for-profit company, is able to attract investments from private investors and distribute profits as dividends to its shareholders. A company registered under Section 8 cannot issue shares, as it is technically limited by guarantee rather than by shareholding, sources said.
Last month, Infopark and the Greater Cochin Development Authority (GCDA) signed a memorandum of understanding (MoU) to implement the project through the land-pooling model. Phase III of Infopark Kochi, envisioned as a world-class ‘Integrated AI Township’, is expected to be completed by 2030. The township is proposed to come up on 300 acres, of which 100 acres will be allocated for IT businesses. The MoU assigns the GCDA the responsibility of identifying suitable land for the project through land pooling.
Published – October 07, 2025 12:40 am IST
