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.
