KOCHI: Finally, Infopark Kochi’s efforts to shed its charitable society tag has come to fruition. In a government order (GO) dated March 15, 2026, the state electronics and information technology department approved the change of status of Infopark Kerala from a charitable society to a government company under section 2 (45) of the Companies Act, 2013.
Earlier, a source at Infopark told TNIE that registering the IT park as a company would be the road map towards its initial public offering (IPO), which will, in turn, help it raise funds for growth, besides ensuring greater visibility. The source also mentioned that the IPO, which will make Infopark the first Kerala government entity to list on the stock exchanges, might happen a few years after completion of Phase III and IV.
Functioning as a charitable society didn’t give Infopark the flexibility needed for future ventures. Even the Central Board of Direct Taxes has long taken the position that IT parks are not charitable societies.
Welcoming the GO, Susanth Kurunthil, CEO of Infopark, said the conversion comes with a lot of advantages. “The key will be tax benefits. Once it is registered as a government company, Infopark will enjoy a lower corporate tax rate of 25% plus surcharge,” he said.
Income tax will come to around 29% plus surcharge. “Currently, we pay a rate of 40% plus surcharge,” he added. Another plus of the for-profit company tag is that Infopark will be able to enter into joint ventures and attract investments, Susanth said.
But what is a government company? As per the Companies Act, a government company is one in which not less than 51% of the paid-up share capital is held by the central government, or by any state government or governments, or partly by the central government and partly by one or more state governments, and includes a company which is a subsidiary company of such a government company.
As per the GO, Susanth has been entrusted with the responsibility of submitting the draft memorandum of association and article of association to the state government. The GO stipulates certain conditions including the fact that HR policy, that also covers creation of posts, decision on salaries and other benefits will be vested with the state government.
The right to make all important decisions, including on the handling of assets, will also be vested with the state government.