What are the features of a joint hindu family business. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. A business, which continues from one generation to another generation is known as joint hindu family business or firm. The meaning, advantages and disadvantages of joint family has been discussed in this article. Joint hindu family business free download pdf kupdf. Joint hindu family is a unit considers by law as separate entity for the purpose of taxation, but it is not considered as separate legal person. In joint hindu family business, only manager has the implied authority.
When the business continues from one generation to another in a hindu family it becomes a joint hindu family business. A joint family may encompass countless generations. Characteristics of a joint hindu family business 3. Huf or hindu undivided family is defined under the hindu law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. This is special form of business organization, which now exists only in india. The head of the family exercises full control over the affairs of the business. The familys members make the partner that is good plan for develop the business. Joint hindu family business is a distinct type of organization that is unique in india. Tata sons private limited it is a joint hindu family business which is headquartered in mumbai.
It does not have any separate and distinct legal entity from that. A joint hindu family is normally joint in worshipkitchen business. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india. Issues relating to succession planning introduction india has an almost unique system of promoters who own and manage much of the corporate sector. In sole proprietorship business, the proprietor has full control over each and every activity of the business. Scribd is the worlds largest social reading and publishing site.
A joint hindu family business is one that is owned by all the males in the family. A business, which is owned by family members who are living jointly, is known as hindu joint family business. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. Joint hindu family business meaning, examples and conclusion.
Distinction between partnership and joint hindu family firm. In every society and at every stage of development we. So the concept of hindu undivided family business took birth in india. Nevertheless, this type of business is losing its ground with the gradual decline in. It is not practised or followed elsewhere in the world. Hindu undivided family is involved in a business, giving the ownership to head of the family. It is governed by the hindu law, which is one of the several religious laws. In this form of business ownership, all members of an undivided hindu family do business together under the control of the head of the family who is known as the karta. A case study savitri shahani there has been no systematic research into the structure of the family in the field whether in rural or urban areas, and the most serious writers on the subject hare relied on general observations. It is said that the joint hindu family comes into existence by the law of inheritance it is important to note that the joint hindu family firm with the joint ownership of the business is created by the operation of hindu law and not by the contract between the coparceners the rights and liabilities of coparceners are determined by the provision of the hindu law. Chapter 4, joint hindu family business and cooperative society. Joint hindu family or hindu undivided family huf is an exclusive feature of hindu law.
Joint hindu family business is a different type of organization, which is found only in india. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. Thus, the business organisation in which a single person owns, manages. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. It is important to note that the joint hindu family firm with the joint ownership of the business is created by the operation of hindu law and not by the contract between the coparceners the business of joint hindu family is controlled and managed by the eldest male member of the family who is known as karta and other members of the. Joint hindu family business is a form of organization which exists only inindia. There are mammoth of promoter groups that have been around for decades such as tatas, birlas, mahindras, bajajs, goenkas and godrejs. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. In joint hindu family business, there is no restriction on the maximum number of members. In this article, we will discuss about joint hindu family business and how is the joint hindu family business formed. It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india so who all are members of such an organization.
Their survival beyond three generations introduction family as a social institution is one of the oldest surviving goode, 1982, but only in recent years family business, an important arm of it started receiving academic attention. Joint hindu family focuses in the personal business. In a partnership firm, every partner has a right to take part in the conduct and management of the firms business, whereas in a joint hindu family firm, the members have no such rights. Joint hindu family business the joint hindu family business is a distinct form of organisation peculiar to india. Apart from this, hindu religion is the largest religion in india than any other religion. It does not have any separate and distinct legal entity from that of its members. Introduction joint hindu family business is a form of commercial organization where a business is owned by the members of a hindu family living jointly. In this lesson let us find out more about these types of business organisations.
Even within india its existence is restricted to only certain parts of the country. It is a specific type of organization that is restricted to certain parts of india. The business is carried outbuy the male members of a undivided family. This form of organization has ownership in thehands of members of a hindu undivided family. The business of joint hindu family is controlled under the hindu law instead. A joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. If top professionals feel they will not have room to grow because the scion of the business family and his cousins will grab. Throughout the world, only india is the place where you find joint family culture. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. The birla family business which is a market leader in products ranging from cement from apparel, traces its.
What are some examples of a joint hindu family business. Joint hindu family business is the oldest and specific form of business organization found only in india. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. Joint hindu family firm is created by the operation of law. These businesses are managed by all members of a joint hindu family. The success of joint hindu family business is mostly dependent upon the efficiency of the karta and the mutual understanding between the coparceners. Madhu bhatia, tutorials point india private limited. A joint family also undivided family, joint household, extended family system is a large undivided family where more than one generation live together in a common house. Thanks for the a2a as posted in the picture, the joint hindu family business is a family business involves only the members of the family. It is one of the oldest form of organizations and in existence only insome parts of the country. The karta is the eldest male member of a joint hindu. Well, any person born into the family boy or girl up to the next coming three generations is a part of.
The joint hindu family business is controlled under the hindu law instead of the. Joint hindu family business an affectionate business. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. The joint hindu family business is a distinct form of organisation peculiar to india. Lets start with a brief explanation of joint hindu family business. Introduction family is one of the universal and permanent institutions of mankind. These businesses are totally governed by hindu laws. Joint hindu family business is a type of business organization which is found only in india.
A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. Disadvantages of joint hindu family business 1 limited. Why is joint hindu family business is established only in. It does not have any separate and distinct legal entity from that of its. A joint hindu family is normally joint in worshipkitchenbusiness.