Differences between various forms of business organisation 51 partnership and association of persons 51 sole proprietorship and partnership 51 joint hindu family business and partnership 52 one person company v. I read somewhere that 62 percent of the gross national product of the western world is produced by family businesses. Joint hindu family business, though is an enlarged form of sole trading concern but it enjoys stability. It does not have any separate and distinct legal entity from that of its members.
It often creates parasites who love to feed on others income. A hindu joint family consists of the common ancestor and all his lineal male descendants upto any generation together with the wife or wives or widows and unmarried daughters of the common ancestor and of the lineal male descendants. Difference between partnership and hindu undivided family. The entire profit of business goes into the common pool of family. Legal formalities are minimum just like formation, it is. The legal business which is carried by them known as joint hindu family business 18. Joint hindu family business is a form of organization which exists only inindia. An huf comprises all the people who have lineally descended from a common ancestor and includes wives and unmarried daughters. Joint hindu family letter for corporate internet banking andor corporate care services if the user is different from the huf karta, then the poa format to be used as per the format attached.
Mutual agency there is mutual agency between the partners of a particular firm, and the act done by any of the partners binds the firm whereas there is no such mutual agency between the members of a joint hindu family. Joint hindu family focuses in the personal business. Joint hindu family business meaning, examples and conclusion. Joint hindu family business is the oldest and specific form of business organization found only in india. A hindu joint family consists of all the male members descended lineally from a common male ancestor together with their mothers, wives or widows and unmarried daughters 1. Sep 22, 2016 the legal business which is carried by them known as joint hindu family business 18. The term finds reference in the provisions of the income tax act, but the expression is not. Importance of joint hindu family include 1 secrecy there is a lot of secrecy in jhf.
Indias 10 oldest family owned businesses siliconindia. Here we have given all the reference books for family law, and also we have given notes and text book pdfs for family law. Hindu undivided family is used in the act with reference to all school of hindu. A business, which continues from one generation to another generation is known as joint hindu family business or firm. The joint hindu family business is controlled under the hindu law instead of the. Well, any person born into the family boy or girl up to the next coming three generations is a part of. Well, any person born into the family boy or girl up to the next coming three. Rut they deal only with a norm and not the reality. A joint family or undivided family is an extended family arrangement prevalent throughout the. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. Simply, a hindu joint family would at best be described as, the lineal descendants and their dependants where, the former trace their origin to one common ancestor. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary. Characteristics of joint family system in india 1051 words. Another form of business which is owned by the members of a joint hindu family and in which the family possesses some inherited property.
Protection of rights on divorce act, child and the. In this lesson let us find out more about these types of business organisations. Partition of the huf property can be of two types under the hindu law i. Cit that to constitute a joint hindu family, it is not necessary that there has to be more than one coparcener in the family. Whereas the parties aforementioned are members of a joint hindu family and posses joint family property and business, and. It is the result of hindu undivided family system followed in india. The manager of the hindu joint family or karta is required to declare all sources of income in form tj. The concept of joint family under hindu law as well as the huf in income tax act. Hindu joint family is a unit and in all matters it is represented by its karta.
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. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. Joint hindu family an affectionate business project. It talks about how the concept varies in its approach when the. Joint hindu family business free download as word doc. Joint hindu family letter for corporate internet banking and. This is special form of business organization, which now exists only in india.
A joint hindu family is headed by a karta, who is normally the eldest living male member of the family. It comes into existence by the operation of hindu law. Sep 27, 2017 in matters related to property laws, the term hindu undivided family huf if often used. 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. Partition means ending the status of joint hindu family. The familys members make the partner that is good plan for develop the business.
The karta is the eldest male member of a joint hindu. Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. The unity among its members is a great strength to face and remove any obstacles with sheer courage. Introduction the position of the karta or the manager of the hindu joint family finds its roots in the patriarch of the ancient family units. It is not practised or followed elsewhere in the world. Therefore, it cannot undertake big and risky business. A sole proprietorship form of business is very easy to form. Hindu undivided family do business under the control of the head of the. It commences with some introduction as to what exactly is the hindu joint family hjf. Joint hindu family business kinship and descent social institutions. It is said that the joint hindu family firm comes into existence by the law of inheritance. Joint hindu family business is a different type of organization, which is. The karta of the joint hindu family has all the powers to act on the behalf of the family and he is the only person who can represent the. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of.
This article provides information about the characteristics of joint family system in india. In the case of surjit lal chhabra 101 itr 776 sc, the joint family and the undivided family are synonymous. But in india, the huf interlock with firms is unique and specific in not only maintaining the familys control over the family business, but also driving a range of. The system is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same home, all bound by the common relationship. Difference between partnership and joint hindu family. The indian partnership act excludes an huf carrying on family business as. Joint hindu family business an affectionate business. It is one of the oldest form of organizations and in existence only insome parts of the country. Agreement of reference between members of hindu undivided.
Hindu undivided family is used in the act with reference to all school of hindu law mentioned above. Without sharing the family business to external parties and using the family business profit for the well being of particular family. The hindu undivided family in independent indias corporate. Apart from hindus, huf laws also cover jains, sikhs and buddhists. Thanks for the a2a as posted in the picture, the joint hindu family business is a family. The members of joint hindu family business are not required for registering their business. It is governed by the hindu law, which is one of the several religious laws. Before the multinational corporation, there was family business. In this blog post, shambhavi kumar, a student of jindal global law school, sonipat, analyzes the powers and responsibilities of the karta of a hindu joint family. The karta in joint hindu family business has a limited liability b unlimited liability c no liability for debts d joint liability answer. Finally, the spirit of oneness prevails in a joint family system.
Before the industrial revolution, there was family business. Improving entrepreneurship and family business effectiveness through research and sharing of best practices, and familybusiness. The joint hindu family business is managed by the seniormost member of the joint family called karta. Oct 21, 20 joint family is an empowered form of family. These businesses are managed by all members of a joint hindu family. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. Partition of property in hindu undivided family property. The head of the family is the head of the business also. Llp 53 partnership and company 53 limited company v. Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family.
The traditional assumption behind such a deduction is that every hindu family is normally a joint family. A joint hindu family business is not dissolved on the death, lunacy or insolvency of any of the copartners. Joint hindu family business is a type of business organization which is found only in india. Chapter 4, joint hindu family business and cooperative society. This form of organization has ownership in thehands of members of a hindu undivided family. The operation of law creates a joint hindu family business.
A joint family includes kinsmen, and generally includes three to four living generations, including uncles, aunts, nieces, nephews, and grandparents living together in the same household. Link to download this article in pdf format is at the bottom. In the joint family, all the members do the business and control the system and follow the rules. A common hindu family consists of people descended linearly from a common ancestor and include their single wives and daughters. A hindu joint family has no legal entity distinct and separate from that of the members who constitute it. It does not have any separate and distinct legal entity from that of its. A joint family may encompass countless generations. All business affairs are dealt with by the senior most male member of the hindu family. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf. Joint hindu family business project aims and objective. Here you can also download family law text book pdf for l. Property separate or self acquired of a member of a joint hindu family may be impressed with the character of joint family property if it is voluntarily thrown by the owner into the common stock with the intention of abandoning his separate claim. It is a specific form of business organisation found only in india. The joint hindu family business is an affectionate business and a distinct form of organization peculiar to india.
The entire law relating to hindu undivided family huf. For the purpose of the applicability of section 642 of the act, the expression cannot be given a restricted meaning to include only those hindu undivided families which comprises of the individual, his wife and minor child of which. The term hindu undivided family has not been defined in the income tax act. Joint hindu family business has generally limited financial and managerial resource. In this business, an individual becomes a member of business by virtue of birth in a hindu family. Basic information 1 2 name of hindu joint family as registered with lhdnm. For more detailed info about this you can find the reference below. The joint hindu family business is a distinct form of organisation peculiar to india.
It preserves family values and business value within the family ensuring better decision making and preparedness for the next generation to come. In joint hindu family business, only manager has the implied authority. The only substantial resemblance between the two forms of association seems to be that in each case the members carry on business together. This paper primarily focuses on the concept of the hindu joint family and its legal dimensions. Hindu undivided family carrying on a family business are not partners in the sense that their relationship inter it is not governed by the partnership act, 1932, but the hindu law while deciding joint ownership in the family business. It is given due recognition by the income tax act, 1961, and by the joint hindu succession act, 1956, but it lacks legal status. The holding structures are comprised of individuallyowned stocks, along with stocks held by hindu undivided family accounts except for the two business groups of nonhindu origin in our survey, 1 and a number of group companies spread across the four forms of business entities stated above. With a very small amount of capital one can start the business. The hindu joint family is the normal condition of the hindu society.
Of course the classic advice on this is not to mix business with family. Disadvantages of joint hindu family business 1 limited. A joint hindu family is normally joint in worshipkitchen business. The fundamental concept of such a hindu joint family where there is a common male ancestor with his lineal descendants in the male line. The concept of hindu joint family is nothing new, and it is in existence since long. What is the procedure for partition of a family business. A business cannot be partitioned by metes and bounds in the case of partition for conversion of the family business into partnership. On partition the shares of the coparceners in the joint family business become.
Agreement of reference between members of hindu undivided family. Karta of a hindu joint family powers and responsibilities. A joint hindu family is normally joint in worshipkitchenbusiness. He can enter into a contract with third parties, draw bills of exchange, the issue receives, sell, or mortgage the property of joint hindu family firm in the interest. Wherever, there is hindu undivided family, there is the scope of joint hindu family business. Joint hindu family hindu undivided family huf hindu joint family is a kind of family system, which is typically seen amongst the hindus only. Family law is an area of the law that deals with family matters such as adoption, divorce and domestic relations. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. Aug 22, 2010 wherever, there is hindu undivided family, there is the scope of joint hindu family business. Hindu joint family business has enforced under the mitakshara law. The importance of joint family is understood by the indians since time immemorial.
This kind of family was well recognised by customary laws. The joint hindu family system has been around in south asia for centuries. The family members handle the business and change according to generation. There is always a lack of motivation among the members to work hard. The sole proprietorship form of business is the most simple and common in our country. Huf consists of karta of a huf is the senior most male member of the family and in financial terms he can also be called manager of the family all male adults in the family are called coparceners others member. Sep 01, 20 joint hindu family business is a distinct type of organisation which is unique to india. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Panikkar has rightly observed, the caste system, the village community and the joint family system constitute the basic pillars of the indian social system.
The joint family is the bedrock on which hindu social organization is built. Jun 03, 2017 a joint hindu family is normally joint in worshipkitchen business. A family when lives together with all family members up to 2nd generation like grand parents, parents, uncle, aunts and their children is called a joint family. Ive done business with my wife, daughter, soninlaw, and various mixtures of those. Under hindu law when the joint family status comes to an end there is division of property among members and joint ownership of property comes to an end. Before the enlightenment of greece and the empire of rome, there was family business,said willium o hara, an academician specializing in family business to demonstrate the longevity and endurance of the family businesses tradition. 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. Solution hindu joint family business is a structure of commercial association where a business is possessed via the members of a hindu family living jointly. When a business enterprise is run by the family member and they run the business as family business is called joint hindu family business. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. Joint hindu family firm is created by the operation of law. Joint family property presumptions with special reference to doctrine of blending. What are the aims and objectives of a joint hindu family.
In joint hindu family business, there is no restriction on the maximum number of members. Joint hindu family business is a different type of organization, which is found only in india. Some suggestions for family business planning, startups. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity.
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