Even daughter in lawswidowed daughters who has returned back to their parental side are part of a hindu joint family. The familys members make the partner that is good plan for develop the business. Disadvantages of joint hindu family business 1 limited. The joint hindu family business is controlled under the hindu law instead of the. A joint hindu family is normally joint in worshipkitchen business. The meaning, advantages and disadvantages of joint family has been discussed in this article. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of.
Characteristics of a joint hindu family business 3. 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. What are some examples of a joint hindu family business. 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. Joint hindu family business is a form of organization which exists only inindia. Issues relating to succession planning introduction india has an almost unique system of promoters who own and manage much of the corporate sector. 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 an affectionate business and a distinct form of organization peculiar to india.
When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. It refers to a form of organization wherein the business is owned and carried on by the members of the hindu undivided family huf. These businesses are totally governed by hindu laws. Hindu undivided family huf the joint hindu family business or the hindu undivided family huf is a unique type of business entity. It is governed by the hindu law, which is one of the several religious laws.
So the concept of hindu undivided family business took birth in india. 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. Joint hindu family business is a distinct type of organization that is unique in india. In this lesson let us find out more about these types of business organisations. In every society and at every stage of development we. This is special form of business organization, which now exists only in india. 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. 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. A joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. A joint hindu family business is one that is owned by all the males in the family. There are mammoth of promoter groups that have been around for decades such as tatas, birlas, mahindras, bajajs, goenkas and godrejs. 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.
Thus, the business organisation in which a single person owns, manages. Scribd is the worlds largest social reading and publishing site. 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 joint hindu family is headed by a karta, who is normally the eldest living male member of the family. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. It is not practised or followed elsewhere in the world. Joint hindu family business meaning, examples and conclusion. Joint hindu family or hindu undivided family huf is an exclusive feature of hindu law. In this article, we will discuss about joint hindu family business and how is the joint hindu family business formed. Distinction between partnership and joint hindu family firm. 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 joint hindu family business, there is no restriction on the maximum number of members. Why is joint hindu family business is established only in. Madhu bhatia, tutorials point india private limited.
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. The head of the family exercises full control over the affairs of the business. If top professionals feel they will not have room to grow because the scion of the business family and his cousins will grab. It means only one person or an individual is the owner of the business.
Apart from this, hindu religion is the largest religion in india than any other religion. A joint family may encompass countless generations. 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. Chapter 4, joint hindu family business and cooperative society. Joint hindu family focuses in the personal business. Nevertheless, this type of business is losing its ground with the gradual decline in. The business is carried outbuy the male members of a undivided family.
The business of joint hindu family is controlled under the hindu law instead. Joint hindu family business free download pdf kupdf. In joint hindu family business, only manager has the implied authority. 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. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. Joint hindu family business the joint hindu family business is a distinct form of organisation peculiar to india. This form of organization has ownership in thehands of members of a hindu undivided family. It is one of the oldest form of organizations and in existence only insome parts of the country. Joint hindu family business is a different type of organization, which is found only in india. It is a specific type of organization that is restricted to certain parts of india. Throughout the world, only india is the place where you find joint family culture.
Lets start with a brief explanation of joint hindu family business. A business, which is owned by family members who are living jointly, is known as hindu joint family business. Joint hindu family business is a type of business organization which is found only in india. Even within india its existence is restricted to only certain parts of the country. What are the features of a joint hindu family business. These businesses are managed by all members of a joint hindu family. 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. 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. Introduction family is one of the universal and permanent institutions of mankind. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. In the joint family, all the members do the business and control the system and follow the rules. There have been several questionnaires which aim to find out the role of the joint family in hindu businesses and. Joint hindu family business is the oldest and specific form of business organization found only in india.
A joint hindu family is normally joint in worshipkitchenbusiness. It does not have any separate and distinct legal entity from that of its members. Tata sons private limited it is a joint hindu family business which is headquartered in mumbai. The operation of law creates a joint hindu family business. When the business continues from one generation to another in a hindu family it becomes a joint hindu family 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. Well, any person born into the family boy or girl up to the next coming three generations is a part of. Hindu undivided family is involved in a business, giving the ownership to head of the family. 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. It does not have any separate and distinct legal entity from that. 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. The legal business which is carried by them known as joint hindu family business 18.
Why is joint hindu family business is established only in india. In sole proprietorship business, the proprietor has full control over each and every activity of the business. The birla family business which is a market leader in products ranging from cement from apparel, traces its. The karta is the eldest male member of a joint hindu. The success of joint hindu family business is mostly dependent upon the efficiency of the karta and the mutual understanding between the coparceners.
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