Explain the meaning and features of Joint Hindu Family Business.

Explanation

The Joint Hindu Family Business is a distinct form of organisation peculiar to India. Joint Hindu Family Firm is created by the operation of law. It does not have any separate and distinct legal entity from that of its members.


Features:
(1) Formation: Joint Hindu Family cannot be formed or created by any contract or agreement because this organization came into existence by the operation of the "Hindu Law". It is not formed by any agreement like partnership firm. Whenever, there is Hindu Undivided Family, there is the scope for Joint Hindu Family Business.  


(2) Registration: It is not at all compulsory to register this organization because it is the result of Hindu Law.  


(3)) Membership: There are two types of members i.e Karta and Co-parceners. Karta is the elder male member of the family who controls and manages the business. The other family members are called as the co-parceners. There is no limit on membership because the membership is by birth.


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