Distinguish between a Joint Hindu Family business and partnership

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formsoforganisations

#1

The differences between Joint Hindu Family business and partnership are as follows
Joint Hindu Family Business:
1.Minimum two members are required to start the business and there is no maximum limit in Hindu
Undivided Family business.
2.The liability of Karta is unlimited while that of other members is limited to the extent of their share of co-parcenary property of business.
3.Hindu Succession Act, 1956 governs the functioning of Joint Hindu Undivided Family business.
4.The business is managed and controlled by Karta.
5.Death of Karta doesn’t affect the continuity of business. The next senior member of family becomes Karta.
Partnership:
1.Minimum two members are required to start the business while the maximum number of partners should not exceed twenty (ten in case of banking business).
2.The partners have unlimited liability.
3.The Partnership Act, 1932 governs the functioning of partnership firms.
4.The business is managed and controlled by all the partners.
5.The working of the business comes to an end by the death, insolvency, insanity of any partner.