What are the conditions for joint Hindu family business?

There should be at least two male members in the family to form a HUF. Ancestral property should have been inherited by members of HUF. All of the members enjoy this property and have an equal share in that property.

What are the limitations of joint Hindu family business?

Mention the limitations of Joint Hindu Family Business

  • Limited resources : The main source of capital under this kind of business is the ancestral property. …
  • Unlimited liability of Karta : The liability of the Karta is unlimited. …
  • Dominance of Karta : The entire control and management of the business lies with the Karta.

What is the minimum number of members required for a joint Hindu family business?

Minimum members should be 2 and maximum 10 for banking and 20 for others. At least two persons for division of family property with no maximum limit of members. Limited but more than that can be raised in case of sole proprietorship. The capital contribution comes from ancestral property.

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What are the merits of joint Hindu family business?

Advantages of Joint Hindu Family Business are:

  • Easy formation.
  • Quick decisions and prompt action.
  • Flexibility in operation.
  • Business Secrecy.
  • Continuity of business.
  • Minimum Government regulations.
  • Limited liability of co-parceners.

What is the main cause of decline in joint Hindu family business?

Conflict or family quarrel has caused the breakdown of joint family system. Conflicts regarding family property, its income and expenditure, unequal distribution of work at home and personal clashes between women lead to the break-up of joint families.

What is joint Hindu family business explain its merits and demerits?

Easy to Start: -Joint Hindu Family business is very easy to form. It comes into existence as per Hindu law. Family members become co-parceners in the firm by virtue of their birth in the family. Moreover no registration is required for a Joint Hindu Family firm respect of minimum or maximum members.

What are unique qualities of Hindu joint family?

Joint family has the following features or characteristics.

  • (1) Large in Size:
  • (2) Joint Property:
  • (3) Common Kitchen:
  • (4) Common Residence:
  • (5) Common Worship:
  • (6) Similar rights and obligations:
  • (7) Close blood ties:
  • (8) Absolute power of the head:

Which of the following is not a feature of joint Hindu family business?

The youngest member of the family is Karta is not the characteristic of Joint Hindu Family Business. Explanation: The ‘Joint Hindu family business’ is very popular in India. It is ruled by the ‘provisions of the ‘Hindu Law’.

What is Coparcenary under Hindu law?

A Hindu joint family consists of lineal descendants of a common ancestor. In other words, a male head and his descendants, including their wives and unmarried daughters. … In other words, a coparcenary has succession up to four degrees of lineal descent.

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Can a minor become the member of a joint Hindu family business?

A minor becomes a member of Joint Hindu Family Business by virtue of his birth. … Hence, minors can also be members of the business. On the other hand, in a partnership firm, the minor cannot be a partner of a business. In the partnership firm, the age of the partners should be above 18 years.

What happens to joint Hindu family business if Karta or any other member dies?

The business continues to run in case of death of Karta or any other member of the family. … The business can, however, be terminated with the mutual consent of the members on their declaration that they are no longer a part of Joint Hindu family business.

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