Wherever there is a hindu undivided family, there is the scope of joint hindu family business. Huf is a separate entity for the purpose of assessment under the act. Each shareholder owns company stock in proportion, evidenced by their shares certificates of ownership. Recent questions in managing information technology. 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. Huf or hindu undivided familyis defined under the hindu lawas a family. Indian society is collectivistic and promotes social cohesion and interdependence. Essays and paragraphs, indian society on march 18, 2019 by h patra. Browse more topics under forms of business organisations. Read this article to get complete information on joint family system, its features, functions, other details family is one of the universal and permanent institutions of mankind. Essay on joint family system definitions, types and. According to the hindus, dharma includes not only what is known as law continue reading class notes on family law hindu law 1 unit i 1st sem. A joint family or undivided family is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many. A project on joint hindu family should be presented in the below mentioned manner.
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. A business cannot be partitioned by metes and bounds in the case of partition for conversion of the family business into partnership. Broad distinction can be made between two types of property viz. Essay on joint family system definitions, types and characteristics the joint family is also known as undivided family and sometimes as extended family. A hindu joint family setup is an extended family arrangement prevalent which has an enormous legal significance in india. What are the features of a joint hindu family business.
Give an example of joint hindu family business in india. You can include definition of a joint hindu family business, what kind of business is this. Some suggestions for family business planning, startups. Dec 29, 2011 give an example of joint hindu family business in india. 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. Joint hindu family firm is created by the operation of law.
There are many joint family businesses in india, but i dont know what is a joint hindu family business. Sep 22, 2016 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. Hindu undivided family is involved in a business, giving the ownership to head of the family. Jan 27, 2017 a joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. Joint hindu family business partnership business scribd. The hindu undivided family in independent indias corporate. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. It is one of the oldest forms of business organisation in the country. It is a specific type of organization that is restricted to certain parts of india. It does not have any separate and distinct legal entity from that of its members.
He is free to take any decision without any interference of any coparceners. Joint hindu family business, though it is an enlarged form of sole trading concern, it enjoys stability. What are the aims and objectives of a joint hindu family. The legal business which is carried by them known as joint hindu family business 18. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. The traditional indian joint family, which follows the same principles of collectivism, has proved itself to be an excellent resource for the care of the mentally ill. The joint hindu family business or the hindu undivided family huf is a unique type of business entity. He is the planner as well as the organiser, who coordinates every activity in an efficient. Form of business organization which is owned and run by members of hindu undivided family. 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.
It is governed and dictated by the hindu law, which is one of the several religious laws prevalent in india. There is no limit on membership because the membership is by birth. Forms of business organisation business environment 28 3. With a very small amount of capital one can start the business. Hindu undivided family is treated as a person under section 2 of the incometax act, 1961.
It is given due recognition by the income tax act, 1961, and by the joint hindu succession act, 1956, but it lacks legal status. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family. He is free to take any decision without any interference of any coparceners but he can take advice and help from the family members. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. A joint hindu family business is not created by any agreement or contract, because it exists only by operation of hindu law. Legal formalities are minimum just like formation, it is. Family control over the circuits of capital within the business group. The joint hindu family jhf business is a form of business organisation found only in india. The joint hindu family business is a distinct form of organisation peculiar to india. As a result we found different types of family all over the. The importance of joint family is understood by the indians since time immemorial. Before the industrial revolution, there was family business. Aug 06, 2015 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. Features of joint hindu family business india study channel.
This is a presentation that i had made on joint hindu family business hope people find it useful. Dharma according to hindu texts embraces everything in life. Of course the classic advice on this is not to mix business with family. I read somewhere that 62 percent of the gross national product of the western world is produced by family businesses. Before the multinational corporation, there was family business. The unity among its members is a great strength to face and remove any obstacles with sheer courage. Introduction a business enterprises is an organisation which is engaged in some business or commercial activity.
It comes into existence by the operation of hindu law. The business of joint hindu family is controlled under the hindu law instead of partnership act. Every business enterprises is a separate and distinct unit of business. It normally consists of members who at least belong to three generations. In every society and at every stage of development we found some sort of family. When all the members of a hindu undivided family run a business under the control and guide of karta the seniormost member of the family, such an association is joint hindu family business. In this form of business, all the members of a hindu undivided family own the business jointly. Advantages this system ensures a greater bonding between the members of the family.
It is the result of the hindu undivided family system followed in india. 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 head of the family has full responsibility of the management of joint hindu family business. It is governed and dictated by the hindu law, which is one of the several religious laws. The other family members are called as the coparceners. As per the latest income tax data released by the central board of direct. Various forms of business organisation from which one can choose the right one include. It basically refers to an extended family set up characteristic of the indians. Joint hindu family business, though is an enlarged form of sole trading concern but it enjoys stability. The eldermost, usually the male member is the head in the joint indian family system who. Joint hindu family an affectionate business collection of common seals of different joint stock companies and the relevant information about common seals visit a cooperative society, cooperative credit societies, patpedhies, consumer cooperative stores and prepare a report on such visits. A joint stock company is a business entity in which shares of the companys stock can be bought and sold by shareholders.
Joint stock company national institute of open schooling. The sole proprietorship form of business is the most simple and common in our country. Aug 22, 2010 karta is the elder male member of the family who controls and manages the business. By taking birth in a hindu family and falling under three successive generations one can be called member of huf.
Class notes on family lawhindu law 1 adv gr rajesh kumar. Karta is the eldest member ofthe family who controls all sorts. Aug 22, 2010 wherever, there is hindu undivided family, there is the scope of joint hindu family business. What is the procedure for partition of a family business. Joint hindu family business family marriage scribd. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. Joint hindu family business free download as word doc. Finally, the spirit of oneness prevails in a joint family system. A joint family or undivided family is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many generations living in the same household, all bound by the common relationship. It is made up of multiple family generations all of whom come together under one roof and bound by the same.
May 24, 2019 joint hindu family an affectionate business collection of common seals of different joint stock companies and the relevant information about common seals visit a cooperative society, cooperative credit societies, patpedhies, consumer cooperative stores and prepare a report on such visits. As the name suggests, it is type of organization in which all the members of hindu undivided family manage and control the business with the direction of head. Ive done business with my wife, daughter, soninlaw, and various mixtures of those. 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. Nevertheless, this type of business is losing its ground with the gradual decline in the joint hindu family. Shifting beps project, india has also ratified the. A sole proprietorship form of business is very easy to form.
Sep 16, 2012 family law hindu law unit i revision study notes for ll. The success of joint hindu family business is mostly dependent upon the efficiency of the karta and the mutual understanding between the coparceners. Hsc xii projects list commerce 12th std projects list. Nevertheless, this type of business is losing its ground with the gradual decline in the joint hindu family system. A joint stock company is an organization that falls between the definitions of a partnership and corporation in terms of shareholder liability. Disadvantages of joint hindu family business 1 limited. The joint family property is generally inherited from the male line of descent and consists of property that is jointly acquired or is acquired separately but merged into the joint property. Joint hindu family business an affectionate business. Without sharing the family business to external parties and using the family business profit for the well being of particular family. It does not arise out of the operation of law as in the case of joint hindu family. In sole proprietorship business, the proprietor has full control over each and every activity of the business. It is also helpful in times of crisis when everyone act as support pillar for. This article presents sociodemographic data on families in india aiming to provide bases for analyzing research, particularly in the area of family development.
It is given due recognition by the income tax act, 1961, and by the joint hindu. Importance of joint hindu family include 1 secrecy there is a lot of secrecy in jhf. Abstract literature on family studies in india has grown to a large extent in the last two decades, although such studies are scattered. Indias 10 oldest family owned businesses siliconindia. Its a system under which even extended members of a family like ones parents, children, the childrens spouses and their offspring, etc. Partnership is formed on the basis of an agreement between two or more persons to carry on business. Cbse class 11 business studies notes aglasem schools. 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. When joint hindu family carries on a particular business from one generation to another generation called as joint hindu family business. It often creates parasites who love to feed on others income. The karta in joint hindu family business has a limited liability b unlimited. Joint hindu family system authorstream presentation. Income derived from business operations carried out in.
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