A joint family system could be created by a family of friends. Characteristics of joint family system in india 1051 words. Even within india its existence is restricted to only certain parts of the country. Introduction it is a presumption that every hindu family is joint family, they cannot escape from the joint family. 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. Hindu family is joint family when it is joint in food, worship and estate. This article provides information about the characteristics of joint family system in india. Joint hindu family business is a distinct type of organisation which is unique to india. Forming a joint hindu family business is extremely easy, as no legal formalities are required to be fulfilled. Besides this, you can include features, merits and limitations of joint hindu family business. No country % of fbs gnp 1 brazil 90% 63% 2 chile 75% 5070% 3 usa 96% 40% 4 belgium 70% 55% 5 finland 80% 40 50%. There is no right in a minor or an adult member of the family to bring a. 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. Madhu bhatia, tutorials point india private limited.
With a very small amount of capital one can start the business. 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. Compare the status of a minor in a joint hindu family. The joint hindu family jhf business is a form of business organisation run by hindu undivided family huf, where in the family members of.
In the revived model, the families coming together may or may not belong to the same parent family. The joint family is very important and has a very significant gesture to the indians which is why many families prefer to hold such methods of coexistence. Hindu joint family under mitakshara law the hindu joint family is a normal condition of the hindu society. In this form of business ownership, all members of a hindu undivided family do business jointly under the control of the head of the family who is known as the karta. A sole proprietorship form of business is very easy to form. A literature study on family business management from 1990 to. A hindu joint family or hindu undivided family huf or a joint family is an extended family arrangement prevalent among hindus of the indian subcontinent, consisting of many generations living under the same roof. By definition, a family business is one in which the majority of the stake is held. Whatever be the school of hindu law by which a person is governed, the basic concept of a hindu undivided family in the sense of who can be its members is just the same. In joint hindu family business, only manager has the implied authority.
A hindu joint family consists of all the male members descended lineally from a common male ancestor together with their mothers, wives or widows and unmarried daughters 1. When the inclusion of an individual into the business occurs due to the birth in the hindu undivided family huf is known as minor. It is a specific type of organization that is restricted to certain parts of india. The sole proprietorship form of business is the most simple and common in our country. On the other hand, partnership is based on legal contract between two persons who agree to share the profits or losses of a business carried on by them and a minor is incompetent to enter into such a valid contract with others. Class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. Before the industrial revolution, there was family business. It refers to a form of business organization which is owned and carried on jointly by the members of the hindu undivided. In this form of business ownership, all members of a hindu undivided family do business jointly under the. Features merits introduction limitations examples 3. Family businesses, business case studies, entrepreneurship.
Such an assumption has been encouraged by the study of hindu law and scriptures where the normative hindu family is always joint. The eldest male member of the joint family is the karta, who is responsible for managing and controlling the business operations. 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. What are the features of a joint hindu family business. I read somewhere that 62 percent of the gross national product of the western world is produced by family businesses. Db corp bhaskar group p8steady globalisation despite challenges p10the numbers game.
Before the multinational corporation, there was family business. Income derived from business operations carried out in. Hindu undivided family is involved in a business, giving the ownership to head of the family. Pwcs family business survey 2012 what the future holds. A literature study on family business management from 1990 to 2012. Of course the classic advice on this is not to mix business with family. The joint hindu family firm is the next noncorporate, group ownership form of family business operative in india. The traditional assumption behind such a deduction is that every hindu family is normally a joint family. Dec 29, 2011 give an example of joint hindu family business in india. 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 hindu undivided family huf is treated as a person under section 231 of the incometax act, 1961 herein after referred to as the act. Basic information 1 2 name of hindu joint family as registered with lhdnm.
When joint hindu family carries on a particular business from one generation to another generation called as joint hindu family business. It is one of the oldest forms of business organisation in the country. Features of joint hindu family business definition. The fundamental concept of such a hindu joint family where there is a common male ancestor with his lineal descendants in the male line. Others members of the family are known as coparceners, who become the member of the business right at the time of their birth. Indias 10 oldest family owned businesses siliconindia. Joint hindu family business class 11 linkedin slideshare. All business affairs are dealt with by the senior most male member of the hindu family. Rut they deal only with a norm and not the reality. A hindu joint family means what in any system of law prevailing in india is known as a hindu joint family or coparcenary. Study of your project now, for depth knowledge of this business, you can visit a joint hindu family business.
Give an example of joint hindu family business in india. Legal formalities are minimum just like formation, it is. Basically, there are two kinds of members in a joint hindu family business, i. Jan 20, 2018 joint hindu family business class 11 1. Free ncert solutions for 11th class business studies forms of.
Joint family helps foster love within a family so that people can be closer to each other for the good of the family. A business cannot be partitioned by metes and bounds in the case of partition for conversion of the family business into partnership. Joint hindu family an affectionate business project business studies business environment. What is the procedure for partition of a family business. Joint hindu family business is the oldest and specific form of business organization found only in india. Some suggestions for family business planning, startups. Thus, in order to constitute a joint family, it is not always necessary that there must be two male members. Objective of your study explicitly state the objective of your study 3. Karta and his legal position in joint hindu family. In joint hindu family business, there is no restriction on the maximum number of members. A joint hindu family business is not dissolved on the death, lunacy or insolvency of any of the copartners. Joint hindu family business definition, examples, diagrams toppr.
The supreme court in appasaheb peerappa chandgade vs devendra peerappa chandgade has ruled on the presumption regarding joint family property under the hindu law. A literature study on family business management from. When a joint hindu family hindu undivided family conducts business inherited by it as per hindu law, it is called joint hindu family firm. Procedure to start joint hindu family business advantages. Get your team aligned with all the tools you need on one secure, reliable video platform. Apr 06, 2017 when the inclusion of an individual into the business occurs due to the birth in the hindu undivided family huf is known as minor. Minimum members should be 2 and maximum 10 for banking and 20 for others. Indian family businesses in 2017 p4confident in the short term p6case example. Joint hindu family an affectionate business project. Why is joint hindu family business established in india. Distinguish between a joint hindu family business and. The basic concept of the joint family system is that more than one family come together under one roof and lead a life of mutual cooperation and interdependence. Chapter 4, joint hindu family business and cooperative society. Panikkar has rightly observed, the caste system, the village community and the joint family system constitute the basic pillars of the indian social system.
It is a specific form of business organization found only in india. In a joint hindu family business no member of the family can say that he is the owner of one half, onethird or one fourth. There are many joint family businesses in india, but i dont know what is a joint hindu family business. Ive done business with my wife, daughter, soninlaw, and various mixtures of those. The manager of the hindu joint family or karta is required to declare all sources of income in form tj. Dec 29, 2017 class 11 cbserbse joint stock company in hindi meaning, features, merits and limitations duration. When a business enterprise is run by the family member and they run the business as family business is called joint hindu family business. Joint hindu family business is a different type of organization, which is found only in india. All the male members are blood relatives and all the women are either mothers, wives, unmarried daughters, or widowed relatives. There is always a lack of motivation among the members to work hard. Joint hindu family business has generally limited financial and managerial resource. Historically, for generations india had a prevailing tradition of the joint hindu family or undivided family.
A joint family or undivided family is an extended family arrangement prevalent throughout the indian subcontinent, particularly in india, consisting of many. Easy formation with less legal formalities than partnership. It also helps foster unity as living together means that they have to work together with the goal of a sustainable coexistence. Shifting beps project, india has also ratified the. Disadvantages of joint hindu family business 1 limited. The joint family is the bedrock on which hindu social organization is built. Mind your own business video 8 this video will cover all the topics related to. Free ncert solutions for 11th class business studies forms. Do family businesses score over nonfamily businesses. The joint hindu family business or the hindu undivided family huf is a unique form of business organisation found only in india. Therefore, it cannot undertake big and risky business.
The supreme court after considering various precedents on the subject, held that there is no presumption of joint family property, and whoever alleges the existence of the same must prove it through evidence. It is one of the oldest forms of business organization in the country. Forms of business organization joint hindu family business. 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. Sep 01, 20 joint hindu family business is a distinct type of organisation which is unique to india.
You can ask them about the number of members in the business. The hindu joint family is the normal condition of the hindu society. A social study of the benefits of the joint family system. Its origin can be traced to the ancient partriarchal system where the patriarch or the head of the family was the unquestioned ruler, laying down norms for the members of his family to follow. Do you need an answer to a question different from the above. Mallappa mahalingappa, the supreme court while pointing out the distinction between the joint family business and partnership firm observed.