What Are the Differences Between a Partnership and Joint Hindu Family Business?
India has its own business culture and legacy of doing business, which is still prevalent from many centuries. Such old business models are not only successful in the country but also considered safe and stable business models. Joint Hindu Family Business is one-of-a-kind and one of the oldest business modelsmostly found in India. It is one of the classical business models run and administered by the Hindu Law. Apart from this, there are different business entities in India like Public Limited Company, Private Limited Company, Joint-Venture Company, Non-Government Organization (NGO) and Partnership Firm, etc. Each business entity has its unique business model and works according to it. Although, this post aims to highlight differences between a Partnership Firm and Joint Hindu Family Business.
Notable Differences Between a Partnership Business and Joint Hindu Family Business
Formation:- Partnership Business comes into existence by mutual contact among the partners.
- Joint Hindu Family Business comes into existence, according to the law.
- In Partnership Business, a new member joins the business by an agreement.
- In Joint Hindu Family Business, one becomes a member by birth.
- A minor is not allowed to become a partner in a partnership business.
- In Joint Hindu Family Business, minors can be partners in business.
- Registration of Partnership Business or Firm is not compulsory. But to deal with legal complexities in the future, registration is advisable.
- In Joint Hindu Family Business, registration of the business is not required.
- In a partnership business,the maximum number of members can be 20.
- In Joint Hindu Family Business, there is no restriction on the number of members.
To know more about partnership firm registration services or any other kinds of registration services related to the businesses in India, please contact to prestigious law firm of Delhi at: +91-8800-100-284 or Mail at Contact@Company-Registration.in
Posted by Anita Aswal - 6th April 21