By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: The Distinction between a Joint Hindu family business and partnership are as follows:-
Basis of comparison | Partnership | Joint Hindu family business |
Formation | Registration is optional, easy formation | Less legal formalities, exemption from registration, easy formation |
Members | Minimum-2 Maximum: 50 | At least two persons for division of family property, no maximum limit |
Capital contribution | Limited but more than that can be raised in case of sole proprietorship | Ancestral property |
Liability | Unlimited and joint | Unlimited (Karta), Limited (Other members) |
Control and management | Partners take decisions, consent of all partners is needed | Karta takes decisions |
Continuity | More stable but affected by the status of partners | Stable business, continues even if Karta dies |