Joint Hindu Family Form

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The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF), where the family members of three successive generations own the business jointly.

  • Head of the family known as Karta manages the business.

  • Other members are called co-parceners

  • All of them have equal ownership right over the properties of the business.

  • Membership of the JHF is acquired by virtue of birth in the same family.

Characteristics of JHF Form

Characteristics of JHF form

Characteristics of JHF Form

Characteristics of JHF form

Advantages of JHF Form

  • Assured shares in profits

  • Quick decision

  • Sharing of knowledge and experience

  • Unlimited liability of the karta

  • Limited liability of members

  • Continued existence

  • Tax benefits

Disadvantages of JHF Form

  • Limited resources

  • Lack of motivation

  • Scope for misuse of power

  • Instability

Suitability of JHF Form

JHF Form is suitable where:

  • Family inherits a running business and members of the family want to continue that business jointly as a family business.

  • Business requires limited financial and managerial resources and having a very limited area of operation.

Formation of JHF Form

  • Formed as per the provision of Hindu law.

  • Comes into existence on the death of the person who established the business.

  • His successor automatically becomes the coparceners if they decide to continue it.

  • No legal formalities are required for its establishment.

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