Difference between joint hindu family and partnership.
1. Regulating law:
A partnership is governed by the provisions of the Indian Partnership Act, 1932. A joint Hindu family business is governed by the principles of Hindu law.
2. Mode of creation:
A partnership arises out of a contract, whereas a joint Hindu family business arises by the operation of law and is not the result of a contract.
3. Admission of new members:
In a partnership no new partner is admitted without the consent of all the partners, while in the case of a joint Hindu family firm a new member is admitted just by birth.
4. The position of females:
In a partnership women can be full-fledged partners, while in a joint Hindu family business membership is restricted to male members only. After the passage of the Hindu Succession Act, 1956, females get only co-sharer’s interest at the death of a coparcener and they do not become coparceners themselves.
5. Number of members:
In partnership the maximum limit of partners is 10 for banking business and 20 for any other business but there is no such maximum limit of members in the case of joint Hindu family business.
