||Joint Hindu Family Firm
||Joint Stock Company|
||In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws.
||Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors.|
|(2) Number of Members
||Membership of the firm depends upon the birth and death in the family. There is no limit on membership.
||Private companyMinimum – 2 Maximum – 200 Public companyMinimum – 7 Maximum – No limit|
||Registration is not required
||Registration is compulsory.|
||Karta has unlimited liability and Co-parceners have limited liability.
||The liability of shareholders is limited upto the extent of unpaid amount on shares by them.|
||The whole of ancestral property used as capital.
||The company has huge capital.|
||Secrecy can be maintained within the family.
||Books of accounts have to be published. Business secrecy cannot be maintained.|
||Karta manages the business and he is assisted by coparceners.
||Board of Directors manages the Joint Stock company.|
|(8) Government Control
||There is limited government interference.
||There is strict government control.|
||Joint Hindu Family Firms are governed by the Hindu Succession Act, 1956.
||Joint Stock Companies are governed by Indian Companies Act, 2013.|
||It is comparatively easy to form.
||Formation of a Joint Stock Company is difficult, costly and timeconsuming.|
|(11) Legal Existence
||A Joint Hindu Family firm does not have a separate legal existence independent of its members.
||A Joint Stock Company has a separate legal existence. It is distinct from its members.|
|(12) Minor Member
||Minors can become a member of the firm.
||Minors cannot become a member of the company.|