Definition :
A Joint Hindu Family Business is a family concern that operate under the provisions of the Hindu Law and Hindu Succession Act 1956. It may be defined as a business organisation which is inherited or owned, conducted and managed by the members of a Hindu undivided family pointly under the direction and control of the senior most member of the family called karta for earning profits.
Features :
1. Formation : It is formed as per the Hindu law. Each member becomes coparcener by birth .
2. Karta and coparcener : The senior most member of joint Hindu Family becomes karta and other members coparcener.
3. Membership : The membership of Joint Hindu Family firm is unlimited
4. Management : Karta is only manager, controller and co-ordinator of the business managing it in the interest of coparceners.
5. Joint ownership : The property of Joint Hindu Business is jointly owned by the three generations after him.
