"Advantages Of Joint Hindu Family Business In India"

                 A business, which continues from one generation tom another generation is known as joint Hindu family business or firm. This is special form of business organization, which now exists only in India. And the business is with in the family. The head of the family is the head of the business also. He is known as “karta” and the members are known as “co- parceners”. Joint Hindu Family is governed by the Mitaksara Law.

There are many advantages of the Joint Hindu Family Business In India. 

                                      Advantages of Joint Hindu Family Business are:

1. Easy formation
2. Quick decisions and prompt action
3. Flexibility in operation
4. Business Secrecy
5. Continuity of business
6. Minimum Government regulations
7. Limited liability of co-parceners

1. Easy formation: -Formation of Joint Hindu family is very easy. Because it does not require any legal formalities to form. It comes into existence under the Hindu succession Act 1956.

2 Quick decisions and prompt action: -The Karta is the sole manager of the business and head of the family. He need not consult any one before taking any decisions. Therefore he can take quick decisions and prompt actions

3. Flexibility in operation: -The management is in the hands of the Karta. He takes the decisions according to the changing circumstances. He can expand or contracts his business at his convenience. He enjoys maximum flexibility in operation.

4. Business Secrecy: -A joint Hindu family business can maintain business secrecy. Because they need not have to publish there’s any account to any outsider of the family.

5. Continuity of business: -Joint Hindu family business does not dissolve due to death of Karta. Because a minor members that is a co-parceners can become a karta after the death of the Head of the family

6. Minimum Government regulations: - Though the Hindu undivided Family is the result of Hindu Law, there is least Government control over Hindu undivided Family because the business are conducted by the family members itself so they no need to publish any accounts and reports to any outsiders.

7.  Limited liability of co-parceners: - The Co-parceners enjoy limited liability. The liability of the co-parceners is limited to the extent of the shares in the family business. However, the liability of the Karta is unlimited.