Partnership Firm Joint Hindu Family Firm

Sr.
No.
Basis of Difference

Partnership Firm

Joint Hindu Family Firm

1.


Meaning
In this form of business organization two or more persons come together to undertake a business activity and share profits.
It is a form of commercial organization. The ancestral (family) business is conducted by the family members of Joint Hindu Family. is created by the operation of Hindu Law.

2.

Creation
Partnership firm emerges out of contract between the partners.
Joint Hindu Family firm is created by the operation of Hindu Law.

3.

Membership
There can be a minimum of 2 partners and a maximum of 10 partners in banking business and 20 in non-banking business.
There is no maximum limit on membership. Membership keeps on changing depends upon the birth and death in the family.

4.

Management
All partners in partnership have equal managerial rights. The business is jointly managed by all the partners.
Karta is the key manager of business who may be assisted by co-parceners to a limited extent.

5.
Minor members
A minor member can be admitted to the benefits of partnership with the consent of all the partners.
A male minor becomes a member merely by his birth.

6.

Regulating Law
It is governed by the Indian Partnership Act, 1932.
It is governed by the Hindu Law.

7.
Liability of Members
The liability of all the partners is unlimited.
Only Karta’s liability is unlimited, co-parcener’s liability is limited.