The main features of Joint Hindu Family Business are as follows:
1. Join ownership: The business is jointly owned by all the menebers of a joint hindu family. the sucessive generation inherit the business or property due to their birth in Hindu Family. Every child9 Even female in certain states like Maharastra) born in Joint Hindu Family become co-parcener by reason of his/her Birth.
2. Minimum Governemet Regulation: This type of business is subject to least government regulations. there are least legal formalities.The kata can start a new business or close down the existing one without much legal formalities.
3. Limited Liability of Co-parceners: The joint owners i.e the co-parceners' leability is limited to the extent of their share in the family business.
4. Unlimited Liabilty of Karta: The liabilty of the karta is unlimited.
This is beacause:-
* He has total authority to take descions.
* He has complete control over business activity.
* He is the leader or Head of the Joint Hindu Family.
* He is the top manager in the organisation.
* He is liable to pay the dues out of his personal assets, if the situation so demands.
5. The question is Unlimited liabilty arises only when the property of the family business. However, If the co-parceners do not approve activities of the karta, they may demand partition of family property.
6. Membership: There is no maximum limit to membership in a joint Hindu family business. tHE MEMBERSHIP DEPENDS UPON THE BIRTHS AND DEATHS IN THE FAMILY.
7. Limited Capital: This type of business is subject to limitation of capital. The capital raised is from saving of the family members. The karat may also obtain funds fro friends and may also take loans from the banks, but limited amounts.
8. Business Dominated by male memebrs: This type of business is dominated by male members of the family. Female members do not normallyu take part in the joint Hindu Family Business.
9. Business secrecy: There is a great deal of business secrecy. This is becasue the joint Hindu family business need to publish accounts and other data. The competitors cannot easily obtain the information and secret of Joint Hindu Family Business.
10. Local Area Coverage: Normally, Joint Hindu family business is confined to a limited local area. This is because of limited capital and the limited nature of the businss.
11. Flexibility in Operation: This type of business offers a good deal of flexibility in business operations. The karta can expand the business, change the line of business, or even can close down the business, if the situation so demands. The co-parceners normally agree with karta in business decision.
12. Limited Growth
13. Limited Interest of co-parceners.
14. Family Disputes
19. Problem of Distribution of profits.