Joint Hindu Family Business
In Hindu religion, Joint family business, a particular form of business organization found only in India which is considered as one of the oldest form of business organization in the country. It refers to the kind of organization in which the business is owned and run by the members of the Hindu Undivided Family (HUF). It is bound by the Hindu Law. The origin of membership in the business is birth in a particular family and falling under three successive generations who can be nominated as members in the business. The business is under the control of the head of the family who is the eldest member named karta. All members are entitled for equal ownership right over the property of an ancestor and they are known as co-parceners.
The family business is of two types: Dayabhaga and Mitakashara Systems. Dayabhaga system that exists in West Bengal allows both the male and female members of the family to be co-parceners. On the other hand, the Mitakashara system, exists all over India except West Bengal and allows merely the male members to be co-parceners in the business.