Q.How does a person become a coparcener in a Joint Hindu Family Business?
(A) By signing a partnership agreement
(B) By purchasing shares in the business
(C) By birth into the Hindu Undivided Family
(D) By registration with the Registrar of Firms

A Joint Hindu Family (JHF) business is a form found only in India and one of its oldest. It is owned and carried on by the members of a Hindu Undivided Family (HUF), governed by Hindu Law, with membership acquired simply by birth into the family — up to three successive generations. The eldest member, the karta, controls and manages the business, while all members (co-parceners) share equal ownership of the ancestral property.

Key features:

• Formation needs at least two members and inherited ancestral property; no agreement is required since membership comes by birth.
• Liability is limited for all members to their share, except the karta, whose liability is unlimited.
• Control rests with the karta, whose decisions bind the others.
• Continuity is stable — on the karta's death the next eldest member takes over. Even minors are members by birth. …