| Joint Hindu Family Firm | Joint Stock Company |
| (1) Meaning | In Joint Hindu Family Firm, the Joint Hindu Family conducts business according to Hindu Laws. | Joint Stock Company is an incorporated association created by law, having an independent legal status, owned by shareholders and managed by Board of Directors. |
| (2) Number of Members | Membership of the firm depends upon the birth and death in the family. There is no limit on membership. | Private companyMinimum – 2 Maximum – 200 Public companyMinimum – 7 Maximum – No limit |
| (3) Registration | Registration is not required | Registration is compulsory. |
| (4) Liability | Karta has unlimited liability and Co-parceners have limited liability. | The liability of shareholders is limited upto the extent of unpaid amount on shares by them. |
| (5) Capital | The whole of ancestral property used as capital. | The company has huge capital. |
| (6) Secrecy | Secrecy can be maintained within the family. | Books of accounts have to be published. Business secrecy cannot be maintained. |
| (7) Management | Karta manages the business and he is assisted by coparceners. | Board of Directors manages the Joint Stock company. |
| (8) Government Control | There is limited government interference. | There is strict government control. |
| (9) Act | Joint Hindu Family Firms are governed by the Hindu Succession Act, 1956. | Joint Stock Companies are governed by Indian Companies Act, 2013. |
| (10) Formation | It is comparatively easy to form. | Formation of a Joint Stock Company is difficult, costly and timeconsuming. |
| (11) Legal Existence | A Joint Hindu Family firm does not have a separate legal existence independent of its members. | A Joint Stock Company has a separate legal existence. It is distinct from its members. |
| (12) Minor Member | Minors can become a member of the firm. | Minors cannot become a member of the company. |
