{"id":19870,"date":"2021-05-17T12:11:02","date_gmt":"2021-05-17T12:11:02","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=15216"},"modified":"2022-07-06T06:54:30","modified_gmt":"2022-07-06T06:54:30","slug":"what-are-the-pros-and-cons-of-starting-a-huf-business","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/what-are-the-pros-and-cons-of-starting-a-huf-business\/","title":{"rendered":"What Are the Pros and Cons of Starting a HUF Business?"},"content":{"rendered":"\n

A Hindu Undivided Family business is a form of business unique to India and operated by the provisions of the Hindu Law Succession Act. The head of the HUF, called Karta,<\/em> is responsible for managing the business. Typically, the eldest male member of the family is Karta, <\/em>while the rest are known as co-parceners.<\/p>\n\n\n\n

How to start a HUF business?<\/strong><\/h2>\n\n\n\n

Any Hindu joint family can start a HUF by executing a deed, opening a bank account, and getting a separate PAN in the HUF’s name. These steps will establish the HUF as a separate entity.<\/p>\n\n\n\n

Next, members need to form a corpus for the HUF \u2013 belonging to the entire family \u2013 using inherited capital assets or those received under a will, ancestral property, jewellery, deposits, even cash. Once the HUF is established, the members can use this corpus to start a business. <\/p>\n\n\n\n

In such a case, the business started as a HUF, like any other business entity, will be liable to pay taxes for the total income earned. The business also enjoys the same tax benefits as any other individual taxpayer.<\/p>\n\n\n\n

Additional Read:<\/strong> Tax Benefits on Business Loan<\/a><\/p>\n\n\n\n

Advantages of starting a business as a HUF<\/strong><\/h2>\n\n\n\n