| Basis of Difference | Joint Hindu Family Firm | Joint Stock Company |
| Governance | Governed by the Hindu laws | Governed by the Companies Act 1956 |
| Number of members | Minimum: 2 Maximum: No limit | In case of a private company: Minimum: 2 Maximum: 50 In case of a public company: Minimum: 7 Maximum: No limit |
| Minor | Minors can be members | Minors cannot be members |
| Management and Control | Managed and controlled by the Karta. | Managed and controlled by the managing director. |
| Liability | Karta has unlimited liability; other members enjoy limited liability. | Shareholders have limited liability to the extent of the unpaid amount on the shares held by them. |
| Formation | Easy to form, as few legal formalities need to be fulfilled. | Comparatively difficult to form, as several legal formalities need to be fulfilled. |
