| Sr. No. | Basis of Comparison | Joint Hindu Firm | Sole Trading Concern |
| 1. | Meaning | The ancestral business which is continued and conducted by the members of a Hindu Undivided Family under the direction of the senior most member for earning profit is called Hindu Family Firm. | A business which is owned, managed and controlled by one individual called sole trader for earning profit is called sole trading concern. |
| 2. | Membership | The minimum or maximum number of coparceners is not regulated by Hindu Law. It changes with the number of births and deaths in the family. | Since, sole trading concern is owned and managed by a single person, there cannot be more than one member. |
| 3. | Ownership A | All the members of the Hindu Undivided Family are the owners of the ancestral business property | The business assets (properties) are entirely owned by the sole proprietor himself. |
| 4. | Liability | The liability of each coparcener is limited: however, the liability of the Karta is unlimited | The liability of a sole trader is unlimited. |
| 5. | Financial resources | The financial resources of a Hindu Family Firm are relatively more than that of sole trading concern. | The financial resources of sole trader are very limited in comparison to the Hindu Family Firm. |
