There can be 8 types of partners. They are differentiated in the table below for better understanding. If you have formed a partnership and want it to be registered then you can register it from our online partnership registration service by providing us your details and required documents here.

Basis Capital contribution

Profit sharing

Liability

Management participation

Special feature

Active or working partner

Yes Share in Profits or losses Unlimited Yes

Known to outsiders.Full-fledged partner

 

Sleeping or dormant partner

Yes Share in Profits or losses Unlimited No Unknown to the outside world and Inactive partner

Secret partner

Yes Share in Profits or losses Unlimited Yes but secretly Secret/hidden connection with the firm

Limited partner

Yes Share in Profits or losses Limited No Death,lunacy or insolvency does not effect the firm

Partner in profits only

Yes Share only in the profits. Unlimited No Firm uses his money or goodwill.

Nominal or ostensible or quasi partner

No No share in profits or losses Unlimited No

Lends his name or reputation to the firmAllows himself to be represented as a partner.There can be types of partners under nominal type.

 

Minor as a partner

No Share only in the profits. Limited Yes

A minor cannot become a partner because he is not qualified to enter into a contract. But he may be admitted to the benefits of partnership with the mutual consent of all the partners.

 

Sub partner

No Share only in the profits. No liability No

A third person with whom a partner agrees to share his profits.

 

Types of Nominal partners –
(a) Partner by estoppels:
A person becomes a partner by estoppel of a firm by his written or oral words if he used such words to represent himself as the partner of the firm to enter into an transaction. He becomes liable for his such representation to whom he have entered transaction with as the partner of the firm.
(b) Partner by holding out:
A person becomes a partner by holding out of a firm if, he being represented as a partner of the firm in his presence do not deny it.