The persons who sign the partnership agreement and invests capital to a partnership firm is called partner. he is the owner of the firm.
- Active partner
A partner who actively invest more in the business and participate in the daily management and operation of the firm. He takes the decision on behalf of all the partners. He plays an important role and take all the responsibility of the business and bears unlimited liability.
- Sleeping partner
The partners who have invested money but involve in business activity is called sleeping partner. He is also known as a dormant partner. Such partner contributes the capital, shares the profit or loss, and ha unlimited liability.
- Nominal partner
A partner without any role in the partnership isa called nominal partner. It doesn't bear any risk or loss of busines. He lends his name and credit to the firm for its benifit. The person with public image can be invited as a nominal partner for the credibility and reputation of the firm.
- Quasi partner
A quasi partner is one who doesnot contribute to the capital but lends money as loan to the firm. This partner is neither liable for business activity nor has right over the profit of business after retirement.
- Limited partner
The partner whose liability is limited to his investment only is called limited liability. A limited partner is also known as special partner. Such partner can not actively participate in the management of the firm.A partner do not pay the firm's debt from his private property.
- Minor partner
A partner who is below the age of sixteen is called as minor partner. The liability of the minor partner is limited. He cannot take an active part in the management, but can check the books of the accounts of the firm.
The partner who shares the profit of business with other partners is called sub-partners. This is made with mutual agreement understanding with other partners. There profits and loss of business are share by sub-partners according to agreements made internally by partners.
- Incoming partner
The partner who is newly admitted to an existing partnership firm are incoming partners. The incoming partner brings in cetain extra amount over and above his share of capital for the goodwill of the firm. The agreement between existence partners is required to enter a new partner.
- Outgoing partner
An outgoing partner is one who retires from the firm. He is responsible for all the activities and liabilities of the firm before his retirement. The firm has to pay the share of capital with the share of profit to the retiring partner. The outgoing partner is not liable for future liabilities of the partnership.
Holding out - estoppel partner
The partner who represents himself as a partner but does not invest money in business is called holding out or estoppel partners. He is not a true partner. such partner is liable to outsiders for the debts of the firm.
- Secret partners
A partner who does not want to disclose his name as a partner of the firm. He provides all necessary helps assistant to business indirectly. Such a partner contributes capital, takes an active part in the management, and shares the profit or loss without exposing himself as partner of the firm.