Q: What are the types of partner in partnership firm ?

Ans: The member of a partnership is called partners and it is not mandatory that all the partners are the same or all the partners participate in the conduct of the business or share the profit or losses equally. The partners are classified depending on the nature of work, the extent of liability, etc. There are basically six types of partner:

1. Active/managing partner: The partner who takes participation in the conduct of the business daily is known as active partner. This active  partner is also called an ostensible partner.

2. Sleeping/Dormant: The Sleeping or dormant partner does not participate in the conduct of the business but he is bound by the conduct of all the partners.

3. Nominal partner: The nominal partner  is a partner to the firm only by his name. In reality, the nominal partner has no significant or real interest in the firm.

4. Partner in profit only: The partner who agrees to share the profit but does not suffer losses. Such partner will not be liable for any liabilities in case of dealing with the third party.

5. Minor partner: A minor  person cannot be a partner in accordance with the Indian Contract Act, but he can be admitted in partnership firm to get the benefit of all the partners by giving his consent. His will share the profit equally but his liability will be limited in case of loss of the firm.

6. Partner by estoppel: The partner by estoppel means when the person is not a partner in partnership firm but he has represented himself by conduct, or words to another person to be the partner then he cannot deny afterwards that he is a partner in that firm. Even if he is not a partner but he becomes the partner by holding out or by estoppel.