Partnership Firm - Types of Partners

1. Active Partner:

• Manages daily operations.
• Contributes capital, shares profit/loss.
• Has unlimited liability.
• Example: Rahul manages the firm's operations.

2. Dormant Partner:

• Only invests and shares profit/loss.
• Doesn’t manage or represent the firm.
• Has liability.
• Example: Priya invests but doesn't work daily.

3. Nominal Partner:

• Lends name only.
• No capital or profit share.
• Liable due to public assumption.
• Example: Amit’s name is used for reputation.

4. Secret Partner:

• Not known publicly.
• Invests, shares profit, and manages.
• Has unlimited liability.
• Example: Rina works and invests secretly.

5. Minor as Partner:

• Under 18, can’t contract.
• Can share profits with consent.
• No personal liability.
• Example: Ansh, age 17, shares profits with consent.

6. Partner in Profits Only

• Shares profits, not losses.
• May not manage.
• Liable for firm debts.
• Manav only receives profit, not losses.

7. Sub-Partner:

• Shares its profit with outsiders.
• Not a legal partner in the firm.
• Example: Sneha gets a part of Amit’s profit share.

8. Partner with Limited Liability

• Liability limited to investment.
• Usually inactive in management.
• Example: Raj invests ₹50,000, liable up to this amount only.

9. Quasi Partner:

• Retired, leaves capital in the firm.
• Shares profit or interest.
• No management role, still liable.
• Example: Sanjay retired but earns interest on the capital left.