There are several types of partners in partnership firm. They are follows.
1. Active or Working Partners:
Partners who contribute capital and take an active part in the management of the business.
2. Sleeping Partners:
Partners who invest capital but do not take active part in the management of the business. Their liability is same as that of the active partners. They are also called ‘Dormant Partners’.
3. Nominal Partners:
Partners who neither contribute any capital, nor take active role in the management, but merely lend their famous name to the firm are called nominal partners. They are not entitled for any profits. But they are liable for the debts.
4. Secret Partners:
These partners stand in between active partners and sleeping partners. They take active part in the business, but they do not want outsiders to know that they are partners. They are liable for all debts.
5. Partners in profits only:
Partners who obtain a share of profits without taking part in the management of the business. They are not liable for losses, but are liable for all the debts of the firm.
6. Partner by Estoppel:
A partner who behaves in such a manner, that the third party takes him to be partner. He will be prevented or stopped from denying the role he has assumed. He does not contribute capital or shares profits. But he becomes liable for the third parties who grant credit, presuming that he is a partner.
7. Partner by holding out:
He is a partner, who is held out or represented to the public as a partner of the firm and who does not deny this fact that he is a partner even after knowing that his name is being used as a partner. He does not contribute capital or share profits. But he becomes liable to the third parties who extend credit, presuming that he is a partner.
8. In-coming Partner:
A partner who is newly admitted into a partnership.
9. Out-going or Retiring Partner:
A partner who seeks retirement with an agreement that others will continue the business. He is liable for all debts incurred before his retirement.
10. Limited Partner:
A partner with limited liability is a limited partner.
A partner who has retired from active participation, but he has left his capital in the firm is called a Quasi Partner. He is liable for all the debts.
12. Minor Partner:
A minor is actually incompetent to enter into partnership. But he can be admitted only for the benefits of the firm with the consent of all other partners. His liability is limited to his share of profits and assets in the firm.