Type of partners in partnership
Active Partners
Active partners are those who are involved in the day-to-day operations of the business. They are responsible for making business decisions, managing employees, and handling finances. Active partners are also liable for the debts and obligations of the partnership firm.
Sleeping Partners:
Sleeping partners are those who invest in the business but are not involved in the day-to-day operations. They do not participate in decision making or have any management responsibilities. However, they are entitled to a share of the profits and losses of the partnership firm.
Nominal Partners:
Nominal partners are those who lend their name and reputation to the partnership firm. They do not contribute any capital or participate in the management of the business. Nominal partners are often used to lend credibility to a business or to satisfy legal requirements.
Partner by Estoppel:
A partner by estoppel is not actually a partner in the business but is held out to be one by the actions or statements of the other partners. This can occur when a non-partner is represented as a partner in business dealings, leading others to believe that they have authority to act on behalf of the partnership firm.
When registering your partnership firm, it's important to clearly define the roles and responsibilities of each type of partner in the partnership agreement. This will help avoid misunderstandings and disputes down the line. At [company name], we can help you draft a comprehensive partnership agreement and guide you through the partnership firm.
Fill the form and provide documents.
Sign and share the documents.
Follow-up and regular updates
