Types of partners a firm can have and their duties and roles are explained below.
1. Active partner:

• According to Partnership Act, a person who becomes a partner in the firm through partnership deed, invests capital in the firm, shares profit and loss, and works actively in managing the business is called an active partner.
• The active partner is considered as the agent of the firm for the purpose of business activities of the firm.

2. Sleeping/Dormant partner:

• A person who becomes the partner in the firm through partnership deed invests capital, bears loss of profit but does not play an active role in managing the business is called a sleeping or dormant partner. Just like the active partners, the liability of the sleeping partner is also unlimited.
• People who wish to have capital and cannot raise on their own often invites people to join the firm as sleeping partner.

3. Nominal partner:

• Sometimes a business firm aspires to grow quickly in the fast growing competitive market. The firm members then approach such a person who holds a strong influence and reputation in the market to become a partner in their firm. Such a partner neither invests capital nor plays an active role in the management but allows the partnership firm to use his name and influence for credibility, growth and expansion. Such a partner is called a nominal partner.
• The nominal partner gets a fees for this service and like other partners has unlimited liability.

4. Partner in profit only:

A partner who shares only the profits without being liable for the losses is known as partner in profit only.
Such a person is made a partner only to take advantage of his special skills, knowledge and rich experience. Such partner may or may not invest his capital in the firm.

5. Partner by estopple or holding out:

• A person who does not signs the partnership deed, does not bring capital and does not share the profit or loss in the firm but permits himself to be represented as a partner and behaves as a partner is called a partner by holding out or estopple partner.
• When a third party due to goodwill of such person (estopple partner) believes that the person sitting in the firm is a partner and transacts with the firm then the – liability of that partner becomes unlimited too.

6. Minor partner:

• According to the Partnership Act only an adult can sign a partnership deed and become a partner. However, at times the partnership firm for its own benefit can make a minor a temporary partner of the firm. For example , if a partner dies his child can be made a minor partner.
• Such minor partner has the right to share the profit of the firm but does not have liability to pay for the business loss. Creditors cannot claim to recover loss from the assets of minor partner.
• When the minor partner becomes adult he can become the partner of the firm if he desires to.