Sleeping partner

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2013 what is the difference between sleeping partner & nominal partner.

Hemant Kumar

Hemant Kumar (Expert)

11 September 2013 Sleeping or Dormant Partner:

A sleeping or dormant partner is one who does not take any active part in the management of the business. He contributes capital and shares the profits which is usually less than that of the active partners. He is liable for all the de of the firm but his relationship with the firm is not disclosed to the general public.

Nominal Partner:

A partner who simply lends his name to the firm is called nominal partner. He neither contributes any capital nor shares in the profits or take part the management of the business. But he is liable to third parties like other partners. A nominal partner must be distinguished from the sleeping partner. While the nominal partner is known to the outsiders and does not share in the profits, the sleeping partner shares in the profit a his relationship is kept secret.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2013 a sleeping partner can get the salary

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now