Active partner :An active partner is involved in the day-to-day business operations

Dormant partner: A dormant partner is not involved in the day-to-day operations

Nominal partner: Such a partner neither invests money nor takes active participation in the business. Nominal partners are simply the face of the company to add goodwill to the firm.

Partner by estoppel (holding out): When a person either verbally or in written form tells a client he/she is a partner and receives credit or some other favour, he/she will be legally considered as a partner by estoppel.

Sub-partner: When a partner shares his/her profit with a person outside the firm, the latter becomes a sub-partner.

Minor partner: A partner who is less than 18 years of age is called a minor partner. He or she can not file any legal suit against other partners.

Partner in profit only: Partner in profit becomes a partner with the agreement of all partners that he/she will not be liable to losses of the firm.

Secret partner: A secret partner invests money in the business and has a say in the day-to-day operations. However, he/she keeps their identity a secret and doesn’t want anyone to know of their association with the firm.

Basic details:This part includes information like the names of the partners, and their personal information such as addresses, phone numbers, etc. It should also mention the type of partnership and what kind of business they are going to run.

Longevity of the partnership : All the partners are advised to decide how long they want to carry out the partnership and mention those details in the partnership deed. If it’s not mentioned in the deed, it will become a partnership at will.

Place of business : The specific location of the business from where all the operations would be conducted should be mentioned.

Bringing new partners : All the partners should be on the same page regarding the rules for bringing a new partner, his or her role in the company, and conditions for bringing a new partner such as their salary and liabilities, etc.

Roles and responsibilities : It is important to lay down the responsibilities of each partner in the firm so that there is no confusion later on.

Capital infusion : The deed should mention how much capital each partner will invest in the company. This should not be limited to only money, but also mention if a partner is providing personal office space or any other asset that can be used for running the business.

Profit sharing : Details of how the profit will be shared among the partners form an important element of the partnership deed.

Taking loans : The partnership deed should have proper guidelines for taking a loan from a bank or any other financial institution. The rules should be explicit about the liabilities of each partner.

Leaving the firm : This includes the terms and conditions for voluntarily leaving the partnership firm. This should mention details such as the notice time, partner’s liabilities after leaving the firm, re-arrangement of profit-share after leaving the firm, etc.