3 Replies
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 19 August 2020
A nominal partner is one who allows the use of his/her name by a firm, but does not contribute to its capital. He/she does not take active part in managing the firm, does not share its profit or losses but is liable, like other partners, to the third parties, for the repayments of the firms debts.
So, it's also liable to Creditors also.
So, it's also liable to Creditors also.
bsai partish
(166 Points)
Replied 19 August 2020
Difference between nominal partner and partner with holding out
sabyasachi mukherjee
(27579 Points)
Replied 19 August 2020
There are other differences on and above the differences stated above:
1. in normal parlance they are termed as dormant partners.
2. they do not take part in the business actively but certainly has some role.
3. they do not take part in profits and losses but as regards liabilities short term they are liable to some extent.
In case of any deficiencies.
1. in normal parlance they are termed as dormant partners.
2. they do not take part in the business actively but certainly has some role.
3. they do not take part in profits and losses but as regards liabilities short term they are liable to some extent.
In case of any deficiencies.
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