How to make a reset form button without type 'markup'?
Type should be reset, not button.
  
  http://www.w3schools.com/tags/att_button_type.asp


You right, there is no such type. I was able to get this working with 2 submit buttons and return false (similar to your original implementation).

function drupalform_form($form, &amp;$form_state) {

  $form['name']=array(
    '#type'=&gt;'textfield',
    '#title'=&gt;t('Enter your name'),
    '#description'=&gt;t('Your first name goes here')
    );

  $form['submit_button1'] = array(
    '#type' =&gt; 'submit',
    '#value' =&gt; 'Submit',
    );  

  $form['reset_button'] = array(
    '#type' =&gt; 'submit',    
    '#value' =&gt; 'Reset',
    '#validate' =&gt; array(),
    '#attributes' =&gt; array(
        'onclick' =&gt; 'this.form.reset(); return false;',
        ),
      );

  return $form;
}


If it still doesn't work there is this alternative solution: How to reset specific form elements