The method of structuring a partnership when some partners do not have wealth
Q: A business plan has been drawn up for a company wherein there are two partners sharing 50 percent each but they have no capital to start. A third party is keen on investing 100 percent of the capital into the business and he also understands that all the risks are borne by him alone. The two partners will be running the business and attending to the day to day activities of the business while the investor will merely advise and assist with decisions and the future planning of the business.
1. Can you explain the Shari’ah compliant way to structure this partnership?
2. How should the drawings of the three partners be structured?
3. The investor will invest for a short-term period of three years. At the termination of the period, what will be the correct way of settling?