Q: I have started a new business for which I need some funds. I do not want to take a loan that involves interest. I have found an investor but he wants some kind of profit. I really really need the fund for my business so how do we proceed in a halal manner?
Q: I want to invest some money in a friend's import export business against which he would give me a fixed monthly income regardless of the actual profit or loss he makes in the business. Is it halal for me to do this investment and take monthly fixed profit?
Q: I was recently given a 1/3 share in a business (i.e.without investing anything). However I am currently a working partner in the business. My question is
1. Am I intitled to a salary?
2. When the shares are distributed, do I recieve any?
3. If i am not intitled to a salary, what is the way foward with regards to me recieving extra due to being a working partner?
Q: Person A gives person B £1000 to buy a car in order to sell. All the profit from the sale is split by person A and B. Person A will receive his £1000 back. After that if there is any left over money then it will be split between A and B. Is this permissible?
Q: Six months ago my businessman friend approached me and told me that he has got a big order from his customer but he doesn’t have enough money to fulfill his order. So he asked me to invest 1 million in his business so that he can complete the order and he would pay me a profit from this order in proportionate to my investment which is around 0.4 million. Order was confirmed and payment was secured. Is this halal for me?
Q: One of my friends wants to open a store with me in a partnership. We will share the profits equally by each of us receiving 50%. However, my main store will supply stock for this store at a small profit to me only (to cover transport costs, wages for my workers who will be loading, offloading, marking, etc.). What is the Shar’ee perspective regarding this arrangement?
Q: I have paid 50% money for owning a business firm and the owner put a condition that I must pay the balance 50% within 6 months’ time and I have to give the money from foreign country where he is working. I can run/own the business only after paying the full amount. After 5 months, I asked my friend to join the partnership with this business by paying the balance of the money from a foreign country and he is ready to join also. However currently the value of this business is increased during this 6 months duration. So, can I reduce his partnership percentage to 30% as per current value of business firm and actually he paid 50% of the total value (It means he has to pay more money than actual value that I brought as per current market price). Is it become permissible as per Islamic rule?
Q: Mr Company intends buying a property for R10 million. They have R4 million available and want others to invest the remainder of the money with them. Ishaaq, Saleem and Faheem are willing to invest. Ishaaq will invest R3 million, Saleem R2 million and Faheem R1 million. They want to invest in it on a diminishing mushaarakah basis. The profits and losses will be shared according to the capital contribution, and the company is willing to pay all 3 of them off in approximately 5 years.
Assuming that the property yields a rental income of R100 000 a month (R1.2 million a year)
Income distribution
| Mr C | Mr C | Ish | Ish | Sal | Sal | Fah | Fah | |
| Year 1 | 40% | R480000 | 30% | R360000 | 20% | R240000 | 10% | R120000 |
| Year 2 | 55% | R660000 | 25% | R300000 | 15% | R180000 | 5% | R60000 |
| Year 3 | 70% | R840000 | 20% | R240000 | 10% | R120000 | ||
| Year 4 | 80% | R960000 | 15% | R180000 | 5% | R60000 | ||
| Year 5 | 100% | R1200000 |
Purchase of Shares by Mr Company
| Mr C | Mr C | Ish | Ish | Sal | Sal | Fah | Fah | |
| Year 1 | 40% | R4 mil | 30% | R3 mil | 20% | R2 mil | 10% | R1 mil |
| Year 2 | 55% | R5.5 mil | 25% | R2.5 mil | 15% | R1.5 mil | 5% | R500 000 |
| Year 3 | 70% | R7 mil | 20% | R2 mil | 10% | R1 mil | ||
| Year 4 | 80% | R8 mil | 15% | R1.5 mil | 5% | R500 000 | ||
| Year 5 | 100% | R10 mil |
1) Is the above form of investment permissible?
2) Is it permissible to change the profit sharing ratio to suit the needs of the investors, different from the capital contribution ratio? For example, in the
above scenario, Mr Company contributed 40% and Faheem 10%, but in order to please Faheem, they agree to let him take 15% profit while Mr Company takes 35%?
3) Is it permissible to fix an amount to be paid to a certain investor? For example, every month as a return on his investment, he will receive R20 000?
4) Is it permissible to set a fixed percentage of the investment as a return? For example, he will receive a 10% return on his investment monthly?
5) For the sake of ease in distributing the profits, is it permissible to distribute the profits during the year based on estimated profits that will
be received, and at the end of the year, make the necessary adjustments based on the actual profits that were received? Thus, at the end of the year, the profits will be adjusted for each shareholder in accordance to the actual profits received.
Q: I have a shop in Karachi. A friend of mine has opened a business in the shop. I did not agree to sharing the profit but agreed that he pays a nominal rent until the shop goes in profit. He is paying is this nominal rent. But he keeps saying that we should agree on some deal that relates to the profit in the business. A suggestion is that instead of 'ijareh I become a partner in business. Can I consider the shop as investment from my side equal to the market price of the shop? He also has invested in the shop. So is it jaíz if we make a deal that 60% of the total profit will be for his efforts paid to him and the remaining 40% will be divided based on the investment of each of us?
Q: I have decided to terminate my partnership and need help regarding the following:
1) We will be finalising the balance sheet and come to a nett figure. Is it correct to calculate the nett value of the business after depreciating all the assets to current market value?
2) All accounts receivables will be calculated at 100% recovery rate less standard discounts that clients would normally take. This figure will than be used as the nett value against monies receivable. The partners agreed to this recovery rate.
3) The partners have agreed on a repayment plan.
Is the exiting partner entitled to a profit share whilst the outstanding monies of his hasn't been paid from the business. Does this apply whether the exiting partner comes to the work place or not. We understand that as partners we are not entitled to a fixed salary but rather to profit share.
4) Is charging for future earnings permissible. Is there any kitaab that we can read that will have shariah rules to answer all the complexities of desolving a business partnership. May Allah Ta'ala guide us all.