Category: Business Matters
Fatwa#: 38614
Asked Country: India

Answered Date: Sep 01,2017

Title: Partnership on a Fixed Profit


Assalamu alaikum.


I have given money of rs2 Lakh to my friend as an investment for his business. He undertakes government contracts.  He will get his payments for every 3 months.  He has agreed to give 30000 (thirty thousand rupees) from his profit  when he gets his payment. Is this contract valid.  


Please throw some light on this as we don't want to have haram dealings. 


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Your question is brief. It does not explain details of the investment.

Explain the role of your friend in the investment. What exactly will he be doing?

Will he also contribute capital?

In general, payout in a partnership investment should be based on the percentage of the profit. It is incorrect to stipulate an amount of the profit to be paid. [1] [2]

You may forward us the details of the investment for our observations and we will advise accordingly.

And Allah Ta’āla Knows Best

Anas Sharieff Qasmi

Student Darul Iftaa

Hyderabad, India. 

Checked and Approved by,
Mufti Ebrahim Desai.


 وأن يكون الربح جزأ شائعا بدائع الصنائع [٧/٥٠٥] [1]

[2]فتاوى هندية 2/٣٠١-٣٠٢ 

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