want to start a business,a shop, and put a friend to run it. I want to give him 50% of the profits.
Question
i want to start a business,a shop, and put a friend to run it. I want to give him 50% of the profits. How do i do this according to the shariah.
Answer
There are three ways to go about with this:
1. You set up the business with your own money and your friend runs the shop on a 50% profit basis. This implies that if there is no profit, then your friend will not get anything. If there is a loss, only you will be responsible, not your friend.
2. Your friend be employed on a set monthly wage. He will be entitled to the wage irrespective of the business yielding a profit or not.
3. Your friend also contributes to the set up of the business. He could also be actively engaged in the business. In this instance, he will get a share of the profit based on partnership as well as a wage. If there is a loss, he will have to bear that equivalent to his capital contribution.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
- Answered by
- Mufti Ebrahim Desai
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