Ruling on using another person's name to open a business or other enterprise
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Regarding some individuals, they use the name of another person to establish or open a commercial institution—for example, an employee of the state. The state's regulations prohibit an employee from opening a commercial establishment. Is it permissible for him to open a business under someone else's name, or is it not?The Shaykh: I ask you: Is this lying or truth?The questioner: This is a lie.
The Shaykh: Is lying permissible?The questioner: It is not permissible.But what is observed, O Shaykh: Is this advice to the state, or is it deception?The questioner: Is it deception?The Shaykh: Is the wealth earned from a business based on lying and deception invalid, or is it lawful?The questioner: It is invalid.
The Shaykh: Therefore, there are three prohibitions in this matter: lying, deceiving the state, and consuming wealth through invalid means. Accordingly, it is forbidden, and it is not permissible for a person to borrow another person's name to do what the state has prohibited.
And it is said to this man: Either you remain in your job and leave the business, or you take the business and leave the job. The state did not force you to be an employee of theirs.
The Shaykh: Is lying permissible?The questioner: It is not permissible.But what is observed, O Shaykh: Is this advice to the state, or is it deception?The questioner: Is it deception?The Shaykh: Is the wealth earned from a business based on lying and deception invalid, or is it lawful?The questioner: It is invalid.
The Shaykh: Therefore, there are three prohibitions in this matter: lying, deceiving the state, and consuming wealth through invalid means. Accordingly, it is forbidden, and it is not permissible for a person to borrow another person's name to do what the state has prohibited.
And it is said to this man: Either you remain in your job and leave the business, or you take the business and leave the job. The state did not force you to be an employee of theirs.