What is the ruling on working in what scholars call a profit-sharing partnership, where one gives a person money to open a shop in his own name or in the name of the owner of the capital, with the intention of providing assistance?
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The questioner : May Allah reward you, O Shaykh. To add to the brother’s question: if a person wants to help another person, so he gives him capital and says to him, “Open a shop in your name, and I will have a share, for example, of this shop,” and the intention is assistance, not the intention of profit?
The Shaykh : That means the money was from one person and the work was from another person.
The questioner : Yes.
The Shaykh : A profit-sharing partnership. This is called a profit-sharing partnership by scholars when you give a person money and say, “Work with it, and the profit will be between us in halves, quarters, or something similar.” It is a profit-sharing partnership, and there is no harm in the worker opening it in his own name, because in reality, he is the one working in it. Yes.
The questioner : May Allah reward you with good.
The Shaykh : That means the money was from one person and the work was from another person.
The questioner : Yes.
The Shaykh : A profit-sharing partnership. This is called a profit-sharing partnership by scholars when you give a person money and say, “Work with it, and the profit will be between us in halves, quarters, or something similar.” It is a profit-sharing partnership, and there is no harm in the worker opening it in his own name, because in reality, he is the one working in it. Yes.
The questioner : May Allah reward you with good.