Mufti Online — Madrasah Ta'leemuddeen

Profit-sharing in a Partnership

· 23 Dhuʻl-Qiʻdah 1435 AH1 min readEnglish

Question

We are two partners in a business. The one partner works in the business and takes a salary. When there is profit-sharing, how do we divide our profits?

Answer

The profits will be shared pro rata to the ownership in the company e.g. if one partner owns 30% and the other 70% of the company, the profit-sharing will be in accordance to their ownership (i.e. 30% and 70%). However, if they mutually agree that one partner will take more profit than the other, it will be permissible on condition that the percentage of profit received by the working partner is not less than the percentage of his ownership in the company.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/7675
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