Skip to main content

Investing money in a company that will give him 3% of his capital is it Halal Or Haram

Related image

Praise be to Allah
Firstly:
it is not permissible, when forming a partnership, to agree that the owner of the capital will get a certain percentage of his capital, or a set amount. Rather his share should be a percentage of the profit, such as saying: You will get 3% of the profit.
But if it is said to him: You will get 3% of your capital, or you will get one hundred and fifty dollars, this renders the partnership invalid.
If, combined with that, his capital is guaranteed (and he will not lose any of it), as you mentioned, then this transaction is a riba-based loan.
Ibn Qudaamah (may Allah have mercy on him) said:
If the share of one of the partners is set as a specific amount of money, or a sum of money is set along with his share – such as if he stipulates that he will have a percentage plus ten dirhams, the partnership becomes invalid. Ibn al-Mundhir said: All of the scholars from whom I learned are agreed that the mudaarabah partnership is invalidated if one or both of them stipulate that they will have a certain amount of money. Among those from whom we learned that are Maalik, al-Awzaa‘i, al-Shaafa‘i, Abu Thawr and Ashaab al-ra’y. End quote.
Shaykh al-Islam Ibn Taymiyah said: 
If it stipulates in the mudaarabah contract that the owner of the money will get a certain amount of money, this is not permissible, according to scholarly consensus. That is because transactions should be based on fairness, and these transactions are a kind of partnership, and it can only be a partnership if each partner gets a percentage, such as one-third or one-half. If one of them is given a specific amount, that is not fair, rather it is unjust. End quote from Majmoo’ al-Fataawa, 38/83 
The Standing Committee was asked about two men, one of whom gave the other a sum of money with which to do business for him, and they agreed that he would give him 3% of the capital as a profit each month. 
They replied: 
Your giving the money to the trader to do business with it and his giving you a set amount, three percent of the money, is not permissible, because it is a kind of guaranteed profit. End quote fromFataawa al-Lajnah al-Daa’imah, 14/318 
They were also asked about a company that takes money from people to do business with it, and gives them a share of 30 percent of the capital every year, and claims that it makes a profit of 100 percent. 
They replied: 
If the company mentioned gives the partners a set, guaranteed amount of profit, this transaction is not permissible, because it is riba. The transaction which is permissible is that in which each partner is given a share such as one-quarter or one-tenth, which increases or decreases according to what happens. End quote from Fataawa al-Lajnah al-Daa’imah, 14/321 
Conclusion: it is not permissible to invest money in the manner asked about.
Secondly:
In a valid type of partnership, it is essential to know the nature of the field in which the money will be invested, and that it is permissible. It is not permissible for the money to be invested when it is not known in which field it will be invested; perhaps it will be invested in riba-based banks or gambling operations, or other unlawful things.
It is not permissible for anyone to let his love of wealth make him try to accumulate wealth in any way, even if it is prohibited. The Prophet (blessings and peace of Allah be upon him) said: 
“The Holy Spirit (Jibreel) has inspired to me that no soul will die until it has completed its appointed term and received its provision in full, so fear Allah and do not be desperate in seeking provision, and no one of you should be temped to seek provision by means of committing sin if it is slow in coming to him, for that which is with Allah can only be attained by obeying Him.” Narrated by Abu Na‘eem in al-Hilyah; classed as saheeh by al-Albaani in Saheeh al-Jaami‘, no. 2085. 
And Allah knows best.


Comments

Popular posts from this blog

10 Oldest Manuscripts of The Quran

Allah said in Surah al-Hijr, Ayah 09: Indeed, it is We who sent down the Quran and indeed, We will be its Guardian. And undoubtedly, the present-day Quran is same as the Quran which was revealed to Prophet Muhammad (PBUH). In this post, we take a look at some of the oldest manuscripts of the Quran, including ones that date back to the days of Prophet Muhammad (PBUH) and the Rightly-Guided Caliphs. 10 Oldest Manuscripts of The Quran 1. Birmingham Quran Manuscript In 2015, at the University of Birmingham, scientists found an old Quranic manuscript on parchment, using clearly legible Arabic Hijazi script. It is said to be one of the oldest manuscripts, and it dates back to sometime between 568 and 645 CE, that is, probably sometime during the life of Prophet Muhammad (PBUH) himself. 2. Sana’a Quran Manuscript The Sana’a Quran manuscript was found in Yemen in 1972 during the restoration of the Great Masjid of Sana’a. The manuscript is written on parchmen...

What Is the Correct Time to Break Fasting?

Q uestion : As-salamu `alaykum. I was in a gathering a few days ago. I was disturbed to see people divided on the issue of when to break the fasting. I saw one group breaking with the adhan over the Radio (Ramadan program), while another group still waiting with dates in their hands for the adhan to finish. What is the sound Islamic ruling on this issue? A nswer : The time for breaking the fast is the time of sunset. So if the sun sets at 4:56 pm, it is the correct time to break the fast. It is immaterial whether the adhan has been called or not. To wait for the adhan to be called after the sun has set, or to wait for the adhan to finish, is a violation of the Sunnah of the Prophet (peace and blessings be upon him), as he has stated clearly, “My Ummah will always enjoy blessings so long as they hasten to break their fast (as soon as the sun has set).”(Al-Bukhari and Muslim) The traditions are explicit on the fact that the Prophet (peace and blessings be upon him)...

Dua to recite in second ten days of ramadan

Second Ashra – Days Of Forgiveness Forgiveness is to do Astaghfaar for all sins committed so far by Muslims especially in the second Ashra of Ramadan and to repent unto Allah. Do Astaghfaar, feel sorry, desist from committing it again, and make sure not to fall for the same sin again.Dua for the second Ashra is: Translation:   “I seek forgiveness from Allah, my Lord, from every sin I committed” –     Days Of Maghfirah These are the days of Maghfirah and in the mid of Ramadan Allah’s forgiveness is at peak. He forgives only those who prostrate in front of Him with ashamed spirit and pledge in heart not to do the same again ever. Do Tauba as Allah loves those who repent on their sins, verily He is the only forgiver. –     Be Kind – Forgive All While you are asking for Allah’s forgiveness in this Ashra make sure that you do the same to our fellow Muslims by adopting alike trait of your Lord and let forgive them for all th...