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

Stretching Feet Facing the Kabah: Allowed?

Q uestions: As-salamu `alaykum. Is it wrong to sit or sleep with your feet facing the east or facing the Kabah A nswer: In his response to your question, Sheikh Ahmad Kutty, a senior lecturer and Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states: If a person is sitting stretching his feet towards the direction of the Kabah with the specific intention of showing disrespect, then that is definitely considered a blasphemous act and a grave sin, for at all times we are ordered to respect the symbols of Allah. The Kabah, being the House of Allah, is worthy of utmost reverence. The Prophet (peace and blessings be upon him) said, “O Allah! Enhance the honor, status and awe of this House in the minds of those who visit or go around it.” Allah says, “Whosoever respects the symbols of Allah, he does so only by virtue of the piety embedded in their hearts.”(Al-Hajj 22:32) Having said this, however, I should further state: If a person does no...

7 Unknown Facts About Hajr Al Aswad Every Muslim Must Know.

The Hajr-e-Aswad also known as The Black Stone is set in the eastern corner of the Holy Kaaba. The Tawaf is started and ended by facing this sacred black stone. Over the years, throughout history, numerous people which included the Prophets of Allah (Peace be upon them) and the Holy Prophet Mohammad (Peace be upon him), the Sahaba (may Allah be pleased with them) and other pious Muslim personalities have performed Hajj and Umrah around the Holy Kaaba and have also placed their blessed lips on the Holy Stone. Today we are going to present some lesser-known facts about Hajr-e-Aswad.[irp] 1-The Hajr-e-Aswad also known as The Black Stone was brought down from heaven (Jannah) and was presented to Ibrahim (peace be upon him) so that he could place it in the corner of the Kaaba. Sunan an-Nasa'i 2935 2-The Hajr-e-Aswad was reportedly stolen from the Holy Kaaba during 930 CE by the Qarmatian warriors. These warriors sacked Makkah while desecrating the Well of ZamZam with corpses ...

After much trouble, first Friday prayer of Ramadan was peaceful in Gurugram

Gurugram:  After several instances of disruptions caused by a Hindu outfit in the recent past, the first Friday prayer was performed peacefully at 47 designated spots, including 23 open public spaces, across Gurugram under heavy police deployment. “It all went off peacefully. No incident of violence or disruption was reported,” said Gurugram Deputy Commissioner Vinay Pratap Singh as per a report by  The Hindu . The outfit Sanyukt Hindu Sangharsh Samiti that protested against Muslims praying in open spaces had assured the district administration a few days ago that it would not disturb the Friday prayers, moreover, members of the outfit had met Singh on May 16. However, despite police deployment, in a Hindu dominated village, Bhora Kalan, a few families alleged that they were not allowed by locals to pray. The members of majority community did not even let the Imam enter the village. Due to the locals objecting to Muslims conducting their Friday prayer in the open, t...