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  • Fixed Commission On Investment Made In A Company

    Posted by Hassaan Adil on June 9, 2022 at 3:47 am

    Salam! I have invested some money in a company, i have to do a particular work relating e commerce and in return the company gives a 3% profit on the total money i have invested, i can withdraw my principle and my profit both. I have listened to Mr Javad Ahmed Ghamdi that taking profit on a consumable thing is Haram. I am very worried that whether the bussiness i am doing is right or wrong in Islamic teachings. Kindly help me in this issue!

    Umer replied 2 years ago 2 Members · 1 Reply
  • 1 Reply
  • Fixed Commission On Investment Made In A Company

    Umer updated 2 years ago 2 Members · 1 Reply
  • Umer

    Moderator June 10, 2022 at 1:16 am

    Demanding profit on loan is Riba (Sood) and is Haram in Sharia. Investment/financing in any company doesn’t fall in this category. You have to decide whether it is a lending arrangement or genuine financing.

    Please refer to following response of Ghamidi Sahab:

    Discussion 1276 • Reply 69418

    Ghamidi Sahab is proponent of Principal-Secured Financing as a mode of alternative financing to current lending operations of the Banking Sector. This entails that an investor doesn’t necessarily have to share losses of a buisness from his principal investment amount, which should be kept secure for the financer.

    e.g. If the investor is not actively involved in management and day to day operations of the business then he should go for principal-secured financing arrangement, where his principal investment will be secure and returned to him in case of permanent loss, with exceptions to extraordinary circumstances. As for the profits, investor can either agree to split them as a percentage of actual profits or losses (won’t be taking any profit in case of a loss); or investor can agree on a percentage share for estimated profits by choosing a low percentage so that it covers for both profits and losses throughout the years.

    To understand further, please refer to the responses of Ghamidi Sahab shared in the following links.

    Discussion 60332 • Reply 60411

    Discussion 60332 • Reply 60501

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    Please also refer to the video below from 19:35 to 24:16

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