Can I be a partner in a company that borrows interest based loans?

Q: I want to buy a business with a Muslim friend, and I want to avoid using an interest bearing loan from the bank. My friend has studied the issue of interest and holds the opinion it is permissible in this country. If the bank agrees to loan the money to my friend whilst I make a contribution towards […]

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Is it permissible to have a fixed return in a profit sharing agreement?

Q: Is it permissible to have a fixed return in the following profit sharing agreement?  A lender agrees to provide an interest free loan to a businessman.  Separately, the businessman will in the near future be completing a trade and selling certain goods to his customer.  The lender wants to raise a contract to stipulate that the businessman will pay back the […]

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Can we provide brokerage services for non shariah compliant activity?

Q:  We run a business and provide broking services online for home cooks and buyers of food and take x% commission for each successful transaction.  Unfortunately there are some buyers and sellers who buy and sell meals containing non halal meat, pork, and in rare cases, alcohol. We receive a commission on these orders also.  Process […]

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Do we have to verify the source of income of an investor before going into partnership with them?

Q: We are planning to start a school in India. Our intention is to start with a conducive learning environment to our Muslim children without compromising our ethics and values, which is totally missing in non-muslim institutions. Though the school is based on a business model, all investors have agreed to pay back 40% of the […]

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Is the rent received from a barber shop halal?

Q: My dad has a shop which he has rented to a barber shop, my father had no idea if that money would be haraam, now he has given his word and that person has bought all the equipment’s for his saloon and renovated the shop. what the ruling of this money earned?  الجواب حامدا ومصليا ومسلما ومنه الصدق […]

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When doing business, is there a limit on the amount of profit according to Islam?

Q:  l had a question regarding silver bullion we buy & sell and wanted to know how do we determine how much to charge to sell these silver bars, what is a acceptable profit margin as my friends says there is none. Even if there is no limit on the profit one is allowed, l […]

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Possessing shares in a restaurant that serves alcohol

Q: I am a silent partner in a restaurant that serves alcohol.What course of action should I take with my share? My partners are unlikely to sell. If I have to sell, who do I sell to? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: It is not permitted to serve alcohol and any income thereby earned […]

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Is it permissible to use a non-islamic business account that does not accrue interest?

Q: Is it permissible to use a non-islamic business account that does not accrue interest for a ltd company? الجواب حامدا ومصليا ومنه الصدق والصواب A: It is permitted to use an account of a conventional interest-based bank that does not bear interest for a limited company. Any deposits in the account are essentially a […]

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Is it permissible to sell halal products to night clubs and bars?

Q: Is it permissible to sell and provide halal products to night clubs and bars. I would only be entering their premises during the day time when they will not be engaged in active business. The halal products that I would be supplying is an energy-shisha vapour product and dispensed from a vending machine located […]

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Is it prohibited to get a tax refund on Zakāt?

Q: It is prohibited to get a tax refund on zakat? الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب   A: The benefit prohibited to the payer of zakāt is that which comes directly from the zakat itself.  Incidental benefit from a third party, as in the case of a tax refund, is not prohibited.  

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What types of contracts may relate to a minor and what basic rulings apply?

Q: What types of contracts may relate to a minor and what basic rulings apply?   الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب A: There are three basic types of contracts that may relate to a minor: 1. Contracts that are only beneficial for a minor. E.g., acceptance of gifts, charity or wills. Such contracts do not […]

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