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Can I charge a client for using my company’s name?

Answered according to Hanafi Fiqh by Askimam.org

I am Owner of a company in Oman, with Total Paid Up Capital of US$ 52,000/-.

As expatriate in Oman are not allowed to Own 100% ownership in local company, they have an option establish a Limited Liability Company with a Omani partner  which requires the Expatriate to provide minimum Equity of US$ 390,000/-. The ones that don’t have this huge amount of Equity they run their business on the Omani owned companies. However, legally they don’t have any shareholding in the Omani owned company.  In return, many Omani Owners just charge a monthly commission fees for providing the expatriate to run his business under the Omani owned company.

My query is regarding the above transaction. As I have expatriate approaching me, proposing to let them run their business under my company’s name. I want to know if it is allowed to charge them monthly fees to let them run their business under my company’s name. And if it would be allowed, then what would be the recommended to calculate the same.  Pls note that I will not have any direct or indirect investment in their business.

JazakAllah Khair

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

It is compulsory upon a resident of a country to abide by the laws of the country which are not against Shariah. [1]

We do not know of the legal implications of registering an expatriate and charging him a fee in terms of Omani law. If the law of the country does not permit you to do so then, it will not be permissible for you to carry out the above proposed deal. However, if the law permits you to do so then, in terms of Shariah the expatriate in reference is paying you for using your company’s name which is not permissible [2] as a company name itself is not a commodity. [3]

However, if you are offering some service to the expatriate by using your company name for example you have to do registrations, installations such as electricity etc. then you may charge him a fee for the services you are providing. Alternatively, the expatriate may hire you to supervise some aspect of the company albeit for a short while (once a month) and thereafter he pays you for that service.

And Allah Ta’āla Knows Best

Ismail Dawoodjee

Student Darul Iftaa
Zambia

Checked and Approved by,
Mufti Ebrahim Desai.

www.daruliftaa.net 

[1]يَا أَيُّهَا الَّذِينَ آمَنُوا أَطِيعُوا اللَّهَ وَأَطِيعُوا الرَّسُولَ وَأُولِي الْأَمْرِ مِنْكُمْ فَإِنْ تَنَازَعْتُمْ فِي شَيْءٍ فَرُدُّوهُ إِلَى اللَّهِ وَالرَّسُولِ إِنْ كُنْتُمْ تُؤْمِنُونَ بِاللَّهِ وَالْيَوْمِ الْآخِرِ ذَلِكَ خَيْرٌ وَأَحْسَنُ تَأْوِيلًا

وتجب طاعة الإمام عادلا كان أو جائرا إذا لم يخالف الشرع (رد المحتار علي الدر المختار، ج ٤، ص ٢٦٣)

مطلب في وجوب طاعة الإمام (قوله: افترض عليه إجابته) والأصل فيه قوله تعالى {وأولي الأمر منكم} وقال – صلى الله عليه وسلم – «اسمعوا وأطيعوا ولو أمر عليكم عبد حبشي أجدع» وروي «مجدع» وعن ابن عمر أنه – عليه الصلاة والسلام – قال «عليكم بالسمع والطاعة لكل من يؤمر عليكم ما لم يأمركم بمنكر» ففي المنكر لا سمع ولا طاعة (رد المحتار علي الدر المختار، ج ٤، ص ٢٦٥)

اپ کی مسائل ج8ص165 مکتبة لدهيانوى

احسن الفتاوى ج8 ص217 سعيد

وبيع الحقوق بالانفراد لا يجوز(تبين الحقئق ج4 ص52 امدادية/درر الحكام ج2 ص173مير محمد /العناية ج6 ص430 احياء الكتب)[2]

أحسن الفتاوى ج 6 ص 528 أيج أيم سعيد

فتاوى محمودية ج 16 ص 178 إدارة الفاروق

[3] المال مايميل اليه طبع الانسان ويمكن ادخاره الى وقت الحاجة منقولا كان او غير منقول (شرح المجلة ج1 ص17 رشيدية)

[4] وَاعْلَم ان صِحَة الاجارة مُتَعَلقَة بشيئين اعلام الاجر واعلام الْعَمَل فاذا كَانَ احدهما مَجْهُولا فالاجارة فَاسِدَة لما روى عَن النَّبِي عَلَيْهِ الصَّلَاة وَالسَّلَام انه قَالَ من اسْتَأْجر اجيرا فليعلمه اجره (النتف ج2 ص558 سعيد)

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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