Home » Hanafi Fiqh » Darulifta-Deoband.com » Is investing money in a friend’s business permissible under Islamic law?

Is investing money in a friend’s business permissible under Islamic law?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
Please clarify my query. I have invested Rs. 100000 in my friend’s business where they rent out machine and some consumable. In return I get Rs. 2250 as my share per month without any deductions or any increase/decrease. Is it permissible?

Answer

(Fatwa: 140/140/M=1434)

It is not clear what type of machines and goods does your friend give on rent. If your participation in the said business is as per the rules of muzaribah then the fixed amount (Rs. 2250) as profit is against the principles of muzaribah. It is not lawful to fix the profit in this way; rather the profit should be fixed as per the percentage.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

Read answers with similar topics: