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Employees starting their own company

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: Me and my friends are planing to register a company which focuses on construction solutions. Presently, we are working in a company as an employee and all of us are working in different sectors. Our employer has several businesses, and healthcare is one of them. For each machine installation they hire a third party vendor or labors for construction and finishing works. My question is that we are the employee of the same XYZ company and now we open our own company (Want to run our own business as a part time) as they require third party or vendor for their construction work. Can we take orders for construction works from our company without showing them that we owned that company or can we show our other friend who is not a part of our employer company. Our employer doesn’t bother with the company, they focuses only on job (completion of job on time). Is it permissible for us to take orders from our employer company and is it halaal for us?


A: Yes. It is permissible as long as you are sure you are able to deliver the work honestly and according to the expected standards.

And Allah Ta’ala (الله تعالى) knows best.


Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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