Q: I want to start a business and I have an idea. The problem is that the idea is so easy, if I go with this idea to a traditional investor or Venture Capital firm they will copy the idea or start it on their own.
I don’t have any capital to start the business so I can start the business with help crowdfunding. Will the business income be halaal?
My intention is clear that when I start making profit, I will start returning the money to the people or via the same way I got it, or I will donate the same amount of money to others.
Another thing is, can I use some money to buy a house with the capital raised because we are living in a rented house for a very long time and i want to buy a house.
Until I don’t return the full capital money as I said above, is it permissible to donate some part of the income to other people in need?
A: A partnership is where all the participants contribute financially. So you may contribute to the level that is manageable to you and others may contribute. Thereafter you can start it off.
The monies that are collected in a partnership are supposed to be used for the partnership entirely. You can use your share of the profits for your own needs.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)