What is the ruling concerning this company that relies not on capital but on effort? Is it a company of bodies, or of faces, or of 'inan? And what is the ruling concerning calling what is disbursed monthly to the partners a "salary"? And what is the ruling concerning what is disbursed to them for travel or for working extra hours?
This company is a company of persons or works, where an agreement is made to accept, manufacture, and install works according to customer demand, and no monetary capital is required for it. Profits are distributed among the partners according to the agreement, without stipulating a fixed amount for any one of them. It is permissible to contribute fixed assets to the company, with their ownership remaining with the parties or being purchased from the partners' funds. What is called a monthly salary is permissible as an accelerated part of the profit share, to be deducted later. It is also permissible to agree to pay an additional amount to the partner for overtime hours or during travel, as a work wage outside the company's contract.
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