Is it permissible for a father to open a business in his son's name, with the capital provided by the father, a fixed profit for the son, and the remaining profit returning to the father?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The type of transaction between the questioner and his father in the project must be clarified. If it is a lease () for his work with a known monthly wage, then it is valid. However, if it is a partnership for a fixed amount of profit, and not a common percentage, then it is impermissible due to the uncertainty of the wage. But if he has a known percentage of the profit, along with taking a monthly amount as an advance, and then the accounting is settled later, this is permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/193504
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 193504
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy