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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?

1 min readAlso available in العربية

The type of transaction between the questioner and his father in the project must be clarified. If it is a lease (ijarah) 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.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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