What is the ruling on me sharing my money with my sister in her women's clothing business, such that I contribute 63 million [currency unit] and she contributes 37 million [currency unit] along with her effort, then the profits are divided as follows: I take 60% of the profits from my capital only, and she takes the remaining profits, and I am prohibited from increasing my capital in the future, while she may increase as much as she wishes and takes the remaining profits, whereas losses are divided between us according to the proportion of each of our capital? And if this transaction is not permissible, what is the Shariah-compliant solution?
There is no objection to your participating with her in the capital, provided that she undertakes the work. This type of partnership combines both a regular partnership and a Mudarabah (profit-sharing partnership). A common percentage for profit distribution must be agreed upon (for example, half for you and the rest for her). However, her condition that your share of the profit be equivalent to 60% of your capital is not valid, because a percentage added to the capital implies a known amount. But it is valid to stipulate that if the profit exceeds a certain percentage, the excess goes to her, while first determining a common percentage as the basis for profit distribution.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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