Is it permissible to split profits equally (50% for each partner) if the paid-in capital percentages are different (60% and 40%)?
A "Sharikat al-'Inan" (limited partnership) is valid when two individuals contribute their capital and work together, with the profits shared between them. It is not a condition for the two capitals to be equal; indeed, a disparity between them is permissible. The profit distribution among partners is based on their agreement, even if there is a disparity in capital. It is a condition for the profit to be undifferentiated (mushaa') and known, such as a half or a quarter; it is not permissible for it to be a fixed amount, like, for instance, one thousand dirhams. The partnership is dissolved upon the death of one of the partners. The heirs have the right to agree with the other partner to remain in the partnership under new terms or to withdraw their share.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 17511
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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