Is what the investor takes in the company mugarabah (profit-sharing) or brokerage, and does changing the intention transform the contract from brokerage to mugarabah?

The rulings on Mudarabah (definition) (profit-sharing) vary depending on the intention of the two parties (the capital provider and the broker), and the knowledge of the capital provider must be taken into account.

If the capital provider personally gives the money for Mudarabah, it is not permissible to give the money to a third party except with his permission. In such a case, the profit share for the capital provider, the first Mudarib (manager of the capital), and the second Mudarib must be agreed upon.

If the money is given to the questioner as a broker or intermediary, then he is only entitled to the agreed-upon fee.

As for the fee being a percentage of the profit, the majority of jurists do not consider it permissible. However, the preponderant opinion is that it is permissible, and this is the view of the Hanbalis. They cited the action of Ibn Abbas, may Allah be pleased with them both, as evidence for the permissibility of brokerage as a percentage, such as his statement: "There is no harm in saying: Sell this garment, and whatever exceeds such-and-such is yours."

Mere intention is not sufficient; rather, the form of the agreement and the Shariah-compliant structuring of the contract must be specified. The preponderant opinion is that the fee or brokerage being a percentage of the profit is permissible.