Is it permissible to consider additional money paid by partners in an existing company—managed by one of them—as Mudarabah capital, such that the company is the Mudarib (entrepreneur/manager) and the payers are the Rabb al-Mal (capital providers)?
The company can obtain additional funds by increasing the share of the partner who pays them, or by increasing the number of partners if the money comes from non-participating individuals. The funds can also be in the form of Mudarabah (a partnership in profit), whether from a partner or someone else, provided that the owner of the capital and the partners or the authorized manager agree. In the case of Mudarabah, the profit ratio for both the capital owner and the Mudarib (the company) must be specified, and the capital is not guaranteed. The Mudarib bears the loss in terms of their effort, while the capital owner bears the financial loss.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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