Is it permissible to conclude a loan agreement between a parent company and its subsidiary—whether it is an interest-free loan (qard hasan) or an interest-bearing loan—to facilitate the transfer of funds between them, and in compliance with the state's accounting standards? And what is the ruling on drafting the agreement if it is not permissible?

It is permissible to conclude a qard hasan (definition) (interest-free loan) agreement between a parent company and its subsidiary. If the loan includes a stipulated increase, it is riba (usury) and forbidden, unless the financial liability of both companies is one and the same (i.e., they are owned by a single proprietor), in which case it is permissible because it is akin to a person dealing with himself. However, if the financial liability of the subsidiary company is partially independent, then an interest-bearing loan is not permissible. Jurists have stipulated that riba does not apply between a slave and his master, and similarly, a company concerning what it fully owns of its subsidiary companies. Assisting in a forbidden usurious loan is not permissible.