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What is the ruling on partnering with an information technology company, if the amounts previously paid for its services are converted into a share in the company, with a request to complete the paid amount to $3,0 in exchange for a share of anticipated and unguaranteed profits?

1 min readAlso available in العربية

It is not permissible to make a debt part of a company's capital, because one of the conditions for capital is that it must be a physical asset (عين) and not a debt (دين). It is not permissible for a debt alone to constitute a share in the company's capital, unless it is subservient to an asset that can be considered capital for the company. This is because the ability to manage the company's activities can only be realized if the capital is a present, physical asset. It is also not permissible for the capital in a Mudarabah (profit-sharing partnership) to be a debt owed by the Mudarib (working partner) or anyone else to the Rabb al-Mal (capital provider).

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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