What are all the types of partnership contracts for companies?
In Islamic jurisprudence, companies are primarily divided into two main types:
1. Partnership of Ownership (Shirkat al-Amlak): This is when two or more persons share ownership of a financial asset, and none of them may dispose of it without the permission of the other(s). 2. Partnership of Contracts (Shirkat al-Uqud): This involves sharing in commercial transactions and is divided into: Partnership of Capital (Shirkat al-Amwal): An agreement to trade with shared capital and divide the profits. Partnership of Labor (Shirkat al-A'mal): An agreement to perform a specific type of work and divide the earnings. Partnership of Reputation (Shirkat al-Wujuh): An agreement to purchase on credit and sell for cash, sharing the profits. Partnership (Shirkat al-Mudarabah): One party provides capital to another to trade with it, and the profits are shared.
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Reviewed by El Fatwa's sharia committee.
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