Title: sharing condition in business

Question: We want to start a business. We are totally three partners. One of the sleeping partners is interested to invest maximum amount, while rest of partially less working partners are investing less amount. We have agreed to distribute the annual net profit percentage not equally according to the money invested but 35%, 35% and 30%. Is this permissible as other two partners are not investing much amount as the 1st one? Moreover to run this business we are employing one person on monthly salary + other medical/ travelling expenses, in addition we agreed to give him 2% profit annually as an incentive on the net income profit what we earn from our business. We want to know is it permissible for him to get the monthly salary as well as 2% profit as an incentive from our business.

Answer ID: 42937Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 51/59/D=1434) It is lawful to give the employee 2% as prize except salary out of the yearly profit of business.