[Q-ID0620] Is it permissible to go into a business partnership with a non-Muslim?

QUESTION:

What do the scholars of the Dīn and muftīs of the Sacred Law state regarding the following issue: I am about to go into partnership with a non-Muslim, so is this permissible. Please can you also mention the basic types of partnership and which ones are permissible between a Muslim and non-Muslim??

Questioner: Zeeshan from India

ANSWER:

بسم اللہ الرحمن الرحیم
الجواب بعون الملک الوھاب اللھم ھدایۃ الحق والصواب

There are two fundamental types of partnership:

  1. Mufāwadah [complete]
  2. ‘Inān [partial]

‘Inān [partial] partnership between a Muslim and non-Muslim is permissible, whereas there cannot be mufawādah [complete] partnership between a Muslim and non-Muslim. Mufāwadah [complete] partnership is when they are each other’s representative and bailsman [i.e. liable for one another], meaning one can fulfil the responsibilities of the other and if one has any dues, the other will be responsible for them. Thus, the debt which one is liable for would mean that the other is liable & shares mutual responsibility for this also, just as it is mentioned in the books of mutūn.

Due to the conditions for this being interlinked, they are not usually found nor are they well known among people.

‘Inān [partial] partnership is when two partners do business in a specific type of trade or they do business all in types of trade but one is not liable for the other, and this is permissible between a Muslim and non-Muslim.

Just as it is stated in Fatāwā Hindiyyah,

فَتَجُوزُ هَذِهِ الشَّرِكَةُ بَيْنَ الرِّجَالِ وَالنِّسَاءِ وَالْبَالِغِ وَالصَّبِيِّ الْمَأْذُونِ وَالْحُرِّ وَالْعَبْدِ الْمَأْذُونِ فِي التِّجَارَةِ وَالْمُسْلِمِ وَالْكَافِرِ، كَذَا فِي فَتَاوَى قَاضِي خَانْ. وَفِي التَّجْرِيدِ ” وَالْمُكَاتَبِ “، كَذَا فِي التَّهْذِيبِ”

“‘Inān partnership is permissible between a man & woman, a mature person & non-mature person who is permitted [by his guardian to perform transactions], a non-slave & slave who is permitted [by his owner to perform transactions] and a Muslim & non-Muslim.”

[al-Fatāwā al-Hindiyyah, vol 2, ch 1, part 3, pg 319]

In addition, it is stated in Bahār-e-Sharī’at that there can be an ‘Inān [partial] partnership between a man & woman, Muslim & non-Muslim, a mature and non-mature of understanding when the guardian of such has given permission [for him to perform transactions on his behalf] and a non-slave & slave who is permitted [i.e. on behalf of his owner].

[Bahār-e-Sharī’at, vol 2, part 10, pg 499]

واللہ تعالی اعلم ورسولہ اعلم صلی اللہ علیہ وآلہ وسلم
کتبہ ابو الحسن محمد قاسم ضیاء قادری

Answered by Mufti Qasim Zia al-Qadri
Translated by Haider Ali

Read the original Urdu answer here: [Q-ID0620] Is it permissible to go into a business partnership with a non-Muslim?

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