• +27 11 413 2785/6

The Capital Contribution Percentage Being Different To The Profit-Share Percentage


Two people invest in a business. One gives 60 percent of the capital and one gives 40 . They agree that they will be 50-50 owners of the business. Is this permissible? If they want to terminate the partnership, how much share should each partner get?


Such a partnership is permissible and all profits will be divided according to what was mutually agreed upon stipulated which in this case is 50% each. The partners however will not be 50/50 owners of the business, rather they will merely be entitled to that amount of the profit accrued.

If such a partnership is terminated the profit will be distributed as stipulated i.e: 50% each and each person will be entitled to the capital he invested i.e: 60% for the one who invested 60% and 40% for the one who invested 40%.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.


Shaami V. 4 Pg. 312
Fataawa Mahmoodiyah V. 23 Pg. 404

Related Fatawa
A Share Of Profit For A Non-Partner

Question Two people invest in a company. They are 50/50 shareholders/owners. Both partners approach Zaid and tell him that you Read more

Cash And Kind Capital Contributions In A Partnership

Question Amar wants to start a partnership with Zaid, he says that I will provide the machinery and you should Read more

Selling A Share In A Partnership Without Informing The Partner

Question Can one partner sell his share in a business without the consent of the other partner? Answer In principle, Read more

Partnership Dispute

Question A person decides to buy something and he does not want to buy it alone. He makes a general Read more

Liability Of Expense Due To Exiting A Partnership

Question Six brothers are in partnership in a portfolio of various properties. One of the brothers would like to exit. Read more

Darul Ifta - Darul Uloom Azaadville - Madrasah Arabia Islamia