Business Partnership

Syedna Aali Qadr Mufaddal Saifuddin TUS states;
“Partnership should be according to the tenets of Shariat Mohammediyah.”

Partnership according to Shariat Mohammediyah
Before engaging in Economic activity, a mumin needs to first understand the principles of Shariat Mohamadiyah, the guiding principles based on the tenets and canons found in Baab ul Buyoo of Da’aim al Islam. A partnership is an agreement formed between two or more individuals to pool their money, skills or other resources with the intent to share in the profit and loss of a particular venture.

Mushaarakat
A Partnership that involves the investment of Capital by all partners, with the Equity (ownership) proportional to the amount of Capital invested by the Partners.

Mudaarabat
A Partnership where one party provides capital to another non-investing party for a particular venture. Both parties share in the profit earned from the venture. Loss, however, is borne on the capital investment only.

Teachings from the Idara
The idaara teaches mumineen to maintain a good working relationship with each other and maintain trust and transparency during Partnership.

The idaara teaches mumineen to maintain a good working relationship with each other and maintain trust and transparency during Partnership.

  • Formation, Raza and Registration
  • Share of Ownership and Capital Investment
  • Liabilities and Debt
  • Dissolution of the Partnership
  • Permissible Practices
  • Sharing of Profit & Loss
  • Rights and Decision Making
  • Dispute Resolution

Need help in drafting your partnership deed?

http://tijaaratraabehah.org/partnership/

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