Rules on Partnership Profit and Loss Distribution


Share in profit only permissible or must partnership must be for profit and loss?


If there is a loss in a company (partnership), each partner will have to bear the loss according to their respective share, for example, if one partner contributed 70% and the other contributed 30%, the loss will also have to be borne in the same percentage.

If a partner has a condition that they will only take profit and not bear any loss, then partnership in such a way is not permissible.

Answered by: Tabaruk Madani (AskMufti Scholar)

Verified by: Mufti Sajid Attari

Translated by Shaheer Attari

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