Author: Dr. Muhammad Zia-ur-Rahman Azmi (رحمہ اللہ)
Prohibition of Purchasing Names for Partnerships in Companies
Purchasing another person’s name to become a partner in sharing companies or banks is considered haram (prohibited) and an act of fraud. Such transactions are not permissible in Islamic law.- Prohibited Earnings:
- The seller who profits by selling their name is earning haram income.
- Similarly, the buyer who uses the purchased name to generate income also earns haram wealth.
- Interest-Based (Riba) Operations:
- Most of these sharing companies and banks operate on interest-based transactions (riba), making it unlawful to participate in them.
- As banks are predominantly interest-driven institutions, forming partnerships with them is also impermissible.
Key Points
- Fraud and Deception:
Buying and selling names for financial partnerships involve deception and contradict the ethical and moral principles of Islamic business conduct. - Interest-Based Systems:
Partnerships in companies and banks involved in riba are strictly prohibited in Islam, as riba is explicitly forbidden in the Quran and Sunnah. - Invalid Transactions:
Income generated from such fraudulent practices or interest-based partnerships is considered illegitimate and is not permissible for consumption or use.