Ruling on Purchasing Others' Names for Company Partnerships

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.
  1. 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.
  2. 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

  1. Fraud and Deception:
    Buying and selling names for financial partnerships involve deception and contradict the ethical and moral principles of Islamic business conduct.
  2. 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.
  3. Invalid Transactions:
    Income generated from such fraudulent practices or interest-based partnerships is considered illegitimate and is not permissible for consumption or use.

Reference

This ruling is supported by the scholarly opinion of Sheikh Saleh Al-Fawzan, as mentioned in "Al-Muntaqa," page 59.
 
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