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Fatwa CenterFormed business partnership with person whose money is questionable
Question
I have opened a shop with a Christian partner 6 months ago. I learnt recently that this partner has taken the money he contributed from his dad - who own as a grocery store that sells groceries and alcohol. Is this (50-50) partnership Halal? What am I supposed to do now?
Answer
Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.
It is better for a Muslim to choose as a partner an honest just Muslim in order to have a blessed, fruitful business, Allah Willing. And it is disliked to take a non-Muslim partner or even a Muslim who does not avoid dealing in Haram.
However, if a Muslim takes a non-Muslim partner, he should not allow his partner to act alone because he (non-Muslim) might use money in what is not permitted. The Muslim partner should know before hand whether all his partner's wealth is Haram, since it is Haram to deal with a partner whose whole wealth is Haram whether he is a Muslim or a non-Muslim. This is the opinion of al-Shirazi in al-Muhazzab.
As for the person whose whole wealth is Haram, it is unlawful to deal with him, give him loans or take loans from him. He is even prevented from dealing in his own wealth.
Therefore, it is Haram to deal with a non-Muslim as long as all his property is Haram.
Allah knows best.
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