Sunday, 5 April 2026 (17 Shawwal 1447 AH)
Question: A man is barred from trading. He asked another man, who is licensed to trade, to conduct the trade under his (licensed) name. The licensed man consented on condition that he receive 40% of the profit. Is it lawful for him to take that, bearing in mind that he does no work and bears no hardship—he only takes it in exchange for the name?
Answer—and Allah grants success: The name-holder ought not, by stipulation, to take anything—due to Allah’s prohibition of consuming people’s wealth unjustly; the one asked about seeks to take some of his partner’s wealth without right.
Yes, if the giver’s soul is content and he gives it willingly, then it is lawful for the recipient—provided there is no contracting or stipulation. As for taking it by contracting and stipulation, that is invalid and impermissible.
The reason is that sale and lease only attach to property (māl), and a name is not property.
Yes, if the name-holder incurred expenses or hardship in obtaining a license to operate, then in such a case it is permissible for him to take compensation for the name.
Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2