The Majlis Archive
Finance - Banking - Business The Majlis Vol 28 No 09, p.11

Can an investor set up the business.

Question

Can an investor set up the business. ie. pay for everything involved in the setup, construction, equipment, furniture, décor, literally everything. And then sell it to person B at a profit? For example, if it costs the investor 600k to set up the business, he marks it up by 50% and sells it to person B for 900k. And person B pays him off every month until the full 900k is paid up. Is this permissible? Also does he retain ownership until all the money is paid to him?

Answer

It is permissible to sell the assets at any price. The ‗investor' will cease being owner of the assets when the sale transaction has been made. He will be entitled to only the money owed to him.

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The Majlis Vol 28 No 09
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11

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Appears under CHILDREN IN THE MUSAAJID. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.

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