Question: We have been offered a franchise of a company which deals in gold jewellery. If we purchase their product they offer us a bonus from their profit and moreover if we refer their product we also receive incentives. The company grows with more references, thus it affords to share with us a huge profit. Is this money HALAAL for a muslim? In this case, instead of hard work we are doing smart work of promoting the company's products and earning a profit. Should we join this venture?

Eg. I purchase gold worth Rs. 24000 and earn a profit share of Rs. 1 lac (tax deducted) assuming 100% growth of the company sales or the share will be in proportion to the growth percentage. The relation with the company is for 1 year. I may also book my gold by just paying 2000 in the beginning and repay the rest (22000) of the amount from the profit earned (1 lac) at the year end. Here the company attracts customers to book their product and grows depending on the bookings. Are we eligible to use the gold product for which we have used company profit money and is this money earned halaal?

2. Where do I use the money got through the interest over the GPF fund?

Answer: With respect to the first question, the money is halal, and the venture is also a halal one. The incentives from the company is based on the fact that you are promoting their products and in this way they are able to benefit. Hence, you are actually marketing their products. The incentives they wish to offer you are based on their choice and it is done from their side without any force or conditions placed upon them.

The gold which is paid for through the profit money is halal for use and the money earned will also be halal.

The interest money received from the GPF fund must be given to the poor and the needy.


And Allah knows best.
Mufti Waseem Khan