shirkah, shirkat?A contract between two or more
people where they enter into a financial agreement whereby the decision making,
investment and profits are shared, although not necessarily equally. One
party’s investment need not be financial, for example – they could be providing
time or expertise in return for a share of the profits (shirkat-ul-aamal). It is usually divided
into two types: shirkat-ul-milk
(a joint ownership between parties, where each party has provided capital) and shirkat-ul-‘aqd (any
partnership created through a contract or a joint commercial enterprise).
Shirkah has a wider and more general meaning than musharakah, which also means sharing.
partnership where all aspects, including investment, time spent in management,
risk and profits are equal for all parties.
shirkat-ul-aamal, shirkat-ul-a’mal?A partnership where all
parties invest either capital or a service, and each receives a share of the
profits as determined in the contract.
partnership where some aspects are equal but others are not, for example if two
partners each invest half of the capital but the profits are shared 60% and
40%. This would usually apply where one person was more involved with the
management or had more expertise than the other, for example.
partnership where all parties invest capital as opposed to services or other
things of tangible or intangible value.
shirkat-ul-‘aqd, shirkah-ul-‘aqd?A joint commercial
enterprise, where two or more parties share a mutual contract.
shirkat-ul-milk, shirkah-ul-milk?Joint ownership of a
property. This can come about either by choice (where two or more people decide
to embark on a venture, known as ikhtiari)
or it may be imposed on someone (for example, if a person inherits ownership
after a death, known as ghair
partnership of goodwill, whereby the parties purchase commodities and sell them
there and then, distributing the profits
to an agreed ratio.
used verb synonymous with short