My friend wants to invest with me Should I give him a fixed profit or not?

الاستفتاء

I have a phone shop and my friend wants to invest one lakh with me (i.e. in my shop). Is this okay for me to do? And how much profit should I give him? How should I give him? Should I give him a fixed profit or not? Please guide me regarding this issue.

الجواب حامدا و مصلیا

If the questioner receives 1 lakh from his friend and forms a partnership with him in his entire shop or a certain portion of it, then they stipulate (for each of them) a percentage of the profit, and in the case of loss, both of them bear the loss in accordance to their portion of the capital, then as per Shari’ah, it is permissible to do such.