Safula

Q: A person asks about selling company names. A businessman purchases these names to invest in them and to make profits out of them. The real owner of the company name has no share in the profits or the money paid for the business transaction. Here, the questioner wants clarification regarding the legal decision on this practice. May Allah protect you and grant you success. Peace and Blessings of Allah be upon you!

A: It is not permissible to sell a name for other companies to use in purchasing shares in companies. (Part No. 23; Page No. 465) A name has no monetary value or equivalent. Besides, this is a fraudulent act involving lying as the purchaser gets this name more shares than what he really deserves.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.