This is a company in which two or more persons participate by their bodies only, without their capital. They share in that which they gain by their labour of whether an intellectual or physical nature. Examples of such labours are by craftsmen who share in work using their craft and divide that which they profit amongst themselves such as engineers, doctors, fishermen, porters, carpenters, car drivers and the like. It is not necessary that the partners be of the same craft, nor that they are all craftsmen. It is allowed that craftsmen of different crafts associate in an allowable (Halal) form of profit. Their partnership is valid (Sahih) just as if they were of the same craft. It is acceptable for the partners to perform a particular role in the company, so that one administers the company, another receives the money and the third works by his hands. This means that it is allowed for labourers in a factory to enter into partnership together, whether or not all of them understand the process of manufacturing. They can associate with other craftsmen, labourers, clerks and guards, and they can all become partners in the factory. However, it is stipulated that the work they associate together in for the purpose of making a profit be Halal. If the type of work is Haram, then to form a company undertaking such work is forbidden.

The profit in the company of bodies is distributed according to the agreement of the partners, whether equally or preferentially. For it is that which produced the profit and since it is allowed for the partners to differ in work, it is allowed that they differ in profit which is derived from the work. Each of the partners has the right to collect all of their wages from their employer, and to demand the price of the goods they manufactured from prospective purchasers. Similarly, the one who employed them or the one who bought goods from them has the right to pay all wages or to pay the whole price of the goods to anyone of them. He will be cleared of responsibility once He has made the payment to any one of them. Even if only one of the partners worked, the income is still divided amongst all of them, because the work is guaranteed by all of them together, and through their joint responsibility for the work. The wage in other words, deserves to be shared. In other words, the wage is for all of them as the responsibility is carried by all of them. None of them is allowed to deputise on his behalf a person as partner in the company or to employ a person to do the work on his behalf as a partner. He himself must be the one who handles the work directly as the contract stipulates this in this type of company. However, each partner is allowed to hire employees and such hiring would be by the company and for the company, even if only one of the partners handled the employment. The employee would then not be that partner’s own deputy, agent or employee. The disposal of each partner would be on behalf of the company, and every one of them is bound by the work accepted by his partner.

This form of company is allowed due to what Abu Dawud and al- Athram narrated from Abu ‘Ubaydah from his father, ‘Abdullah ibn Mas’ud, who said: “I shared with ‘Ammar ibn Yasir and Sa’ad ibn Abu Waqqas in whatever we gained at the day of Badr. Sa’ad came with two captives, while ‘Ammar and I brought nothing” and the Messenger of Allah (pbuh) consented to this to both of them. Ahmad ibn Hanbal said: “The Messenger of Allah (pbuh) associated them together.” This Hadith is an explicit evidence about the partnership of bodies of a group of the Sahabah to perform an action, which was fighting against the enemies, and to divide amongst themselves that which they gained in terms of booty if they won the battle. With respect to the rule of the booties being in disagreement with this partnership, this is not relevant to this Hadith because the rule of the booties was revealed after the battle of Badr. When this company of bodies occurred there was not yet any rule of booties. In addition, the rule of booties which was revealed after the battle did not abrogate the company which occurred before. Rather it clarified the shares of the benefactors, and the rule of the company of bodies remains as established by this Hadith.