This research tackles the issue of profit in sharing companies in terms of its conditions and distribution.

The research paper consists of an introduction, two chapters and a conclusion.

In the introduction I discuss the definition of both the profit and the sharing company

The first chapter focuses the conditions of profit in the sharing company.

The second chapter discusses the distribution of the profit in both the valid sharing company and the invalid sharing companies. It includes the points of view of the scholars, the reasons underlying their differences, their arguments and discussions,. I have included in the conclusion the main points reached in this research.

It is shown in this research that profit in the sharing company has specified conditions: (1) It should be stated explicitly in the contractual agreement, (2) It should be specified, and (3) It should be dispersed in the assets and not separated. The objectives of these conditions are to: stabilize the interaction between the two partners, to avoid dispute, and to achieve justice for both parties. It is also highlights the issue that the scholars are in full agreement that the profit in the invalid sharing company should be distributed in proportion with the contributions. But they are in disagreement as to the distribution in case of valid companies.

Some argue that the profit distribution should comply with the terms of the founding agreement. Others argue that it should be distributed in proportion with the contributions of the partners. It seems that the first point of view enjoy the majority among scholars, referring to the fact that the profit is a result of funding and work and because it is more likely to achieve justice between the partners, and because accepting the difference in profit distribution although they have contributed equal shares is restricted by the condition that the excess profit goes to the partner who worked or the partner who did most part of the work, and that the decisive characteristic in the work that calls for the excess profit is that it is stated in the agreement not the actual being of that work

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