Islamic Business Contracts
Shariah compliant contract templates for your business. Murabaha, Ijarah, Mudarabah, Musharakah, Wakalah, Kafalah, and Rahn. Customized to your transaction.
Shariah Compliant Contracts for Your Business
Every business transaction needs a contract. A contract defines the rights and obligations of each party. It specifies what is being exchanged, when, and for what price. A well drafted contract prevents disputes. A poorly drafted contract creates confusion and leads to litigation.
For Muslim business owners, contracts have an additional requirement. They must be Shariah compliant. The contract cannot include interest which is riba. It cannot include excessive uncertainty which is gharar. It cannot involve prohibited goods or services. It must follow the rules of Islamic commercial law.
Our Islamic Business Contracts service provides Shariah compliant contract templates for common business transactions. We offer contracts for Murabaha which is cost plus sale. Ijarah which is leasing. Mudarabah which is profit sharing. Musharakah which is joint venture. Wakalah which is agency. Kafalah which is guarantee. Rahn which is pledge. And many others.
Each contract is drafted by our legal team and reviewed by our Shariah scholars. The language is clear and practical. The contracts are designed to be enforceable in Hong Kong courts while fully compliant with Islamic law. We customize each contract to your specific transaction. We provide guidance on how to execute the contract properly. We also offer training for your staff on how to use the contracts correctly.
Do not rely on generic templates you find online. Many are not Shariah compliant. Many are not enforceable in Hong Kong. Get professional contracts that protect your business and respect your faith.
What's Included
Murabaha Contract
Murabaha is a cost plus sale contract. It is the most common contract for asset financing. The seller discloses the cost of the asset to the buyer. The seller adds a profit margin. The buyer pays in installments. This contract is Shariah compliant because it is a sale of an asset, not a loan with interest. Our Murabaha contract template includes all necessary clauses including asset description, cost disclosure, profit margin calculation, payment schedule, late payment terms, and dispute resolution. Suitable for equipment financing, vehicle financing, and inventory purchases.
Ijarah Contract
Ijarah is a leasing contract. The lessor owns the asset and leases it to the lessee for a period of time. The lessee pays rent. At the end of the lease, the asset returns to the lessor unless there is a separate purchase agreement. Ijarah is Shariah compliant because the lessor retains ownership and risk of the asset. Our Ijarah contract template includes clauses for lease term, rent amount, maintenance responsibilities, insurance requirements, late payment terms, and end of lease options. Suitable for equipment leasing, vehicle leasing, and real estate leasing.
Mudarabah Contract
Mudarabah is a profit sharing contract. One party provides capital. The other party provides labor and management. Profits are shared according to an agreed ratio. Losses are borne solely by the capital provider unless the manager was negligent. Mudarabah is Shariah compliant because risk is shared. Our Mudarabah contract template includes clauses for capital amount, profit sharing ratio, management authority, reporting requirements, distribution of profits, and treatment of losses. Suitable for investment partnerships and project financing.
Musharakah Contract
Musharakah is a joint venture contract. All partners contribute capital. All partners may participate in management. Profits are shared according to an agreed ratio. Losses are shared in proportion to capital contribution. Musharakah is Shariah compliant because all partners share risk. Our Musharakah contract template includes clauses for capital contributions, profit sharing ratio, management structure, decision making processes, distribution of profits, treatment of losses, and exit mechanisms. Suitable for business partnerships, real estate development, and project financing.
Wakalah Contract
Wakalah is an agency contract. The principal appoints an agent to act on their behalf. The agent is entitled to a fee. The agent must act in the best interest of the principal. Wakalah is Shariah compliant because the agent is not guaranteed a profit. Our Wakalah contract template includes clauses for scope of authority, fee structure, reporting requirements, liability for negligence, and termination conditions. Suitable for appointing sales agents, procurement agents, and investment managers.
Kafalah and Rahn Contracts
Kafalah is a guarantee contract. One party guarantees the obligation of another party. Rahn is a pledge contract. One party pledges an asset as security for a debt. Both are Shariah compliant as long as no interest is charged. Our Kafalah and Rahn contract templates include clauses for guarantee amount, guarantee duration, recourse rights, pledged asset description, custody arrangements, and enforcement procedures. Suitable for trade finance, bank guarantees, and secured lending.
How It Works
Select Contract Type
Tell us what transaction you need a contract for. Asset purchase or sale? Equipment lease? Investment partnership? Agency appointment? Guarantee arrangement? We will recommend the appropriate Islamic contract type.
Provide Transaction Details
Complete our contract worksheet. Provide the specific details of your transaction including party names, asset description, amounts, timelines, and any special conditions. The more detail you provide, the better we can customize your contract.
Contract Drafting
We draft your customized contract within three to five business days. The contract follows our Shariah compliant template but includes your specific transaction details. We also add any special clauses you request.
Review and Revisions
You review the draft contract. You may request changes. We provide up to two rounds of revisions at no additional cost. We also explain any clauses you do not understand.
Execution Guidance
We provide guidance on how to execute the contract properly. How many copies do you need? Who needs to sign? Do you need witnesses? Do you need notarization? We answer all your questions.
Ongoing Support
After you execute the contract, we remain available for questions. If you need to amend the contract later, we can help. If you need additional contracts for other transactions, we offer discounted rates for repeat clients.
Frequently Asked Questions
This is the most common question. A conventional loan involves the lender giving money to the borrower. The borrower pays interest on the money. That is riba and it is prohibited. Murabaha is different. In Murabaha, the seller does not give money to the buyer. The seller buys an asset from a third party. The seller then sells that asset to the buyer at a marked up price. The buyer pays in installments. The buyer is paying for an asset, not for the use of money. The markup is profit on a sale, not interest on a loan. This difference is fundamental. It makes Murabaha Shariah compliant while conventional loans are not. Our Murabaha contract clearly documents the asset purchase and sale so there is no confusion.
Yes our contracts can be used for international transactions. However you must consider the governing law and jurisdiction clauses. Our standard contracts are governed by Hong Kong law and disputes are resolved in Hong Kong courts. For international transactions, you may want to choose a different governing law or a different dispute resolution mechanism like arbitration. We can customize the governing law and jurisdiction clauses for you. We can also help you translate the contract into other languages if needed. Additional fees may apply for these customizations. Contact us to discuss your international transaction requirements.
Yes our contracts are drafted to be enforceable in Hong Kong courts. We work with Hong Kong solicitors to ensure our contracts comply with Hong Kong contract law. The Contracts Ordinance and the common law of Hong Kong recognize freedom of contract. As long as the contract terms are clear and both parties consent, the contract is generally enforceable. Our Shariah compliant clauses are not inconsistent with Hong Kong law. The only potential issue is if a clause is contrary to public policy. We avoid such clauses. We have had clients successfully enforce our contracts in Hong Kong courts and through arbitration. We can provide references upon request.
Yes we offer contract review services. If you already have a contract drafted by your lawyer or by a counterparty, we can review it for Shariah compliance. We will identify any clauses that may be problematic from an Islamic perspective. We will explain why each problematic clause is an issue. We will suggest alternative language. We cannot provide legal advice because we are not lawyers. But we can provide Shariah advice. You should have your lawyer review our recommendations and implement them. Contract review fees are based on the length and complexity of the contract. Contact us for a quote.
Yes we offer standard contract templates for purchase at a lower price. The templates are generic. They do not include your specific transaction details. You fill in the blanks yourself. This is suitable for businesses that use the same transaction structure repeatedly. For example if you are a car dealer using Murabaha for every sale, you can buy our Murabaha template once and reuse it. You simply fill in the car details and payment schedule for each customer. Template prices range from HKD 500 to HKD 2,000 depending on the contract type. Customized contracts with our assistance are more expensive but also more tailored to your specific needs. Contact us to purchase templates.
Our pricing for customized contracts is based on the complexity of the transaction. A simple Murabaha contract for a standard asset purchase costs HKD 1,500 to HKD 2,500. An Ijarah contract for equipment lease costs HKD 1,500 to HKD 2,500. A Mudarabah contract for an investment partnership costs HKD 2,500 to HKD 4,000 because it is more complex. A Musharakah contract for a joint venture costs HKD 3,000 to HKD 5,000. A comprehensive suite of contracts for a complex transaction may cost more. We provide a fixed price quote before you engage us. You know exactly what you will pay. Discounts are available for multiple contracts purchased together.