The way many startups work is that they burn through money long before they make revenue. Investors put in millions and the company often operates at a loss for 3-8 years, before they suddenly IPO for billions.

So let's take this for an example:

Money in the bank = $3,000,000

Revenue for the year = $150,000

Costs for the year = $400,000

Profit = -$250,000

How much zakat would have to be paid on this? Although the company is not making money, there is a lot of money in the accounts.

What if some of the directors, investors, or major shareholders are non-Muslim? They would not appreciate so much being spent on zakat.


1 Answer 1


Zakat is an ibadah and is only obligatory on Muslim individuals. Each Muslim shareholder is responsible for paying his own Zakat from his share. Making a profit or loss on the money is irrelevant. If he doesn't have enough liquid money he will sell some shares to get the money to pay his Zakat. Zakat is not deducted from wealth of non-Muslims.

See: https://islamqa.info/en/69912

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