Website hosting as a reseller

Category: 

Business Dealings & Money Matters

According to Madhhab: 

Hanafi

Reference: 

1440-020

Question:

I needed to find out regarding the permissibility of making a profit on website hosting as a reseller.
A reseller pays his host for the hosting and then resells this same hosting to his client for a profit.
Is this permissible?

Answer:

The general rule when it comes to subletting is that it is not permissible to sublet for a profit. If this is done then any profit made should be given away in Sadaqah. However, if you have hired the item initially in one currency (e.g. Dollars) and then charged your clients in another currency (e.g. Rands) or provided some extra item or service then it would be permissible to make a profit. When looking at Web hosting it is defined as the process of renting space and bandwidth through a company so that your website will be online. A reseller of such a service would not only be responsible for providing the access to the rented space and bandwidth but he will be responsible for interfacing with his customer base. Since this interfacing is the duty of the resellers. It would be permissible to charge a profit as the extra amount would be in lieu of the service you are providing.

AND ALLAH TAƁALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST

ANSWERED BY: Ebrahim Patel
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B.
Islamic Date: 12 Muharram 1440
English Date: 22 September 2018

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