Selling Goodwill

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Q: I run a medical practice that I started personally 12 years ago. I am now looking for a partner or someone to buy into the practice. Is it permissible to sell the practice for a price, understanding that there is nothing physical to sell? I think the sale amounts to a royalty or goodwill.

A.
If you are not selling anything tangible, then it will be goodwill which is not permissible. A way out is to have some equipment, furniture, etc. in the practice which you can attach a price to (according to your wish) and then sell the practice. In this way you can sell it for your desired price and the purchaser will be buying something tangible.

Allah Ta'aala knows best.

Moulana Yusuf Laher
Checked by: Mufti Siraj Desai