Question
I raised capital for a business that hasn't started trading — is zakat due on that idle capital?
Ruling (Fatwa)
Short answer: Yes, zakat is due on idle business capital if it reaches the nisab (minimum threshold) and a full lunar year (hawl) passes over it, even if the business has not yet started trading. The capital is considered wealth owned for the purpose of trade ('urud al-tijarah), and the general obligation of zakat applies to all wealth that meets the conditions.
Details: The obligation of zakat on wealth is established in the Qur'an and Sunnah. The provided hadiths affirm the general duty: Sahih al-Bukhari 1468 (P1) shows the Prophet's order to collect zakat, and Sahih Muslim 987a (P12) warns of punishment for those who withhold it. The nisab for silver is five awaq (about 595 grams), and for gold is similar; Sahih al-Bukhari 1454 (P3) and 1459 (P10) state that no zakat is due on less than five awaq of silver or five awsuq of dates, establishing the principle of nisab. For cash capital intended for trade, the same rules apply: once it reaches nisab and a full year passes, zakat must be paid at 2.5%. The fact that the business has not started trading does not exempt the capital; it remains wealth under the owner's control and is subject to zakat.
Evidence:
1. Sahih al-Bukhari 1468 (P1) – The Prophet ordered collection of zakat, indicating its obligation on wealth.
2. Sahih al-Bukhari 1454 (P3) – Nisab is set: no zakat below five awaq of silver.
3. Sahih al-Bukhari 1459 (P10) – Confirms nisab for silver, dates, and camels.
4. Sahih Muslim 987a (P12) – A severe warning for those who fail to pay zakat on gold and silver.
[Disclaimer: This is a general ruling based on available evidence. For complex situations involving mixed assets or business structures, please consult a qualified scholar.]
References
Hadith
Sahih al-Bukhari 1468; Sahih al-Bukhari 1405; Sahih al-Bukhari 1459; Sahih Muslim 987a
Fiqh
General principles from Sahih al-Bukhari and Sahih Muslim; consensus of scholars (see e.g. Ibn Baz, al-Uthaymin).