Zakat on Limited Companies

Limited companies are separate legal entities. Shareholders pay Zakat on the zakatable portion of the company's assets, not the company itself.

If you own a limited company, the company does not pay Zakat—you do. Calculate Zakat on your share of the company's zakatable assets (cash, stock, receivables).

How Limited Companies Work for Zakat

The company is separate from you. A limited company is a separate legal entity. However, you own shares in it, so you are responsible for Zakat on the zakatable portion of the company's wealth that corresponds to your ownership.

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