In Islamic fiqh, the term musharakah is used for two meanings:

1- For two or more people to have a joint ownership regarding anything that can be owned (let it be wealth, assets or even a right). One of the binding rulings regarding this type of ownership is that none of the joint owners can make any use of the property without the other’s consent.[1]

2- A business contract in which the two or more parties agree to engage in a transaction with an asset they jointly own. What this contract entails is that both parties share profits and loss in proportion to how much of the asset they own. In this type of musharakah or partnership, each of the involved parties can use the asset to do business and yield profits. Like other Islamic transactions, this partnership is in need of a contract that has been signed or approved of by all parties. Imam Khomeini believes that it isn't necessary to verbalize the partnership formula and it is enough for the two parties to agree on the partnership for it to take place (mu’atat).[2]