A Legal Entity is an organization or individual recognized by law with the rights and responsibilities to enter contracts, own assets, hire employees, and comply with regulations. Businesses across industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) operate as legal entities, such as private limited companies, partnerships, sole proprietorships, or corporations, ensuring legal protection and structured business operations.

For companies managing contract workers, gig employees, apprentices, and blue-collar workforce, establishing a legal entity helps in ensuring compliance with labor laws, managing vendor contracts, handling payroll legally, and protecting business interests. A properly structured legal entity enhances credibility, risk management, and operational transparency, enabling businesses to scale efficiently and maintain regulatory compliance.