Arbitration, as one of the most significant alternative dispute resolution mechanisms, has always been a subject of interest in various legal systems. One of the key challenges in this area is the feasibility of legal persons playing an arbitration role. In some countries, including Germany and Belgium, arbitration conducted by a legal person is accepted, while in the French and English legal systems only natural persons are recognized as authorized to arbitrate. This issue is also a matter of dispute in Iranian law, and different opinions have been presented regarding the permissibility or non-permissibility of arbitration conducted by legal persons. This article examines the concept of arbitration of legal entities and its difference from institutional arbitration, analyzing the pros and cons of this issue. It also examines the legal foundations, benefits, and challenges of accepting arbitration conducted by legal persons, and concludes by offering suggestions for improving the arbitration system. The results of this study show that although arbitration of legal entities can help increase efficiency and specialization in resolving disputes, challenges related to the independence, impartiality, and personality of the arbitrator are still considered major obstacles to its acceptance.