diff --git a/bpdm-gate/src/main/kotlin/org/eclipse/tractusx/bpdm/gate/entity/LegalEntity.kt b/bpdm-gate/src/main/kotlin/org/eclipse/tractusx/bpdm/gate/entity/LegalEntity.kt
index fbaf4e8ce..e59df1589 100644
--- a/bpdm-gate/src/main/kotlin/org/eclipse/tractusx/bpdm/gate/entity/LegalEntity.kt
+++ b/bpdm-gate/src/main/kotlin/org/eclipse/tractusx/bpdm/gate/entity/LegalEntity.kt
@@ -38,8 +38,8 @@ class LegalEntity(
     @Column(name = "name_shortname")
     var shortName: String?,
 
-    @Column(name = "legal_form_id", nullable = false)
-    var legalForm: String?,
+    @Column(name = "legal_form_id")
+    var legalForm: String? = null,
 
     @Column(name = "data_type")
     @Enumerated(EnumType.STRING)
diff --git a/bpdm-gate/src/main/resources/db/migration/V4_0_0_5__make_legal_form_id_optional.sql b/bpdm-gate/src/main/resources/db/migration/V4_0_0_5__make_legal_form_id_optional.sql
new file mode 100644
index 000000000..ba1b527e5
--- /dev/null
+++ b/bpdm-gate/src/main/resources/db/migration/V4_0_0_5__make_legal_form_id_optional.sql
@@ -0,0 +1,3 @@
+-- Description: Make 'legal_form_id' column optional in the 'legal_entities' table
+-- Alter the 'legal_form_id' column to allow NULL values
+ALTER TABLE legal_entities ALTER COLUMN legal_form_id DROP NOT NULL;