diff --git a/e2e/client-legal-form-search.spec.ts b/e2e/client-legal-form-search.spec.ts
new file mode 100644
index 000000000..5ea887d44
--- /dev/null
+++ b/e2e/client-legal-form-search.spec.ts
@@ -0,0 +1,47 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+/**
+ * Regression coverage for #534: the main /clients list hardcoded legalForm 1 (Person) when
+ * calling getClients, which silently excluded Entity clients from the list. Seeded through the
+ * API against a real Fineract, because the bug was in what the app asks the backend for — a
+ * page.route() mock would echo back whatever list we hand it and could never have caught this.
+ *
+ * npx playwright test e2e/client-legal-form-search.spec.ts --project=backend --workers=1
+ */
+
+import { test, expect } from './fixtures';
+import { login } from './utils/fineract-login';
+import { createApiContext, seedEntityClient } from './utils/seed-api';
+
+test.describe('Client list: legal form filtering', () => {
+  test('an entity client appears in the main client list', async ({ page }) => {
+    await login(page);
+    const api = await createApiContext();
+    let entity;
+    try {
+      entity = await seedEntityClient(api);
+    } finally {
+      await api.dispose();
+    }
+
+    await page.goto('/clients');
+    await expect(page.getByText(entity.displayName)).toBeVisible({ timeout: 10_000 });
+  });
+});
diff --git a/e2e/utils/seed-api.ts b/e2e/utils/seed-api.ts
index 8d179ae12..9f2bf4e0e 100644
--- a/e2e/utils/seed-api.ts
+++ b/e2e/utils/seed-api.ts
@@ -308,6 +308,24 @@ export async function seedClient(
   return { clientId, firstName, lastName, displayName: `${firstName} ${lastName}` };
 }
 
+export async function seedEntityClient(
+  api: APIRequestContext,
+  namePrefix = 'E2ESeedEntity',
+  officeId = 1,
+): Promise<SeededClient> {
+  const fullname = `${namePrefix}${seedSuffix()} Pvt Ltd`;
+  const { clientId } = await post<{ clientId: number }>(api, '/clients', {
+    officeId,
+    fullname,
+    legalFormId: 2,
+    active: true,
+    activationDate: fineractDate(),
+    dateFormat: DATE_FORMAT,
+    locale: LOCALE,
+  });
+  return { clientId, firstName: fullname, lastName: '', displayName: fullname };
+}
+
 export interface SeededFixedDeposit {
   accountId: number;
   clientId: number;
diff --git a/playwright.config.ts b/playwright.config.ts
index 822a10599..028ff8105 100644
--- a/playwright.config.ts
+++ b/playwright.config.ts
@@ -59,6 +59,7 @@ const BACKEND_SPECS = [
   'rbac-backend-restricted-user.spec.ts',
   'rbac-multi-permission.spec.ts',
   'client-transfer.spec.ts',
+  'client-legal-form-search.spec.ts',
   'deposit-account-servicing.spec.ts',
   'deposit-product-configuration.spec.ts',
   'full-demo.spec.ts',
diff --git a/src/app/features/clients/clients-list.component.test.ts b/src/app/features/clients/clients-list.component.test.ts
new file mode 100644
index 000000000..e8fdfaa0d
--- /dev/null
+++ b/src/app/features/clients/clients-list.component.test.ts
@@ -0,0 +1,63 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+import { createSpyObj, SpyObj } from '../../testing/mocks';
+import { provideNoopAnimations } from '@angular/platform-browser/animations';
+import { ComponentFixture, TestBed } from '@angular/core/testing';
+import { Router } from '@angular/router';
+import { of } from 'rxjs';
+
+import { ClientsListComponent } from './clients-list.component';
+import { ClientService } from '../../api';
+import { provideIonicTesting } from '../../testing/ionic-testing';
+import { provideTranslateTesting } from '../../testing/i18n-testing';
+
+describe('ClientsListComponent', () => {
+  let fixture: ComponentFixture<ClientsListComponent>;
+  let serviceSpy: SpyObj<ClientService>;
+
+  beforeEach(async () => {
+    serviceSpy = createSpyObj(['getClients']);
+    serviceSpy.getClients.mockReturnValue(
+      of({ totalFilteredRecords: 0, pageItems: [] }) as unknown as ReturnType<
+        ClientService['getClients']
+      >,
+    );
+
+    await TestBed.configureTestingModule({
+      imports: [ClientsListComponent],
+      providers: [
+        provideNoopAnimations(),
+        provideIonicTesting(),
+        ...provideTranslateTesting(),
+        { provide: ClientService, useValue: serviceSpy },
+        { provide: Router, useValue: createSpyObj(['navigate']) },
+      ],
+    }).compileComponents();
+
+    fixture = TestBed.createComponent(ClientsListComponent);
+    fixture.detectChanges();
+  });
+
+  it('does not filter the main list by legal form', () => {
+    // 13th positional argument to getClients — see #534.
+    const legalForm = serviceSpy.getClients.mock.calls[0][12];
+    expect(legalForm).toBeUndefined();
+  });
+});
diff --git a/src/app/features/clients/clients-list.component.ts b/src/app/features/clients/clients-list.component.ts
index 506261479..215218f44 100644
--- a/src/app/features/clients/clients-list.component.ts
+++ b/src/app/features/clients/clients-list.component.ts
@@ -231,7 +231,7 @@ export class ClientsListComponent {
               orderBy,
               sortOrder,
               false,
-              1,
+              undefined,
             )
             .pipe(
               tap(() => this.hasError.set(false)),