State-owned and state-affiliated companies, as executive tools of governments in the implementation of public policies and economic development, have a special place in the legal system. These companies, having an independent legal personality, are also considered part of the government structure, which creates legal challenges in administrative litigation. The ambiguities in the legal status of these companies and how they are treated in litigation processes have made a detailed examination and comprehensive analysis of this issue necessary. This article examines the legal status of state-owned and state-affiliated companies in the process of administrative litigation. As independent legal entities, state-owned companies play a pivotal role in providing public services and implementing major government policies. However, the legal independence of these companies always faces complex challenges in administrative litigation. The present study, with the aim of analyzing the legal status of state-owned companies, first examines the concept and defines their legal nature, and then evaluates the legal frameworks governing the status of these companies with a comparative approach. Next, the processes related to filing lawsuits against these companies, the conditions for accepting complaints, and their defense rights are analyzed, focusing on the principles of fair trial. In addition, judicial procedures and decisions of administrative courts related to this area are examined, and challenges arising from conflicting laws, the complexity of the organizational structure, and the limitations of legal authority are evaluated. The results of the research show that state-owned companies, despite having independent legal personality, are sometimes considered as non-governmental public institutions.