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The phrase "third entity" is correct and usable in written English.
It can be used when referring to an additional party or component in a discussion or analysis, often in contexts involving relationships or interactions among multiple parties.
Example: "In the negotiation, we must consider the interests of the third entity involved in the agreement."
Alternatives: "third party" or "additional entity".
Exact(39)
It becomes a third entity.
Combining the two, however, to create a distinct third entity creates something singularly American in our minds.
Working with Kaufman, Hart soon realized that collaboration was a three-way process and that the key decisions were dictated by the third entity, the audience.
He rented it from another company and had stopped paying his rent because, he argued in court papers, a third entity held claim to the building.
Within this system there is the constant backdrop of different aspirations: Republika Srpska seeking greater autonomy, Croat parties angling for a third entity, and several Bosniak parties hoping for a more centrally governed country.
Bosnian Croats will continue to work towards the creation of a third entity in the country with a Bosnian Croat majority under the perception that their ethnic identity is under threat.
Similar(21)
The second entity, not quite under the author's control, comes to set the terms which make possible the first entity.
While the state is now stepping into the fray, it is not the first entity to take action.
The mistrust between advertisers and publishers has given rise to a fourth entity in this ecosystem: ad counters.
There are already three investigations under way, and today a fourth entity -- still undefined -- joined the fray.
The second entity, to be called Gecina, will include the company's French nonrental real estate assets and some of its Spanish office rental business.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com