Registering a company in Pakistan offers legal protection, credibility, and business growth opportunities compared to operating informally. A registered company benefits from limited liability, protects personal assets and can open a corporate bank account for professional transactions. It also gains access to tax benefits, government support, and funding opportunities. Additionally, registered businesses can enter contracts, bid for tenders, and attract investors. They can also legally hire employees with benefits, ensuring long-term stability. In contrast, informal businesses face legal risks, limited growth, and difficulty securing financial services or partnerships.