Shop and Establishment is the most important license in India which is regulated by the Department of Labour. It was established in the year 1953 and is defined state-wise which means that the Shops and Establishment Act differs in every state.

This act is not only applicable to commercial establishments, but also charitable trusts, educational institutions which work for profit, banking, insurance, stock brokerage, society, amusement parks, etc. Excluding factories.

Shop and Establishment Act regulates the wages of workers, working hours, holidays, leaves, term of service, working conditions of labourers working in the above said establishments. The establishments that come under the scrutiny of this act mandatorily have to get the Shop and Establishment Registration done within 30 working days of the commencement of work.