The Shop and Establishment Act is a state-based legislation implemented to regulate the conditions of work and to provide statutory obligations for employers and rights to employees in unorganized sectors of employment. It basically gives a "license to operate" for any commercial entity within a state.

Commonly known as Gumasta License in some states, this registration is mandatory for shops, restaurants, cafes, boarding houses, cinemas, theaters, public entertainment places, and any other commercial establishment. It regulates aspects like working hours, rest intervals, opening and closing hours, holidays, and leave policy.