Shops and establishment act also known as Shop Act, is an act which regulates the working
conditions at all Shops and commercial establishments operating in a state. It is implemented by
state governments and have different amendments in different states.
Every Shop and commercial establishment conducting a business in a state needs to register with
the state government under Shop act before commencing a business. An inspector appointed by the
labour department of the state will check the necessary conditions under the act and then issue a
certificate of Shop act registration to the employer which has to be displayed in the Shop. It is also
called as shop act licence. Department of Labour of state government handles all the registrations
under this act.
Commercial establishment means an establishment which carries on, any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession and includes establishment of any legal practitioner, medical practitioner, architect, engineer, accountant, tax consultant or any other technical or professional consultant and also includes a society registered under the Societies Registration Act, 1866 (XXI of 1860), and a charitable or other trust, whether registered or not, which carries on whether for purposes of gain or not any business, trade or profession or work in connection with or incidental or ancillary thereto but does not include a factory, Shop, residential hotel, restaurant, eating house, theatre or other place of public amusement or entertainment.