Every small time hotel and shop has to secure the shop and establishment license for the purpose of carrying out business activities. However, this license would vary based on the requirements of the state. For example, the shops and establishments license for Rajasthan would be different from the procedure for shops and establishments in Uttar Pradesh. Hence it is crucial for the applicant to understand the Central rules as well as the state rules related to shops and establishments before making an application. Moreover, these rules regulate employees working in the organised sector as well as the unorganised sector. Different working conditions have to be complied by the applicant. Apart from this, the working conditions and terms of employment are also regulated by this license. Therefore, it is important to adhere to the requirements of the state.