There are two types of shields: particle shields and ray/energy shields. Both are needed for complete protection, and generally all military ships are equipped with shields of both types.
Particle shielding protects against missiles and space debris, but it must be temporarily turned off if the vessel wishes to fire missiles of its own or launch or receive shuttlecraft. Aside from those exceptions, particle shields are on at all times.
For game purposes, any time a ship has to lower its particle shields, it is considered to have a hull code −2D lower than the listed code.
Ray/energy shielding protects strictly against lasers or other energy beams; it does not stop matter. Ray shields require large amounts of energy to maintain, so most vessels only employ them when going into combat.
Since this shielding is useful only in combat, its application is somewhat restricted. Non-Imperial vessels must apply for permits to carry ray/energy shielding and show just cause for why they need it. Fear of piracy is usually enough to secure standard permission.
Source: REUP:418