Number of employees

I am running a hotel in Nainital. I fact my elder brother was managing it for forty years and I have taken over only recently, some two years ago. We employ more than twenty employees, but in books show only ten. This practice forces us to do a lot of adjustments in our accounts. Somebody told my brother that if we show more than 10 employees then we will be covered under factory act and will have to do a lot of paperwork and subsequently a lot of headache. So we show only 10 employees and also provide EPF to them. But I really want to show all the employees we pay in our books and also provide the benefit of EPF to them. This will ease the pressure of doing adjustments in our accounts and also make me feel good. But I am afraid of doing much paper work. What do you suggest ? If we do what I think is a better thingto do, would we be covered by more acts and will be in a much complicated beaurocratic tangle ?