Small Business Dilemma: Do We Need to Register Under the Shops and Commercial Establishment Act?

We are a proprietorship firm, and we have 7 employees. Should we cover ourselves under the Shops and Commercial Establishment Act? My auditor says that because we are fewer in number, we need not, but I am doubtful! Can anyone help, please?
Vinitha :)

You have to register even if it is 2 employees. Up to 9 employees, the Government fee is only 250 Rupees. However, if you go directly or indirectly through an agent, it will cost you 4 times more. (You understand what I mean)

The place for registration is Karmika Bhavan, Bannerghatta Road, Bangalore - 560 029. This is next to the Fire Station in Diary Circle.

We are establishing a depot at Siliguri, West Bengal. Where should we apply for registration under the Shops & Establishment Act?