Digital Signature Certificate
A Digital Signature Certificate is a secure digital key that is issued by the certifying authorities for the purpose of validating and certifying the identity of the person holding this certificate. Digital Signatures make use of the public key encryptions to create the signatures. A DSC contains information about the user’s name, pin code, country, email address, date of issuance of certificate and name of the certifying authority.
Digital Signature Certificates or DSC or Digital Signature are being adopted by various government agencies and now is a statutory requirement in various applications.
Digital Signature Certificate Details
Classes of DSC
- Class 1 Certificates - These are issued to individual/private subscribers and are used to confirm that the user’s name and email contact details from the clearly defined subject lie within the database of the certifying authority.
- Class 2 Certificates - These are issued to the director/signatory authorities of the companies for the purpose of e-filing with the Registrar of Companies (ROC). Class 2 certificate is mandatory for individuals who have to sign manual documents while filing returns with the ROC. However, from 01.01.2021, the Controller of Certifying Authority has instructed to discontinue Class 2 Certificates and Class 3 Certificates will be issued in place of Class 2 Certificates.
- Class 3 Certificates - These certificates are used in online participation/bidding in e-auctions and online tenders anywhere in India. The vendors who wish to participate in the online tenders must have a Class 3 digital signature certificate.
Importance of DSC
Individuals and entities who are required to get their accounts audited have to file their income tax return compulsorily using a digital signature. Furthermore, the Ministry of Corporate Affairs has made it mandatory for companies to file all reports, applications, and forms using a digital signature only.
Under GST also, a company can get registered only by verifying the GST application through a digital signature. The use of a digital signature is necessary even for filing all applications, amendments and other related forms.
No Filing of Returns
IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.
Types of Certificates
- Sign - Sign DSC can only be used for signing documents. The most popular usage of is signing the PDF file for Tax Returns, MCA and other websites. Signing via DSC gives the assurance of not only the integrity of the signer but also the data. It is proof of untampered and unaltered data.
- Encrypt - Encrypt DSC can only be used to encrypt a document, it is popularly used in the tender portal, to help companies encrypt the documents and upload. You could also use the certificate to encrypt and send classified information. Encrypt DSC is fit for e-commerce documents, legal documentation and sharing documents that are highly confidential and contains information that needs to be protected. We are selling Encrypt certificate as a standalone product as well.
- Sign & Encrypt - Our Sign & Encrypt DSC can be used for both signing and encrypting. It is convenient for users who need to authenticate and maintain the confidentiality of the information shared. Its usage includes filing government form and application.
Benefits of Digital Signature Certificate
Authentication
Helpful in authenticating the personal information details of the individual holder when conducting business online.
Reduced Cost and Time
Instead of signing the hard copy documents physically and scanning them to send them via e-mail, you can digitally sign the PDF files and send them much more quickly. A Digital Signature certificate holder does not have to be physically present to conduct or authorize a business.
Data Integrity
Documents that are signed digitally cannot be altered or edited after signing, which makes the data safe and secure. The government agencies often ask for these certificates to cross-check and verify the business transaction.
Authenticity of Documents
Digitally signed documents give confidence to the receiver to be assured of the signer’s authenticity. They can take action on the basis of such documents without getting worried about the documents being forged.