Digital Signature Certificate
A Digital Signature Certificate (DSC) serves as a cryptographically secure key provided by certifying authorities (CAs) to verify and confirm the identity of the certificate holder. DSCs, which are primarily used in online scenarios, play a vital role in digitally signing documents, ensuring secure signature authentication, and validating signed copies.
Use of DSC in Digitally Signing a Document
Digitally signing a document involves encrypting it with a digital signature. Electronic documents, emails, and other digitally transmitted files integrate a digital signature certificate. These signatures serve to bolster security through encryption technology. Sensitive data, including the signature itself, undergoes encryption, ensuring its confidentiality. Upon verification, the encrypted information is decrypted and made accessible. We generate both digital and electronic signatures online and use them to securely sign documents.
Why are Digital Signature Certificates Critical for Compliance?
Individuals and entities are required to have their accounts audited and submit their income tax returns using a Digital Signature Certificate (DSC) as a mandatory step.
The Ministry of Corporate Affairs (MCA) mandates that companies submit all reports, applications, and forms exclusively through a DSC.
Additionally, companies can only obtain GST registration by verifying their applications with a digital signature.
Furthermore, DSCs are essential for filing all governmental applications, amendments, and related forms.
Type of Digital Signature Certificates
The following are the types of digital signature certificates:
- Sign DSC: Signing PDF files for submission on government websites is the most common application for this type of DSC. Using a DSC for signing ensures the integrity of both the signer and the signed data.
- Encrypt DSC: Encrypt Organizations primarily use DSCs on tender portals to encrypt documents and protect sensitive information. They are especially useful for documents with confidential data, ensuring the contained information remains protected.
- Sign & Encrypt DSC: This DSC provides the dual capability of both signing and encrypting data. Ideal for users who require authentication and confidentiality for shared information.
Format of Digital Signature
- USB Token: A DSC housed within a USB Token resembles a pen drive and connects to a PC for digital signature usage. Its major advantage is safeguarding the signature from misuse.
- PFX File: A DSC saved in a file format (.pfx). This allows users to circulate it via email, though at higher misuse risk.
Classes of Digital Signature Certificates
Three different types of DSCs are issued by certifying authorities:
1. Class 1 DSC
Class 1 Digital signatures are primarily for verifying association between email and an individual.
2. Class 2 DSC
Class 2 DSCs are issued for verifying a person’s identity against a pre-verified database. Useful for MCA filings, LLP registration, IT return filing, and more.
As of Jan 1, 2021, only Class 3 DSCs are issued. Existing Class 2 DSCs remain valid until expiry.
3. Class 3 DSC
The highest security level DSC used for e-tendering, e-bidding, e-auction, e-procurement, MCA, GST registration, IE Code, trademark registration, and more.
Used for:
- MCA e-filing
- LLP registration
- Patent & trademark e-filing
- e-Tendering
- Form 16
- e-Bidding
- Income Tax e-filing
- IE code registration
- e-Procurement
- GST application
- Customs e-filing
- e-Auction & more
Digital Signature vs. Digital Signature Certificate: Understanding the Variances
Digital signatures and certificates serve as crucial security protocols when it comes to signing electronic documents.
Digital Signature
A digital signature validates the legitimacy of a transaction or message. It ensures the sender is the original creator.
Digital Signature Certificate
DSCs operate similarly to ID cards issued by reputable authorities. These certificates provide:
- Details of Certifying Authority
- Subscriber’s public key
- Name & info of subscriber
- DSC validity period
Advantages of Digital Signature Certificates
- Authentication: DSCs provide strong evidence to validate identity in legal processes.
- Cost Efficiency: DSCs eliminate the need for physical presence in document signing.
- Enhanced Security: DSCs reduce risk of unauthorized alterations to documents or messages.
- Simplified Verification: DSCs ease verification by government agencies for business transactions.
- Time Efficiency: DSCs speed up paperwork by enabling one-click signing.
