Digital Signature Certificate (DSC)
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Few Examples of physical certificates are drivers’ licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver’s license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally.
The Information Technology Act, 2000 has provisions for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically.
As a best company secretary in kerala This is secure and authentic way to submit a document electronically. As such, all filings done by the companies/LLPs under MCA21 e Governance programme are required to be filed using Digital Signatures by the person authorised to sign the documents.
It consists of information about a person’s name, email address, certificate’s expiry date, pin code, sometimes house address and likewise. These are encrypted so that no one can access these illegally for some illegal purpose, only the owner or the company can have access to it. The DSCs are usually valid for one to two years. However, they can be renewed before the expiry period.
Digital Signature Certificate Advantages
- 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 DSC 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. 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.
Digital Signature Certificate Disadvantages
- Expiry: Digital signatures, like all technological products, are highly dependent on the technology it is based on. In this era of fast technological advancements, many of these tech products have a short shelf life.
- Certificates: In order to effectively use digital signatures, both senders and recipients may have to buy digital certificates at a cost from trusted certification authorities.
- Software: To work with digital certificates, senders and recipients have to buy verification software at a cost.
- Law: In some states and countries, laws regarding cyber and technology-based issues are weak or even non-existent. Trading in such jurisdictions becomes very risky for those who use digitally signed electronic documents.
- Compatibility: There are many different digital signature standards and most of them are incompatible with each other and this complicates the sharing of digitally signed documents.
Classes of DSC
- Class 1 Certificates: These are issued to individual/private subscribers and are used to confirm the user’s name and email contact within the database of the certifying authority.
- Class 2 Certificates: These are issued to the authorities signatories for the purpose of e-filing forms on the government portal, such as the Ministry Of Corporate Affairs (MCA) website, income tax website, GST website, etc. 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. Since CCA has discontinued Class 2 Certificates from 01.01.2021, every person who needs to sign Registrar of Companies (ROC) forms, customs filing, income tax forms, patent and trademark filing, GST applications and other government forms online must obtain Class 3 Certificates.
Type of DSCs
- Signature: A person can use Sign Certificates for signing a document. It can be affixed to a PDF, files or documents for GST returns submission, income tax returns, MCA online forms and other web based services. It validates the integrity of the document and authenticates the user’s identity. It assures the receiver that the mentioned is unaltered and the document is untampered.
- Encryption: A person can use the Encrypt Certificate to encrypt files, documents or other sensitive and confidential data. DSC encryption is for confidential documents and data. It helps enterprises and companies to encrypt and upload documents on web portal. This certificate can also be used to encrypt personal data and send it securely. Encrypt DSC is suitable for e-commerce documents, legal documents, e-tender filing documents and other confidential records.
- Signature and Encryption: A person can use the Sign and Encrypt Certificate for both signing and encrypting purposes. It is usually used for filing government documents, forms and applications. It is suitable for those users who need to maintain and authenticate the confidentiality of the data exchanged.
- DGFT DSC: DGFT Digital signature certificate (DSC) is a vital digital tool for online transactions and organization registration. It is used by Export and Import Organizations (EXIM Organizations) to facilitate foreign exchange activities.
- Organization DSC: for Individuals are verified against the personal details of the applicant, while Organizational DSCs are verified against the official records of the entity.
What is the importance of Digital Signature Certificates ?
The Ministry of Corporate Affairs has made Digital Signature Certificates mandatory for most legal documentation and registration purposes for both individuals and organisations. It is mandatory for companies to get DSCs so that they can get their accounts under audit while filing Income Tax Returns. It can be done by using a digital signature only best company secretary in calicut
Furthermore, if a company wants to get registered under GST, it is mandatory to authenticate the GST application through a digital signature only.
Who is required to get DSC?
DSC is affixed on all the documents filed on the Ministry of Corporate Affairs (MCA) portal. Online transactions such as Incorporation of a company or LLP, Income Tax e-filing, etc., are validated using DSC. The Controller of Certifying Authorities (CCA) has appointed Certifying Authorities (CA) for issuing DS.
Can we make 2 DSC of one person?
A person can have two DSCs for a single email ID. One for personal use and the other for professional purposes. However, a person can get a third DSC from another email ID.
Can we download DSC in old token?
As per the CCA Guideline 2.0 for Crypto Tokens, only new series of Token can be used to download certificate from July 1, 2023. So old series token cannot be used to download new certificate from July 1, 2023.
Documents required for submitting a DSC application
- Aadhaar card.
- PAN card.
- Passport-sized photo.
- Address proof.
- Mobile Number & Email ID
Conclusion
Digital signatures are a powerful tool in the digital world, providing assurance of data integrity, authenticity, and non-repudiation. By understanding how digital signatures work, their applications, and the process of creating and verifying them, individuals and organizations can enhance the security and trustworthiness of their digital interactions. Embracing digital signatures is crucial for safeguarding sensitive information, protecting against fraud, and ensuring reliable digital communication.
