What is the digital signature Certificate?
Digital Signature Certificates (DSC) are the digital form of signature similar to physical or paper certificates. Some of the Examples of physical certificates are drivers’ licenses, passports or membership cards.
According to the Ministry of Corporate Affairs of India, Digital Signature Certificates (DSC) are the digital format of physical or paper certificates. Certificates provide as an identity proof of an individual for some purpose.
Digital Certificates use Public Key Infrastructure meaning data that has been digitally signed or encrypted by a private key can only be decrypted by its corresponding public key. A digital certificate is an electronic “credit card” that establishes your credentials when doing business or other transactions on the Web.
Digital Signature Certificate can be used for the following reasons:
- For MCA (ROC)
- For Income Tax
- For EPF
- For Foreign trade
- For E-Tender
- For Trademark
- For E-Ticketing
- For Document Signer
- For Director KYC
- For multiple purposes
Benefits of Digital Signature Certificate
- Documents get Authorized: Digitally signed documents endure authority to the person to be guaranteed of the signer’s authenticity. They can act based on such documents without getting worried about the documents were false.
- Data safety: Documents that are signed digitally cannot be edited after signing, which makes the data safe and secure. The government frequently asks for DSC to cross-check and verify the business transaction.
- Decreases cost and time: Rather than signing the hard copy documents physically and scanning them to send them via e-mail, one can digitally sign the PDF files and send them much more quickly. The person having a Digital Signature certificate does not have to be physically present to conduct business.
- Workflow Performance: With lesser delays, digital signatures assure better efficiency in workflow. Managing and tracking documents are made easier, with less effort.
- Business Performance: The costs engaged in incorporating digital signatures into the work processes are somewhat small, compared to their advantages.
Classes of DSC:
There are three types of Digital Signature certificates issued by the certifying authorities:
- Class 1 Certificates: These are issued to individual subscribers and are used to verify that the name and email contact information from the clearly specified subject lies within the database of the certifying authority.
- Class 2 Certificates: These are issued to the director authorities of the companies for the purpose of e-filing with the Registrar of Companies (ROC). Class 2 certificate is mandatory for individuals who must sign manual documents while filing returns with the ROC.
- Class 3 Certificates: These certificates are used in online participation in e-auctions and online tenders anywhere in India. The dealers who want to take part in the online tenders must have a Class 3 digital signature certificate.