A Digital Signature is a secure key (USB E-Token) that contains the signature in digital format and is issued for the purpose of validating & verifying a particular person or entity.
Who requires a Digital Signature?
It is required by individuals & organizations. The key (USB E-Token) is generated to the applicant in a secure medium and is used for signing official documents online.
When is Digital Signature required?
Digital Signature is required when a person or an entity requires performing statutory activities online like filing returns or business registrations etc.
Class 1
This class type is used to secure email communications and shall be issued for both business personnel and private individual use
Class 2
This class type is used for Incorporation of entities, Business Registrations, Income Tax Filing, etc
Class 3
This class type is used for participating in E-Tendering or E-Auctions
Platforms Where DSC is Required or Mandatory
Company Incorporation: The Digital Signature Certificate is mandatory if you are incorporating a Public Limited Company, Private Limited Company, Limited Liability Partnership or One Person Company
Obtaining Director Identification Number (DIN)Digital Signature Certificate (DSC) is mandatory while you are applying for DIN number
Ministry of Corporate Affairs (Compliances): If your business's annual turnover exceeds INR 60 Lakhs it is mandatory to verify your returns with Digital Signature Certificate
Income Tax: For all the individuals/professionals having an annual gross receipt of More than INR 25 Lakhs and for businesses with annual turnover of INR 1 Crore and above it is mandatory to file income tax with Digital Signature Certificate
Goods and Service Tax: If you are a business entity (other than the Sole Proprietorship) it is mandatory to have Digital Signature Certificate for both registrations and verifying GST Returns online
Import & Export Code: It is mandatory to have DSC while applying for an import & export code
Intelectual Property Rights: Digital Signature Certificate (DSC) is required for filing of Intelectual Property Rights like Trademark, Patent etc
E-Tendering: A Class 3 Digital Signature Certificate (DSC) is essential for companies and organizations that take part or intend to take part in E-Tendering processes on various Government sites
Employee Provident Fund: Employers in India can use Class 2 Gold or Class 3 Digital Signature Certificates for submitting their employee PF transfer claim form online.
Here are some key points about Digital Signature Certificates (DSC):
1. Authentication:
A digital signature is the digital equivalent of a handwritten signature or stamped seal, but it offers far more inherent security.
It verifies the sender's identity and ensures that the message or document was not altered during transmission.
2. Components:
Public Key: Used for verification and is freely available.
Private Key: Kept secret by the owner and used for signing documents.
3. Uses:
Online Transactions: Digital signatures are used in online transactions to ensure the authenticity of the sender and the data integrity.
Legal Documents: Digital signatures are legally valid in many countries and are used in contracts and other legal documents.
Government Transactions: Many government procedures and forms require digital signatures for authentication.
4. Digital Signature Certificate (DSC):
A Digital Signature Certificate (DSC) is a secure digital key issued by certifying authorities for the purpose of validating and certifying the identity of the person holding this certificate.
It contains information about the user's name, pin code, country, email address, date of issuance of the certificate, and the name of the certifying authority.
5. Certifying Authorities:
Certifying Authorities (CAs) are entities that issue digital certificates. These certificates validate the authenticity of the digital signatures of individuals or entities.
CAs are regulated by laws and standards to ensure their reliability and trustworthiness.
6. Classifications:
Class 1 DSC: Used for securing email communications. It confirms that the information in the application provided by the subscriber does not conflict with the information in well-recognized consumer databases.
Class 2 DSC: Used for company registration, IT Return E-filing, GST registration, etc. It is used for filing documents with the Registrar of Companies (ROC).
Class 3 DSC: This is the highest level where the person needs to present himself or herself in front of a Registration Authority (RA) and prove his/her identity.
Document Required For DSC Class 1
The exact documents required for obtaining a Class 1 Digital Signature Certificate (DSC) may vary slightly depending on the certification authority (CA) you choose. However, the basic documents commonly required for obtaining a Class 1 DSC typically include:
1. Proof of Identity (PoI):
For Individuals: Any one of the following documents can be submitted as PoI:
PAN Card
Passport
Aadhaar Card
Driving License
Voter ID card
2. Proof of Address (PoA):
o For Individuals: Any one of the following documents can be submitted as PoA:
Aadhaar Card
Passport
Driving License
Voter ID card
Utility bills (electricity bill, water bill, gas bill) not older than 3 months
Bank Statement attested by the bank
Ration Card
3. Passport-Size Photographs:
Typically, two passport-size photographs are required.
4. Email ID and Mobile Number:
You need to have an active email ID and mobile number as the DSC and related information are usually sent to the applicant electronically.
5. Application Form:
A duly filled and signed application form provided by the Certifying Authority needs to be submitted.
6. Self-Attested Documents:
Copies of the PoI and PoA documents should be self-attested by the applicant.
7. Organization Documents (If applicable):
If the DSC is being obtained for an organization, additional documents might be required, such as:
Certificate of Incorporation
Memorandum and Articles of Association
Board Resolution authorizing the applicant to obtain the DSC on behalf of the organization
8. Additional Documents (If Required by the CA):
Some CAs might have specific requirements or request additional documents based on their internal policies.
Key Differences Of DSC Class 1 , Class 2 and Class 3
Digital Signature Certificates (DSCs) in India are classified into different classes based on the verification process and the level of security provided. Here's a breakdown of the differences between Class 1, Class 2, and Class 3 DSCs:
1. Class 1 Digital Signature Certificate:
Verification Process: Class 1 DSC is the basic level of digital signature, and the verification is done against a pre-verified database.
Use Cases:
Email Communication: Class 1 DSC is used for securing email communication and conducting basic online activities.
No Organizational Validation: It doesn't validate the applicant's identity beyond their basic credentials.
2. Class 2 Digital Signature Certificate:
Verification Process: Class 2 DSC requires verification based on the applicant's information as available in the official government databases.
Use Cases:
Company/Business Transactions: Class 2 DSC is commonly used for filing income tax returns, GST filings, and other regulatory filings with government agencies.
Organizational Validation: Validates the identity of the applicant against the official databases
3. Class 3 Digital Signature Certificate:
Verification Process: Class 3 DSC involves a stringent verification process. The applicant needs to present themselves in front of a Registration Authority (RA) in person to prove their identity.
Use Cases:
High-Security Transactions: Class 3 DSC is used for high-security online transactions, especially in financial and sensitive government applications.
Legal Documents: Often used for signing legal documents, tenders, and participating in e-auctions.
Organizational and Individual Validation: Provides the highest level of assurance regarding the identity of the applicant.
Key Differences:
Verification Level: Class 1 has the lowest level of verification, Class 2 has intermediate verification, and Class 3 has the highest level of verification.
Use Cases: The class of the DSC determines the types of transactions and documents it can be used for.
Authentication Level: Class 3 DSC provides the highest level of authentication and is considered the most secure for sensitive transactions.
Applicant's Presence: Class 1 and Class 2 DSCs can usually be obtained without the physical presence of the applicant. However, for Class 3 DSC, the applicant must be present in person during the verification process.
When choosing a DSC class, it's important to consider the specific requirements of the transactions or activities you intend to use the digital signature for, as well as the level of security and authentication needed for those transactions.
