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A Digital Signature (DSC) is an electronic version of a physical signature. In India, digital signatures are utilised for online transactions such as filing annual returns, incorporation of a company or LLP, income tax e-filing, and e-tenders.
The type of applicant and the purpose for which the Digital Signature Certificate is obtained defines the kind of DSC one must apply for depending on the need. There are three types of Digital Signature certificates issued by the certifying authorities.
These are sent to individual/private subscribers and are used to verify that the user's name and email address from a specific subject are stored in the certifying authority's database.
These are given to the company's director/signatory authority for the purpose of electronic filing with the Registrar of Companies (ROC). Individuals who must sign manual papers while submitting returns with the ROC must have a Class 2 certificate. However, beginning of January 1, 2021, the Controller of Certifying Authority has ordered that Class 2 Certificates be phased out and replaced with 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.
Helpful in authenticating the personal information details of the individual holder when conducting business online.
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.
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.
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.
Individuals and businesses who are required to have their accounts audited must use a digital signature to file their income tax returns. Furthermore, the Ministry of Corporate Affairs has made it essential for businesses to use a digital signature to file all reports, applications, and forms.
A company can also register for GST by using a digital signature to validate the GST application. Even for filing all applications, amendments, and other associated paperwork, a digital signature is required.
It is a physical signature in an electronic format.
A Digital Signature can be obtained by any person (Indian Citizen and Foreign Nationals) and any type of business entity (Partnership, LLP, Company, Trust and others).
A Digital signatures can be obtained within 1-3 working days from date of submitting the application along with the required Documents.
No, physical verification is not required for issuing a Digital Signature.
To obtain a Digital Signature, application form for the Digital Signature must be submitted along with a self-attested copy of the applicant’s identity proof and address proof, Pan Card and also along with photograph of applicant.
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