Digital Signature Certificate: Importance, Benefits & Documents Required
Manual classification, storage, and retrieval of paper documents can result in long queues outside government offices and endless waiting periods. To make this process easier and simplified, the government has introduced an eGovernance initiative.
A Digital Signature Certificate is a part of this program which allows online registration and documentation. Read on to know what a digital signature certificate is, its meaning and its uses.
What Is a Digital Signature Certificate?
Digital Signature Certificate (DSC) is a highly secured digital key issued by a registered authority to substantiate the identity of the certificate's owner. DSC consists of the owner's name, pin code, email address, country, date of issuance, and name of the verifying authority.
What Are the Benefits of a Digital Signature Certificate?
DSC simplifies the process of identity authentication, but it has many other advantages. Following are the benefits of a DSC:
- Data Security: Digital Signature Certificate is as legal and valid as original paper documents. Also, digital documents cannot be altered or tampered with. Hence, it is safer and error-free. Also, this document comes with a password making it even more secure.
- Time Effective: A DSC holder doesn't have to be physically present in the business venue for authorisation. He can digitally sign the PDF files and transfer them even more quickly from any place and at any time.
- Efficiency: DSC makes the whole process of data authentication seamless and faster for businesses. It makes registering, verifying, and tracking data efficient and smooth.
- Environment Friendly: Using digital mode significantly reduces the use of paper and minimises waste production as well. It shows that a business intends to be environment-friendly.
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.
Furthermore, if a company wants to get registered under GST, it is mandatory to authenticate the GST application through a digital signature only.
What Are the Classes of DSC?
The purpose and type of the applicant are the parameters which decide the class of DSC one should obtain. There are three types of DSCs – Class1, Class 2, and Class 3. One can go through their details below:
Class 1 Certificate: This class of certificates is ideal for individuals or private subscribers. The purpose of it is to verify the name and email address of the concerned person with the database of the verifying authority.
Class 2 Certificate: Class 2 certificates are mandatory for a company’s signatory or director for the purpose of e-filing with the Registrar of Companies (ROC). ROC mandates it for the individuals who sign documents manually to submit returns with a Class 2 certificate.
Class 3 Certificate: Class 3 certificates are available to vendors all across India for the purpose of online participation in e-auctions and online tenders. It is mandatory for the vendors or participants to possess a Class 3 DSC to participate in the mentioned online activities.
What Are the Documents Required to Apply for DSC Application?
The documents applicants must submit for a Digital Signature Certificate are classified into 4 categories, namely:
1. Documents required for Indian Citizens
a. Identity proof (any one)
- Aadhaar Card (eKYC Service)
- PAN Card
- Post Office ID Card
- Passport
- Driving License
- Any government-authorised ID proof attested by the applicant
- Bank account passbook including applicant’s photograph, signature and attested by concerned Bank official
- Photo ID card authorised by the Ministry of Home Affairs of Centre (MHA) or State Governments
b. Address Proof
- Utility bills (not older than 2 months) like telephone bills, water bills, and electricity bills
- GST Registration Certificate
- Municipal Corporation or Property Tax receipt
- Any ID proof issued by the Government having the applicant’s name and address
- Voter ID Card
- Latest bank statement (not older than 2 months) attested by the financial institution
2. Documents required for Indian Companies
a. Organisation
- Copy of the applicant’s PAN Card
- Authenticated Signatory ID Proof like PAN Card, Organisational ID Card, etc.
- Copy of Authorised Signatory like Board Resolution or List of Directors, etc.
- Copy of latest bank statement, if the GST number is not provided
- Copy of Incorporation, if the GST number is not provided
- Copy of Organisational PAN Card, if the GST number is not provided
b. Partnership Company
- Copy of Partnership deed comprises details like number of partners or Authorisation Letter
- Copy of the applicant’s PAN Card
- Authenticated Signatory ID Proof like PAN Card, Organisational ID Card, etc.
- Copy of latest bank statement, if the GST number is not provided
- Copy of Organisational PAN Card, if the GST number is not provided
c. Proprietorship
- Copy of Business Registration Certificate – Shop and Establishment (S&E). etc.
- Copy of the applicant’s PAN Card
- Authenticated Signatory ID Proof like PAN Card, Organisational ID Card, etc.
- Copy of latest bank statement, if the GST number is not provided
d. Limited Liability partnership (LLP)
- Copy of Incorporation, if the GST number is not provided
- Proof of Authorised Signatory like list of Directors or Board Resolution, etc.
- Copy of the applicant’s PAN Card
- Authenticated Signatory ID Proof like PAN Card, Organisational ID Card, etc.
- Copy of Organisational PAN Card, if the GST number is not provided
- Copy of latest bank statement, if the GST number is not provided
e. AOP (Association of Persons)
- Copy of Incorporation, if the GST number is not provided
- Proof of Authorised Signatory like list of Directors or Board Resolution, etc.
- Copy of the applicant’s PAN Card
- Authenticated Signatory ID Proof like PAN Card, Organisational ID Card, etc.
- Copy of Organisational PAN Card, if the GST number is not provided
- Copy of latest bank statement, if the GST number is not provided
f. Non-Governmental Trust or Company
- Copy of Incorporation, if the GST number is not provided
- Proof of Authorised Signatory like list of Directors or Board Resolution, etc.
- Copy of the applicant’s PAN Card
- Authenticated Signatory ID Proof like PAN Card, Organisational ID Card, etc.
- Copy of Organisational PAN Card, if the GST number is not provided
- Copy of latest bank statement, if the GST number is not provided
3. Documents required for Foreign Nationals
a. Identity Proof
- Attested copy of the applicant’s passport
- Attested copy of Resident Permit Certificate in case the applicant is in India
- Attested copy of VISA in case the applicant is in a foreign nation
b. Address Proof
Attested copy of any other Government-authorised address proof
4. Documents required for Foreign Organisations
a. Identity Proof
- Attested copy of the applicant’s passport
- Attested copy of Resident Permit Certificate in case the applicant is in India
- Attested copy of VISA in case the applicant is in a foreign country
b. Address Proof
Attested copy of any other Government-authorised address proof
Digital Signature Certificate: Application Procedure
The application procedure of Digital signature certificate is simple and hassle-free. Follow these steps below if you wish to apply for a digital signature certificate:
Step 1: First, log in to a website of a certified authority that is licensed to issue Digital Certificate.
Step 2: Under the ‘Digital Certification Services’ option, click on the entity type - individual or organisation.
Step 3: Now, duly fill in the necessary details required in the form mentioning and re-checking all the details thoroughly before proceeding to the next step.
Step 4: After filling necessary details, affix a recent passport size photograph and sign under the declaration.
Step 5: Provide additional supporting documents as identity and address proofs and ensure they are attested by an officer. Make sure the seal and signature of the officer is clearly visible on these documents.
Step 6: Obtain a demand draft or a cheque for payment of DSC in the name of a Local Registration Authority where you must submit your application for verification process.
As you successfully go through all these above-mentioned steps, your application process of digital signature is complete.
What Is the Cost for a Digital Signature Certificate?
The total cost of a DSC includes the cost of a medium, which is a USB token used for storing digital signature files and linked documents. It is a one-time cost. In addition to this, there is also a cost of issuance of the DSC and the renewal cost after the initial period. The fees of Digital signature certificate vary from one provider to another and are based on the market.
What is the Validity of a Digital Signature Certificate?
Digital Signature Certificates generally have a validity of one or two years. These are renewable after the expiry of the initial period. One can pay the renewal cost to the provider after it expires.
With the advancement in technology, everything is getting modified into digital forms. The government has also decided to use this technology and introduced the Digital Signature Certificate to make the process of record storage and tracking easier and faster.
FAQs About Digital Signature Certificate
What is the difference between a Digital Signature and Digital Signature Certificate?
A digital signature can be a fingerprint or an attachment to ensure the authenticity of a document. On the other hand, a Digital Signature Certificate is a digital file that ensures a user's identity and secures authenticity.
Who is the certified authority to issue a Digital Signature Certificate?
A licensed Certifying Authority (CA) issues DSC. That means, any person or entity who has been given a license under Section 24 of the Information Technology Act, 2000 is eligible to issue, renew and revoke a Digital Signature Certificate.