It is mandatory for directors of companies, bank managers and exporters to have digital signatures. They could soon become mandatory for sole proprietorships and partnerships as well as for everyone doing business with government
Digital signatures are the online equivalent of the physical signature that you use to authenticate communication, transactions, agreements, etc. In its pure form, a digital signature is software residing on your personal computer, notebook, or email-capable handheld. What it does is to encrypt and identify electronic documents on your behalf; deeming it secured, authentic and legally valid.
A Digital Signature Certificate, like hand written signature, establishes the identity of the sender filing the documents through the internet, which the sender cannot revoke or deny. It is a set of encrypted data used with the same validity of a paper signature, but on emails, electronic documents and online transactions. It ensures that no alterations are made to the data once the document has been digitally signed. A digital signature, unlike a physical signature, being software has to be purchased and is valid for 1 or 2 years, after which it can be renewed. The IT Act has given legal recognition to digital signature meaning that legally it has the same value as handwritten or signed signatures affixed to a document.
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Is it mandatory to have one?
Yes, digital signatures are mandatory for certain groups of people.
Directors of companies: Since 15 September 2006, the Registrar of companies made it mandatory for companies to file all annual returns online. Hence, it has become mandatory for directors of companies to have digital signatures.
Bank managers: RBI has made digital signatures mandatory for online submission and vetting of documents by the bank managers.
Exporters: Directorate General of Foreign Trade (DGFT) had enabled online application for export benefits, duty drawbacks, and the likes. Exporters use a particular form of digital signature called Safe Exim, for filing returns online.
Online tenders: Increasingly tenders both from government and private firms are being filled online and a digital signature may be mandated to authenticate your bid.
Proprietorship and Partnerships: There is a recommendation by the Income Tax department on online filing and hence digital signatures are mandatory for sole proprietorship with an annual turnover of more than Rs 40 lakh.
India is moving into a system where an increasing number of electronic transactions will go under the mandatory e-filing system requiring a digital signature. The private sector, too, is embracing this. It is estimated that there are 5,50,000 digital signature holders in the country currently.
Who can get it?
Any individual can apply for a digital signature after submitting documents of verification such as identity proof, address proof, employment history and credit history.
Digital signatures are issuable to an individual as a person, as well as to an individual as associated with a company. For instance, an employee of your company can get a digital signature saying Mohan, who is a purchase officer of Acme Ltd is the legal user of this digital signature. When Mohan quits or is transferred, this certificate is easily revocable, as the digital signature was issued because of he was a purchase officer at the company. Then, there is the digital signature without association with any company that one can pick off the shelf. This is usable by the user no matter which company he/she works in.
Currently, digital signatures are issued under two classes—Class-2 & Class-3. Class-2 is for individuals like directors to file their MCA forms. Class-3 signatures are for government transactions. Class-3 is a higher form of validation, for which verification is done more stringently. The technology in encryption is the same across all the classes.
The government has licensed seven Certifying Authorities (CA) to issue digital signatures. A CA not only issues the digital certificate, but also certifies all online transactions to establish an unbroken path of virtual trust.
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There are different forms for applications of a digital signature depending upon the type, class, etc that you are applying for. You should contact one of the CA appointed dealers to know which one should you use. You also need to give in documents for verification of identity. There is no fee for the dealer. There are hundreds of dealers appointed by the CAs across the country. The lists of dealers are available on the websites of the CAs.
The CA does validations (much like passport verification) after which a digital signature is issued and dispatched to you to the email address specified in your application. Note that this signature reaches you directly, without going through the dealer.
How exactly does it work?
On receipt of the signature on your email, all you have to do is to click on the icon provided for signature installation and activation. After this, you can start using the certificate right away to encrypt and sign emails, using the private key of your digital signature.
When the person receives the email, a message pops up on his screen, saying that this is an encrypted message sent by you, and does he want to acknowledge his acceptance to view the message. On yes, the public key is automatically accessed, which decrypts the message to open it. This means that the recipient has to be connected to the internet to read the message. When he clicks on yes, you get an acknowledgement mail as proof.
Digital signatures are compatible with most popular email clients. At the website of the CA, you will find detailed instructions about installation and usage on a variety of email clients. You can use them with most free web mail services as well.
Usage of digital signatures on email-capable handhelds has not really taken off. According to S R Kannan, Head, Security Services at Safescrypt, all the leading mobile phone makers, Nokia, Sony Ericsson et al have made their web-enabled handsets compatible with digital signatures.
How to keep it safe?
It is very important to keep a backup of your digital signature. This is to avoid losing it to a system crash at your end, reinstallation of operating system or mailing software, and such incidents. Instructions for creating a backup of digital signature are put up at the CA’s website. You can also use a cryptographic USB key to store your digital signature.
In case of loss or compromise, you have to revoke it and apply for a new digital signature. Note that no duplicate digital signature is issued.
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written by e-Solutions, May 25, 2010
We deal in Class II Digital Signature | Class 2 DSC | Class 2A/B| Class 2B DSC | Class III |Class 3B | Class 3 | Class III | Class IIIB Digital Signature, DGFT DSC| Safeexim DGFT DSC | Safe Exim DGFT DSC | (n)Exim DGFT DSC| nexim DGFT DSC | DGFT Digital Signature which are used for ROC, Income Tax, e-Tendering, Importers-Exporters. We are one of the largest distributor in India to provide digital signatures. We are the FC of TCS-CA for issuing Class 2 Digital Signature Certificates . We provide Class 3 DSC or Digital Signature Certificates and DGFT DSC or DGFT Digital Signature Certificates from all Certifying Authorities like TCS ( Tata Consultancy Services) , (n)Code Solutions, Safescrypt ( Sify ) , MTNL , e-Mudhra.
Visit us at www.esolutions.net.in
or Call Praveen Goyal 9873545477
written by nicemol, April 08, 2009
we are doing company registration as well as trade marks.
our contact no: 044 - 4206 8604 and mobile: 96770 36773
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