Who is the Certifying authority for digital signature?

By Adv Rishabh Kumar

Published on: December 16, 2023 at 14:52 IST

Digital signatures need to have a regulatory authority to verify and authenticate it. They are the needed for certifying digital files and documents. To go paperless we need a reliable system of certified documents which cannot be replicated and used without authenticity. MCA has been given the role of certifying Digital Signature. In the article we shall delve into the competent authority of issuing Digital signature Certificate.

What is a digital signature?

A digital signature is a cryptographic technique used to verify the authenticity and integrity of digital messages, documents, or software. It serves a similar purpose to a handwritten signature or a stamped seal but is implemented in the digital realm.

“digital signature” means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3.

As per the IT Act, 2000

MCA (Ministry of Corporate Affairs)

MCA in the context of India generally refers to the Ministry of Corporate Affairs. The Ministry of Corporate Affairs is a government ministry in India that regulates corporate affairs in the country. It plays a crucial role in the development and regulation of the corporate sector. Here are some key functions and responsibilities of the Ministry of Corporate Affairs:

1. Company Registration and Regulation: MCA is responsible for the registration and regulation of companies in India. It administers the Companies Act, which outlines the rules and regulations governing the formation and operation of companies.
2. Corporate Governance: MCA works towards promoting good corporate governance practices among companies. This includes ensuring transparency, accountability, and fairness in corporate dealings.
3. Registrar of Companies (RoC): MCA operates through a network of Registrar of Companies (RoC) offices across the country. These offices handle the registration of companies, monitor their compliance with statutory requirements, and maintain the public registry of corporate information.
4. Monitoring and Enforcement: MCA monitors the compliance of companies with the statutory requirements and takes action against those that violate the rules. This includes penalizing companies for non-compliance and taking legal action when necessary.
5. Investor Education and Protection: The ministry works towards the education and protection of investors. It aims to create awareness among investors about their rights and responsibilities and takes measures to protect their interests.
6. Insolvency and Bankruptcy Code (IBC): MCA is involved in the implementation and regulation of the Insolvency and Bankruptcy Code, which provides a framework for the resolution of insolvency and bankruptcy cases in a time-bound manner.
7. Policy Formulation: MCA formulates policies related to the corporate sector in consultation with various stakeholders. It is involved in developing and amending laws and regulations to keep them in line with the changing economic and business environment.
8. Corporate Social Responsibility (CSR): MCA oversees the implementation of corporate social responsibility initiatives by companies as mandated by the Companies Act. It encourages companies to contribute to social and environmental causes.
9. Liquidation and Winding Up: The ministry is involved in the process of liquidation and winding up of companies that are unable to meet their financial obligations.
10. Intellectual Property related to Companies: MCA also plays a role in matters related to intellectual property, particularly as it pertains to the corporate sector.

Legal framework

• Incorporation Processes (Section 7): MCA administers procedures for company incorporation in accordance with Section 7 of the Companies Act, 2013.
• Director Appointments (Section 149): The MCA’s authority extends to the appointment of directors within companies, as mandated by Section 149.
• Financial Regulation (Sections 73 and 74): Sections 73 and 74 confer powers upon MCA to regulate and penalize companies for financial irregularities.
• Insolvency and Bankruptcy Code (IBC) Enforcement (Section 60): MCA is tasked with the implementation and enforcement of the Insolvency and Bankruptcy Code, as outlined in Section 60.
• Corporate Governance (Sections 166 and 178): The MCA formulates and enforces corporate governance policies, drawing authority from Sections 166 and 178.
• Registrar of Companies (RoC) Responsibilities (Sections 396 and 397): Sections 396 and 397 define the regulatory role of RoC offices under MCA, covering aspects of company registration and compliance.
• Corporate Social Responsibility (CSR) Oversight (Section 135): MCA’s involvement in overseeing CSR activities aligns with the provisions outlined in Section 135

Advantages of using DSC

Using digital signatures offers several advantages, including enhanced security, efficiency, and global legal acceptance:

1. Security:
   • Authentication: Digital signatures provide a strong method of authentication, ensuring that the sender is who they claim to be.
   • Integrity: They guarantee the integrity of the signed document or message, as any alterations to the content would render the signature invalid during verification.
   • Non-repudiation: Digital signatures make it difficult for the signer to deny their involvement, providing a level of non-repudiation.
2. Efficiency:
   • Speed and Convenience: Digital signatures streamline the signing process, allowing for quick and convenient authentication without the need for physical presence.
   • Paperless Transactions: The use of digital signatures eliminates the need for physical paperwork, reducing the time and resources associated with traditional, paper-based transactions.
3. Global Legal Acceptance:
   • Legally Binding: Digital signatures are legally recognized in many countries and regions, making them a valid and secure means of signing contracts and other legal documents.
   • Compliance: They often meet the regulatory requirements and standards set by government bodies and industry-specific regulations.
4. Cost Savings:
   • Reduced Paperwork and Storage Costs: Digital signatures contribute to a paperless environment, reducing costs related to printing, handling, and storing physical documents.
   • Time Efficiency: Faster document turnaround times contribute to increased productivity and cost savings.
5. Global Accessibility:
   • Anywhere, Anytime Access: Digital signatures enable individuals to sign documents from anywhere in the world, facilitating global business transactions and collaborations.
6. Environmentally Friendly:
   • Reduced Environmental Impact: The shift towards digital signatures aligns with sustainability efforts by decreasing the reliance on paper and lowering the environmental footprint associated with traditional paperwork.
7. Technological Advancements:
   • Integration with Other Technologies: Digital signatures can easily integrate with other technologies, such as document management systems and workflow automation tools, enhancing overall efficiency.
8. Secure Transmission:
   • Secure Online Transactions: Digital signatures ensure the security of online transactions, protecting sensitive information during the exchange of digitally signed documents.

Difference between Electronic Signature and Digital Signature

1. An electronic signature is used for verifying documents whereas a digital signature is used for securing a document.
2. Electronic signature is not validated by an authority but a digital signature is verified by an authority.
3. Electronic signatures lack any security feature unlike Digital signature that include a certain level of security and protection. Electronic signatures while being easy to use have low evidentiary value and digital signature are uncommon and have a higher level of authenticity.

Certifying Authorities of Digital signature

The issuance of Digital Signature Certificates (DSCs) in India is regulated by the Controller of Certifying Authorities (CCA), who has designated Certifying Authorities (CAs) for this purpose. The Office of the Controller of Certification Agencies (CCA) has granted authorization to 15 CAs to issue DSCs to individuals.

Certifying Authorities (CAs) that have been licensed to issue digital signature certificates under Section 24 of the Indian IT Act 2000 include:

• National Informatics Center (NIC) 
• IDRBT Certifying Authority 
• SafeScrypt CA Services, Sify Communications Ltd. 
• (n) Code Solutions CA 
• E-MUDHRA 
• CDAC 
• NSDL 
• Capricorn 
• Pantasign 
• IDSIGN 
• Verasys 
• XtraTrust
• Care4Sign
• SignX
• ProDigiSign

How to obtain digital Signature certificates?

To obtain a Digital Signature Certificate (DSC), follow these steps:

Step 1: Legal Warning

• Ensure that you use only the valid Digital Signatures issued to you. It is illegal to use Digital Signatures of anybody other than the one to whom it is issued.

Step 2: Certification Agencies

• Certification Agencies are appointed by the office of the Controller of Certification Agencies (CCA). Check the Ministry of Corporate Affairs portal for a list of approved Certification Agencies.

Step 3: Class of DSCs

• Make sure you obtain a Class-II or above category signing certificate for e-Filings under MCA21. If you already have the specified DSC for any other application, you can use the same for filings under MCA21.

Step 4: Validity of Digital Signatures

• Digital Signatures are typically issued with one or two years of validity. Ensure you are aware of the validity period and renew the DSC before it expires.

Step 5: Costing/ Pricing of Digital Signatures

• Consider the costing/pricing of Digital Signatures, which includes the cost of the medium (USB token), issuance of DSC, and renewal costs. You can procure DSCs from any approved Certification Agency, and costs may vary.

Step 6: Obtain Digital Signature Certificate

• Approach Certifying Authorities (CAs) directly with original supporting documents. Self-attested copies may be sufficient.
• Alternatively, DSCs can be obtained, where offered by CA, using Aadhar eKYC based authentication. In this case, supporting documents are not required.
• A letter/certificate issued by a Bank containing the DSC applicant’s information, as retained in the Bank database, can be accepted. Ensure that such a letter/certificate is certified by the Bank Manager.

Conclusion

In India, digital signatures hold legal validity under the Information Technology Act, 2000, and the Information Technology (Amendment) Act, 2008. These signatures are issued by Certifying Authorities (CAs) licensed by the Controller of Certifying Authorities (CCA), making them legally binding and equivalent to physical signatures.

In essence, digital signatures represent a critical shift in the way we authenticate documents and conduct business. They offer efficiency, security, and global accessibility, making them a pivotal element in the modern era of digital transactions and contracts. As businesses and individuals continue to embrace digitization, the reliance on digital signatures will only grow, reshaping the way we execute agreements and transactions in the future