Digital signature certificates, explained: Class 3, sign versus encrypt, and who actually needs one
A DSC is the legal equivalent of your signature on a government portal. Since 2021 there is only one class, it lives on a USB token, and it expires on the day you most need it. Here is how it works.
FilingBase editorial team · Facts checked against official sources on · Published
What a DSC is
A digital signature certificate is an electronic credential issued under the Information Technology Act, 2000 by a certifying authority licensed by the Controller of Certifying Authorities. It binds a public key to your identity, so that a document signed with the matching private key is treated as signed by you under section 3 of the Act.
The private key is stored on a hardware USB token that meets the FIPS 140-2 standard, protected by a PIN. Signing means plugging in the token, entering the PIN and letting the portal’s signing utility apply the signature. The certificate itself is public; the token is what you must not lose.
Class 3 is the only class
Class 2 certificates were withdrawn on 1 January 2021. Every DSC issued since is Class 3, which requires identity verification to the highest assurance level and is accepted everywhere a DSC is accepted at all. Old references to Class 2 for MCA or income-tax filing are simply out of date.
Within Class 3 there are three variants and two holder types:
| Variant | What it does | Typical use |
|---|---|---|
| Signature | Signs documents and forms | MCA, income tax, GST, trademark, EPFO, most filings |
| Encryption | Encrypts data so only the holder can read it | Rarely bought alone |
| Combo (sign and encrypt) | Both keys on one token | e-tendering and e-procurement portals, which require encryption |
An individual DSC carries the person’s name and PAN. An organisation DSC carries the person’s name together with the organisation’s details and is what DGFT and many tender portals require for a company. Directors signing MCA forms use individual DSCs; the company itself does not hold one.
Validity, price and the token
Certificates are issued for one, two or three years, chosen at purchase. In 2026 a two-year Class 3 signature certificate costs roughly ₹800 to ₹1,500 from the certifying authorities and their registration partners, a three-year one somewhat more, and the combo variant about ₹1,000 above the signature price. The USB token is usually ₹400 to ₹800 on top unless you already own one.
A DSC cannot be extended. Renewal means a new certificate, which can be loaded onto the existing token if it is still supported. Buy the longest validity you will use: the cost difference is small and expiry always arrives during a filing.
How issuance works in 2026
- Apply with a certifying authority or its registration partner, giving the name exactly as on PAN, the mobile number and the email.
- Complete paperless KYC: PAN and Aadhaar verification by OTP, or an eKYC account with the certifying authority.
- Record the short verification video the authority requires, reading out the application code, with the original identity document visible.
- The certificate is issued, typically within an hour, and downloaded onto the token using the authority’s utility.
Foreign nationals and NRIs apply with a passport and an overseas address proof, attested or apostilled as the authority requires, and the video call replaces in-person verification. A foreign director of an Indian company needs their own DSC to sign incorporation and annual forms.
Which filings insist on a DSC
| Portal | Who must sign with a DSC |
|---|---|
| MCA | Every director and the certifying professional on SPICe+, AOC-4, MGT-7A, DIR-12, DIR-3 KYC and all event-based forms; designated partners on LLP forms |
| Income tax | Companies and any taxpayer subject to tax audit; the CA on audit reports and Form 146 (formerly 15CB); political parties and certain others |
| GST | Companies and LLPs on registration and returns; others may use Aadhaar OTP or EVC |
| DGFT | Firms and companies for the IEC and its annual update; licences and scheme claims |
| Trade marks and patents | Applicants and agents filing on the IP India portal |
| EPFO and ESIC | Employer registration and monthly returns in many cases |
| Tenders | Combo certificates on government e-procurement portals |
Before first use on each portal the DSC must be registered there: associated with the DIN on MCA, registered under the profile on the income-tax e-filing site, and linked to the GSTIN on the GST portal. Registration is where most first-day failures happen, not signing.
Where DSCs fail
Name mismatch. The name on the certificate must match the PAN and, on MCA, the DIN record character for character. A missing middle name means the portal rejects the signature.
Expired on the day. Directors who sign nothing between annual filings discover the expiry at the AOC-4 deadline. Check the validity in September, before the filing season.
Utility and driver problems. The MCA and income-tax signing utilities and the token drivers need specific versions; a browser update breaks them. Keep the emSigner or equivalent utility current on the machine you file from.
Wrong holder. An organisation DSC is not a substitute for a director’s individual DSC on MCA forms, and an individual DSC will not satisfy a DGFT company profile.
Lost token. The certificate must be revoked with the authority and reissued; the private key cannot be recovered. Treat the token like a cheque book.
The list of licensed authorities is published by the Controller of Certifying Authorities. Our DSC service issues a Class 3 certificate with the token in about 30 minutes and registers it on the portals you need.
Frequently asked questions
Is a Class 2 DSC still valid?
No new Class 2 certificates have been issued since 1 January 2021 and any issued before then have expired. Class 3 is the only class in use.
How long is a DSC valid?
One, two or three years, chosen at purchase. It cannot be extended; renewal is a new certificate.
Do I need a DSC for GST?
Companies and LLPs must sign GST applications and returns with a DSC. Proprietors, partnerships and individuals can use Aadhaar OTP or an electronic verification code instead.
What is the difference between a signature DSC and a combo DSC?
A signature certificate signs documents. A combo adds an encryption certificate on the same token, which government e-tendering portals require to decrypt bid documents. For MCA, income-tax and GST filing, a signature certificate is enough.
Can a foreign director get a DSC?
Yes, with a passport and an overseas address proof attested as the certifying authority requires, and a video verification. It is required for incorporation and annual MCA filings.
Class 3 DSC in about 30 minutes
Class 3 certificate with 2-year validity and USB token, one price of ₹1,500 including GST.
Keep reading.
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The 30 September deadline is gone. What the once-in-three-years rule, the merged form and the 30-day change intimation mean for every DIN holder.
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Read guide→Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.