Before you can file almost anything on the MCA, GST or income tax portals, you need a Digital Signature Certificate. It is the digital equivalent of your handwritten signature, and the first thing to arrange before incorporation.
This guide explains what a DSC is, the class you need in 2026, where it is used, and how to get one.
Quick answers
What is a DSC?
An electronic credential that authenticates the identity of a person signing documents online.
Which class is current?
Class 3 is the only active class issued in 2026.
How long is it valid?
Between one and three years, then renewable.
Where is it used?
MCA, GST, income tax, e-tendering and other portals.
Is it legally valid?
Yes, under Section 5 of the Information Technology Act, 2000.
What is a Digital Signature Certificate?
A Digital Signature Certificate (DSC) is an electronic credential issued by a government-licensed Certifying Authority that authenticates the identity of the person signing a document online. Under the Information Technology Act, 2000, a signature affixed with a valid DSC has the same legal standing as a handwritten signature.
Key terms explained
- Certifying Authority (CA): A licensed issuer of DSCs, such as eMudhra, Capricorn, Sify or nCode, regulated by the Controller of Certifying Authorities.
- Controller of Certifying Authorities (CCA): The government body that licenses and oversees Certifying Authorities under the IT Act, 2000.
- USB crypto token: A secure hardware device on which the DSC is stored, required under CCA guidelines.
Why you need a DSC
Every proposed director and subscriber needs a DSC to sign incorporation forms, since all MCA filings are submitted digitally.
A DSC is also required for GST registration and returns, income tax filings, e-tendering and ROC compliance, so it is a recurring necessity, not a one-time need.
As of 2026, Class 3 is the only active class of DSC, after Class 1 and Class 2 certificates were phased out. To see how this fits into the broader process, read the Private Limited company registration process.
Legal framework
- Governing law: Information Technology Act, 2000.
- Key sections / rules: Section 5 (legal recognition of digital signatures), and CCA guidelines on Class 3 certificates.
- Regulatory authority: Controller of Certifying Authorities (CCA), which licenses Certifying Authorities.
How to get a DSC
- Choose a Certifying Authority — Select a CCA-licensed Certifying Authority such as eMudhra, Capricorn, Sify or nCode, or an authorised partner.
- Select validity and type — Choose a validity of one to three years and the right type: individual or organisation, signing or signing-plus-encryption.
- Submit KYC — Provide PAN and Aadhaar and complete video-based or Aadhaar OTP verification, now standard for most applicants.
- Download to a USB token — On approval, download the DSC onto a USB crypto token, as required by CCA security guidelines.
- Renew before expiry — Renew the DSC before it expires to avoid disruption to MCA, GST and income tax filings.
DSC at a glance (2026)
| Attribute | Detail |
|---|---|
| Active class | Class 3 only |
| Validity | 1 to 3 years |
| Indicative cost | Rs 849 – Rs 4,500 |
| Storage | USB crypto token (mandatory) |
| Issuance time | Usually 1 to 2 working days |
Cost varies by validity, individual versus organisation type, and whether a token is included. Foreign nationals may take 3 to 7 days due to extra verification.
Common mistakes to avoid
- Buying the wrong DSC type. An individual DSC will not work where an organisation DSC is required. Match the type to the filing you need it for.
- Letting the DSC lapse. An expired DSC stalls every filing. Renew before expiry, as renewal takes similar effort to a fresh issue.
- Sharing the token or PIN. A DSC is your legal signature. Sharing the token or PIN risks unauthorised filings in your name.
Penalties and consequences
Fraudulent use of another person's digital signature, or creating or publishing a false DSC, is an offence punishable with imprisonment up to two years, a fine up to Rs 1 lakh, or both, under Sections 73 and 74 of the Information Technology Act, 2000.
Documents requiring a digital signature that are filed without a valid DSC are rejected by the relevant portal, stalling incorporation or compliance until a valid DSC is obtained.
How these provisions connect
Because DIN for first directors is allotted within SPICe+, the DSC must be obtained first so the incorporation forms can be signed. See the documents required for company registration to prepare in advance.
The legal validity of a DSC flows from Section 5 of the IT Act, 2000, which is why MCA, GST and income tax portals accept it in place of a wet signature.
DSC classes: then vs now
| Class | Status in 2026 | Use |
|---|---|---|
| Class 1 | Phased out | Basic email validation (legacy) |
| Class 2 | Phased out | Earlier MCA/GST filings (legacy) |
| Class 3 | Active (only class) | All current MCA, GST, tax, e-tendering |
Key takeaways
- A DSC is an electronic credential that gives an online signature the legal force of a handwritten one under the IT Act, 2000.
- Class 3 is the only active class in 2026, after Class 1 and Class 2 were phased out.
- A DSC is valid for one to three years, stored on a USB crypto token, and issued by CCA-licensed Certifying Authorities.
- Every director needs a DSC before incorporation, and it is also used for GST, income tax and ROC filings.
Frequently asked questions
What is a digital signature certificate?
A DSC is an electronic credential issued by a licensed Certifying Authority that authenticates the signer's identity online. Under the IT Act, 2000, it carries the same legal weight as a handwritten signature.
What is a Class 3 DSC?
A Class 3 DSC is the highest-assurance digital signature certificate, issued after strict identity verification. As of 2026, it is the only active class used for MCA, GST and tax filings.
How long is a DSC valid?
A DSC is valid for one to three years, depending on the option chosen at purchase. It must be renewed before expiry to keep filing on government portals.
Where is a DSC used?
A DSC is used on the MCA, GST and income tax portals, for company incorporation, e-tendering, and ROC compliance filings, among other online transactions.
How do I get a DSC?
Choose a CCA-licensed Certifying Authority, select validity and type, complete Aadhaar or video KYC, and download the certificate onto a USB crypto token. It usually takes one to two working days.
Is a DSC legally valid?
Yes. Section 5 of the Information Technology Act, 2000 gives a document signed with a valid DSC the same legal recognition as a handwritten signature.
What does a DSC cost?
A Class 3 DSC typically costs between Rs 849 and Rs 4,500, depending on validity, whether it is individual or organisation, and whether a token is included.
Can a DSC be stored on a computer?
No. CCA guidelines require the DSC to be stored on a secure USB crypto token, not directly on a computer, for security.
Need help with this?
Need DSCs for your directors before incorporation? Regikart's CA & CS team arranges Class 3 certificates and uses them for your full filing. See our company registration service. You can also call or WhatsApp Regikart on +91 70444 94804 (Mon–Sat, 9 am–7 pm IST), or contact us.
About the author
Deepak
Senior Advisor at Regikart. Want to discuss this in the context of your business?
