What is a digital signature? Why should businesses use digital signatures?

What is a digital signature? Why should businesses use digital signatures in today's business era? To better understand how digital signatures are different from regular stamps and signatures and why digital signatures are necessary for businesses, please refer to Yes Office for more related information. 

What is a digital signature?

What is a digital signature? Digital signature is also known by another name: Token, electronic signature. This is considered one of the important and indispensable information for businesses today. Digital signatures use modern RSA encryption technology to create. Token is information that accompanies electronic documents, images, and videos on the Internet to determine who the owner of that data is.

Currently, people use digital signatures and electronic signatures to sign different types of electronic documents to meet the work needs of modern technology. When signing a digital signature on an electronic document, when printing or faxing it out, it can be accompanied by a text signature depending on each person's needs.

What does a digital signature include?

Each business that registers a digital signature can include additional information. Content related to your business there. Some information attached to the digital signature such as:

• Name of company, business: Tax code, name of company ty…
• Digital certificate number (serial number).
• The clear validity period of the digital certificate.
• Name of the organization that authenticates digital signatures for businesses
• Digital signature of the organization that authenticates digital signatures for businesses.
• Letter restricting the scope and purpose of use of digital certificates.
• Limiting the responsibility of the providing organization digital signature authentication service.
• Other necessary related contents according to regulations.

A business's digital signature, if it has legal value, will be equivalent to a handwritten signature and business seal.

The use of a digital signature isWhat?

Digital signatures are used by businesses to declare and pay taxes online, declare electronic customs or perform transactions with electronic banks. Besides, digital signatures are also used for electronic stock transactions of businesses and social insurance declarations.

Using digital signatures, businesses do not need to sign books, need red invoices or red stamps as usual. Especially when signing a contract with a business partner, both sides can transact online and use digital signatures to work quickly and conveniently without needing to meet in person.

Utilities when using digital signatures

Using digital signatures also brings certain utilities, which are:

Determining clear origin

Digital signature applies encryption with modern technology secret key. The possibility of impersonating a digital signature is not too high except in cases where the system is broken by hackers. Digital signatures are often accompanied by information related to the owner of that business, so identification is easy.

Do not refuse

With electronic documents that use digital signatures, the ability to refuse is very difficult. Unlike a signature on paper, it can be faked or denied. When performing online transactions using digital signatures as well as important legal evidence, you can rest assured.

Integrity

When both parties transact with electronic documents, the ability to change text information is very difficult. When information in the text is changed, the function changes accordingly, making it very easy to detect. The encryption process will hide the content of the packet if a third party intends to intervene. Digital signatures are chosen by many people today because of the advantage of being agile in a time when online business is increasingly developing. Businesses should learn more about digital signatures to conveniently register for use.

What is the legal basis of digital signatures?

On November 29, 2005, the Government issued the Electronic Transactions Law. The regulations clearly state the use of digital signatures and digital authentication for mutual transaction needs and are clearly stated in Decree 26/2007/ND-CP dated February 15, 2007.

When conducting electronic transactions At public activities, businesses must use public digital signatures that have been recognized by organizations providing public digital signature authentication services. The process of using digital signatures for transactions includes:

• Createsignature
• Check signature

Note that when creating a digital signature, businesses should use the private key to digitally sign and when checking the signature, they should check the public key to see if it is valid or not. You should research and contact digital signature authentication addresses or legal digital signature purchase locations to create digital signatures according to your needs. The above information clearly explains what a digital signature is. For advice on business establishment services in Ho Chi Minh City for newcomers, please contact Yes Office. See more: The practice certificate is What?