• Digital Signature
  • MANISH KHAN
  • 25-Nov-2025

Digital Signature vs. Electronic Signature-Key Differences Explained

In today’s digital world, most businesses want faster, safer, and paperless document signing. Two common terms people often hear are digital signature and electronic signature. Both help in online approval, contract signing, and remote workflows, but they are not the same. This simple guide explains the difference in easy Indian English.

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What Is a Digital Signature?

A digital signature is a special type of online signature that uses encryption, digital certificates, and strong identity verification. It is very secure and trusted by banks, government offices, and big companies.

In simple words, a digital signature proves that:

•    the document is real,
•    the signer is genuine,
•    the document is not changed after signing.

Technical Part

A digital signature uses:

•    Public Key Infrastructure (PKI)
•    Digital Certificate (DSC)
•    Identity validation

This makes the signature tamper-proof and legally strong.

Examples

You use digital signatures for:

•    signing PDF documents
•    signing legal forms
•    GST filings, MCA forms, income tax returns
•    government and corporate agreements

This explains what is digital signature and how it works in simple form.

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What Is an Electronic Signature?

An electronic signature (e-signature) is any online way of signing a document using:

•    OTP
•    Click-to-sign
•    Aadhaar eSign

It does NOT need a certificate or complex encryption. It is simple and used for everyday business tasks.

Key Point

Electronic signatures are easy, fast, and perfect for simple workflows like HR forms, internal approvals, onboarding, and small contract signing.

This answers what is an electronic signature clearly.

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Digital Signature vs Electronic Signature: Key Differences

Key Difference : Digital Signature vs Electronic Signature
Feature Digital Signature Electronic Signature
Security Level Very High (Encryption, PKI) Moderate (OTP, click-to-sign)
Certificate Needed? Yes (DSC) No
Legal Status Strongest validity Valid but depends on method
Usage Government, banks, legal work HR, contracts, onboarding
Technology Advanced encryption Simple digital approval
Tamper-Proof Yes Limited

Legality in India
Both are legal under the IT Act 2000, but digital signatures have higher legal strength.

If you wonder is electronic signature legally valid in India?
Yes, Aadhaar-based eSign is fully legal.

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Why Businesses Need Digital or Electronic Signatures Today

Modern companies face many challenges such as:

•    too much manual paperwork
•    slow approvals
•    remote teams working online
•    security risks with paper documents
•    pressure for KYC compliance
•    need for workflow automation

Digital and electronic signatures help businesses save time, improve safety, and build digital trust.

Common needs include:

•    e-signature for HR onboarding
•    digital signing for contracts and agreements
•    e-signature for remote teams
•    secure e-signature solutions for enterprises

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How Digital Signature Works (Step-by-Step)

1.    Certificate Issuance
A user gets a Digital Signature Certificate (DSC) from a trusted authority.

2.    Encryption Applied
The system locks the signature using encryption.

3.    Signing the Document
The user signs digitally using a token, file, or secure key.

4.    Verification
The receiver checks authenticity using certificate details.

5.    Timestamping
A secure digital timestamp confirms when it was signed.

This covers how to verify a digital signature as well.

How Electronic Signature Works

Electronic signatures are much simpler:

•    Aadhaar OTP for Aadhaar eSign
•    Email OTP
•    Click-to-sign options
•    One-click approval workflows

This suits businesses that want quick digital workflows without complex certificates.

Types of Digital Signature Certificates (DSC)

1.    Class 2 or Class 3 DSC – used for e-filing, legal & government work
2.    Document Signer Certificate – for automated signing by systems
3.    Organization DSC – used by companies
4.    Foreign DSC – for international use (optional)

Benefits of Using Digital or Electronic Signatures

•    Fast and smooth onboarding
•    Saves money and paper
•    Fully digital and environment-friendly
•    Legally valid
•    Safe and secured with authentication
•    Works for remote signing
•    Complete audit trails
•    Reduces fraud and forgery
•    Simplifies document security and digital workflows

Best Use Cases Across Industries

Works best for:

•    HR & employee onboarding
•    Legal contracts & agreements
•    Vendor and supplier agreements
•    Banking and fintech KYC
•    Real estate rental or sale agreements
•    Logistics approvals & transport documents
•    E-commerce seller onboarding
•    Government forms, GST, MCA filings

Every industry can benefit from going paperless.

How to Choose the Right E-Sign or Digital Signature Solution

Look for:


•    strong security & encryption
•    IT Act compliance
•    easy-to-use interface
•    mobile compatibility
•    API integration for automation
•    fast processing
•    good customer support
•    clear and affordable pricing

This helps businesses select the best digital signature tool for business easily.

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Conclusion:

Both digital signatures and electronic signatures make online approval and contract signing simple and secure. Digital signatures are highly secure and legally strong, while electronic signatures are fast and user-friendly. For modern businesses, using e-sign or digital sign solutions is no longer optional—it is a must for smooth, safe, and paperless operations.

If you need easy, safe, and fast digital signing or e-signature solutions for your business, I can help you create content, workflows, or product pages. Just tell me!

For more information regarding digital signature please contact Manishkhan.com

author
Sonali Sahoo

Student

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You might also have Few Questions

  • Is electronic signature legal in India?

    Yes, Aadhaar-based eSign is legal under the IT Act 2000.

  • What is the main difference between digital and electronic signature?

    Digital signatures use certificates and encryption. E-signatures are simple online approvals using OTP or click-to-sign.

  • How to create a digital signature online?

    You can get a DSC from a licensed certifying authority and use it to sign PDFs or forms.

  • Can digital signatures be used for GST or MCA filings?

    Yes, they are required for many government filings.