supplier onboarding

Aadhaar eSign vs Digital Sign Certificate

Aadhaar eSign vs Digital Signature Certificate (DSC): All Key Differences Explained

As businesses move towards digital transformation, electronic signatures are becoming an everyday necessity for individuals and businesses alike. Whether it’s signing contracts, authorising documents, or completing government formalities, electronic signatures make the process faster, more secure, and completely paperless. In India, Aadhaar eSign and Digital Signature Certificates (DSC) are two popular ways to sign documents digitally, but they’re not the same.

If you’ve ever wondered how these two options work, what sets them apart, and which one is better suited for your needs, you’re at the right place. Aadhaar eSign is all about simplicity and ease—it allows you to sign documents online using just your Aadhaar-linked mobile number or biometric data. On the other hand, DSC is a hardware-based solution that’s perfect for tasks requiring extra layers of security, like filing government tenders or signing high-value contracts.

This blog will break down the differences between Aadhaar eSign and DSC in simple terms, helping you understand their features, benefits, and use cases. By the end of it, you’ll have a clear idea of which one to choose—whether you’re a student filling out an application form, a business signing agreements, or a government official handling sensitive transactions.

What Is Aadhaar eSign?

Aadhaar eSign is a simple, secure, and hassle-free way to sign documents online using your Aadhaar number. It’s perfect for anyone who wants to skip the trouble of dealing with physical paperwork or waiting in long queues for approvals. With Aadhaar eSign, all you need is your Aadhaar-linked mobile number or biometric details to sign documents instantly, no matter where you are.

Here’s how it works: when you initiate an eSign, you’re asked to authenticate your identity. This is usually done via a One-Time Password (OTP) sent to your Aadhaar-registered mobile number. In some cases, biometric authentication, like fingerprints or iris scans, can also be used. Once your identity is verified, your electronic signature is securely created and added to the document.

Aadhaar eSign was introduced to make digital signing accessible to the masses. It’s legally recognised under the Information Technology Act of 2000, so it holds the same weight as a handwritten signature. Whether you’re signing a lease agreement, approving a business contract, or submitting an application form, Aadhaar eSign makes the process quick and straightforward.

Key Features Of Aadhaar eSign

  • No Physical Device Needed: Unlike traditional digital signatures, Aadhaar eSign doesn’t require a USB token or hardware. It’s completely online.
  • Instant Authentication: Your identity is verified instantly using Aadhaar-based OTP or biometrics.
  • Legally Valid: Aadhaar eSign is fully compliant with Indian law and is as valid as a traditional digital or handwritten signature.
  • Convenient and Scalable: Ideal for individuals, small businesses, and even large organisations needing a quick and cost-effective solution.

Example: Imagine you’re applying for a home loan and need to sign multiple forms and agreements. Instead of printing, signing, and scanning documents, you can use Aadhaar eSign to complete the entire process online in minutes. It’s that simple!

Talk to sales - AuthBridge

What Is A Digital Signature Certificate (DSC)?

A Digital Signature Certificate, or DSC, is a government-issued digital key that acts as your virtual identity for signing electronic documents. It’s like your personal seal of authenticity in the digital world, ensuring that the documents you sign are secure, unaltered, and undeniably yours. However, unlike Aadhaar eSign, DSC requires a physical device—typically a USB token—to function.

Here’s how it works: When you apply for a DSC, a Certifying Authority (CA), such as eMudhra or VSign, issues a unique key pair (public and private keys) linked to your identity. This key pair is securely stored on the USB token. When signing a document, you plug the token into your computer, enter your PIN, and the DSC creates an encrypted digital signature for the file. This signature ensures the document’s integrity and authenticity.

DSCs are widely used for applications requiring high-security standards, such as government filings, legal agreements, or corporate transactions. They’re particularly valuable for businesses or individuals who frequently deal with sensitive or high-value documents.

Key Features Of Digital Signature Certificates

  • High Security: The private key never leaves the USB token, making DSC highly secure and resistant to tampering.
  • Legal Recognition: DSCs are fully compliant with Indian law under the Information Technology Act of 2000 and are accepted for tasks like income tax filing, e-tender submissions, and financial transactions.
  • Reusable: A single DSC can be used across multiple platforms, making it a long-term solution for frequent users.
  • Offline Compatibility: Unlike Aadhaar eSign, DSCs can also be used to sign documents offline, making them ideal for environments with limited internet access.

Example: Suppose a construction company is submitting a government tender. The process requires all participating firms to sign the bid documents with a Class 3 DSC, which provides a high level of encryption and security. This ensures the bid is authentic and cannot be altered after submission.

Differences Between Aadhaar eSign And Digital Signature Certificates (DSC)

While both Aadhaar eSign and Digital Signature Certificates (DSC) allow users to sign documents electronically, their underlying technologies, authentication methods, and use cases make them fundamentally different. Below is a detailed breakdown of the key differences between the two:

  1. Authentication Method Aadhaar eSign is entirely Aadhaar-based. It uses either an OTP sent to the signer’s Aadhaar-linked mobile number or biometric verification (like fingerprints or iris scans) to confirm identity. This process is quick and requires no additional hardware.

On the other hand, DSC relies on a physical USB token that stores the user’s private key. To sign a document, the token must be connected to a computer, and the user has to input a unique PIN. While secure, this method involves additional steps and equipment.

  1. Accessibility Aadhaar eSign is accessible to any Indian citizen with a valid Aadhaar number and a registered mobile number. No special hardware or software is required, making it a highly convenient and scalable solution.

In contrast, DSCs are issued by authorised Certifying Authorities and require the purchase of a USB token. The process to procure a DSC can take days and involves identity verification, making it less accessible compared to the Aadhaar eSign.

  1. Security DSC offers a higher level of security because the private key used for signing is stored on a hardware device, ensuring it cannot be accessed remotely. This makes DSC ideal for high-value or sensitive transactions where data integrity is critical.

Aadhaar eSign, while secure, depends on the Aadhaar ecosystem and the robustness of OTP or biometric authentication. It is legally valid but may not meet the stringent security requirements of certain applications.

  1. Cost Aadhaar eSign is typically cost-effective, with charges ranging from ₹20 to ₹50 per document or transaction. This affordability makes it an attractive option for individuals or small businesses.

DSC, on the other hand, requires an upfront cost to purchase the USB token, which can range from ₹500 to ₹2000, along with annual renewal fees. While more expensive, it is economical for frequent, bulk-signing scenarios.

  1. Use Cases Aadhaar eSign is ideal for low-stakes, everyday transactions like signing consent forms, applications, or one-time contracts. Its simplicity and speed make it perfect for individuals and businesses with occasional signing needs.

DSCs are better suited for high-security applications, such as signing legal agreements, government filings, corporate compliance documents, and financial transactions. Their robust security and long-term usage make them indispensable for large organisations and professionals.

Comparison Table: Aadhaar eSign vs Digital Signature Certificates (DSC)

Feature

Aadhaar eSign

Digital Signature Certificate (DSC)

Authentication

Aadhaar-linked OTP or biometrics

USB token and PIN

Accessibility

Online, no hardware is required

Requires a physical USB token

Security

Secure but reliant on the Aadhaar ecosystem

High security; private key stored on a token

Cost

₹20–₹50 per document

₹500–₹2000 + annual renewal fees

Use Cases

Everyday signing, small businesses

Government filings, legal agreements

Procurement Time

Instant

2–7 days

Aadhaar eSign Or DSC: What’s Best For Your Business?

For businesses, the decision between Aadhaar eSign and Digital Signature Certificates (DSC) depends on the nature of transactions, document sensitivity, and the scale of operations. Both solutions cater to different business needs, and understanding their applicability can help you make the right choice.

Why Choose Aadhaar eSign For Your Business?

Aadhaar eSign is ideal for organisations seeking simplicity, scalability, and cost-effectiveness. Here’s why businesses should consider Aadhaar eSign:

  • Streamlined Customer Transactions: Aadhaar eSign is perfect for B2B processes requiring customer approvals, such as onboarding, loan agreements, or service contracts. With instant OTP-based authentication, it reduces the time taken to complete these processes.
  • Paperless Workflow: Businesses looking to eliminate paperwork can benefit greatly from Aadhaar eSign. Enabling clients, partners, and vendors to sign digitally, simplifies workflows and ensures timely execution of contracts.
  • Cost-Effective for High Volumes: Aadhaar eSign’s pay-per-use model makes it a cost-efficient choice for businesses processing large volumes of low-stakes documents, such as invoices, purchase orders, or employee forms.
  • Easy Integration with Existing Systems: Aadhaar eSign can be seamlessly integrated into your business’s existing digital platforms, such as CRM systems or ERP solutions, making it easier to deploy at scale.

Use Case For Aadhaar eSign
Imagine an HR firm managing employee background verification and offer letter issuance for multiple clients. Aadhaar eSign ensures that all documents are signed swiftly and securely without requiring physical follow-ups, improving operational efficiency.

Why Choose DSC For Your Business?

Digital Signature Certificates are essential for businesses handling high-security transactions or needing to meet compliance standards. Here’s why DSC is a better fit in certain scenarios:

  • Compliance with Legal Requirements: Businesses participating in government tenders or filing regulatory documents often need DSCs. For instance, GST filings, corporate tax returns, and MCA filings mandate DSC use.
  • Enhanced Security for Sensitive Transactions: When signing contracts involving large sums of money or sensitive information, DSC ensures unparalleled security. The physical USB token provides an added layer of trust and protection.
  • Bulk Signing Needs: For industries like finance and manufacturing, where businesses need to sign hundreds or thousands of documents daily (e.g., invoices or vendor agreements), DSC offers a robust and secure solution.

Use Case for DSC
A construction company bidding on government tenders requires a Class 3 DSC for its authorised signatory. The company also uses DSC to sign high-value project contracts, ensuring compliance and security.

Hybrid Approach For B2B Operations

Many businesses deal with a combination of high-stakes and everyday transactions. For example, a financial services company might use Aadhaar eSign for customer onboarding and loan approvals while relying on DSC for regulatory filings and contracts with corporate clients. Adopting both technologies ensures flexibility while meeting diverse needs.

Key Takeaway
If your business prioritises convenience, scalability, and affordability, Aadhaar eSign is a practical choice. For compliance-driven, high-security applications, DSC remains unmatched. Evaluate your document workflows and use cases to decide the best fit—or adopt both for maximum operational efficiency.

Why Choose AuthBridge For Aadhaar eSign?

When it comes to Aadhaar eSign, AuthBridge comes up as a trustworthy partner for businesses seeking seamless, secure, and scalable digital signing solutions. With nearly 2 decades of expertise in identity verification and background screening, AuthBridge has extended its capabilities to offer cutting-edge eSign solutions tailored for businesses of all sizes.

Advantages Of Using Aadhaar eSign With AuthBridge

  1. End-to-End Digital Ecosystem
    AuthBridge provides a complete digital document journey—from identity verification to electronic signing—all within one integrated platform. This ensures businesses can eliminate delays and reduce operational overheads.
  2. Seamless Integration
    AuthBridge’s Aadhaar eSign services are built to integrate effortlessly with existing business workflows, such as CRM, ERP, and HRMS systems. This adaptability allows businesses to quickly adopt eSign without disrupting operations.
  3. Scalability for High-Volume Needs
    AuthBridge’s platforms are designed to handle high transaction volumes, making them suitable for businesses managing bulk signing requirements. Whether you’re onboarding thousands of customers or signing vendor contracts, AuthBridge ensures a smooth experience.
  4. Uncompromised Security
    With state-of-the-art encryption and compliance with data privacy regulations, AuthBridge ensures that every document signed using Aadhaar eSign is secure, tamper-proof, and legally binding.
  5. Cost-Effective Solutions
    AuthBridge offers transparent and competitive pricing, enabling businesses to manage signing costs efficiently while delivering a superior customer experience.
  6. Regulatory Compliance
    AuthBridge’s Aadhaar eSign services comply with the provisions of the Information Technology Act, 2000, ensuring that every signature holds legal validity. This is particularly critical for businesses operating in highly regulated industries like BFSI and healthcare.

With solutions like SignDrive, AuthBridge empowers businesses to embrace paperless workflows. SignDrive combines Aadhaar eSign with advanced features like document tracking, multi-party signing, and real-time authentication, making it a comprehensive choice for B2B operations.
For example, consider a financial institution onboarding new corporate clients. AuthBridge’s Aadhaar eSign enables quick and secure contract execution without the need for in-person interactions. The result? Faster turnaround times, reduced paperwork, and enhanced client satisfaction.

FAQs

DSC is a physical USB-based digital signature issued after physical verification, while eSign is an Aadhaar-based online signature requiring no hardware, both legally valid under the IT Act, 2000 for different use cases.

DSC or eSign mode refers to the two legally recognized methods of digital signing—DSC involves using a USB-based digital signature certificate, while eSign is an Aadhaar-linked online signature method.

Aadhaar eSign is an electronic signature service based on Aadhaar authentication, enabling users to sign documents digitally. It is legally valid under the Indian IT Act, 2000, and leverages Aadhaar-linked OTP or biometric verification for secure, paperless, and instant document signing.

Digital Signature Certificates (DSCs) are typically issued with a validity of one or two years, as per the guidelines on the MCA website.

To verify an Aadhaar eSign, download the digitally signed document and open it in a PDF reader like Adobe Acrobat. Click the signature panel to view details and verify that the certificate is issued by any licensed Certifying Authority under the IT Act, 2000. Ensure the signature validity is marked as “Valid” in the software.

Certifying Authorities issue Digital Signature Certificates to individuals after verifying their application credentials, with validity typically ranging from 2 to 3 years.

Yes, using eSign is safe when implemented through secure platforms compliant with legal frameworks like the IT Act, 2000 in India. It ensures document integrity, authenticity, and non-repudiation using Aadhaar-based authentication or other valid methods.

A Digital Signature Certificate (DSC) is mandatory for certain categories, such as e-verification of returns filed by companies, political parties, and individuals whose accounts require auditing under Section 44AB of the Income Tax Act. For others, it is optional.

By Abhinandan, ago
KYB in gaming industry importance

Why KYB Matters In The Gaming Industry

The real money gaming industry is at an important junction. With markets expanding and regulatory frameworks tightening, the operational complexities of managing compliance have multiplied. While Know Your Customer (KYC) guidelines are well-established to verify individual players, businesses in this sector are now facing equal pressure for Know Your Business (KYB) processes to ensure trust and compliance within their partner networks.

For gaming platforms, especially those relying on affiliates and vendors to drive user acquisition and monetisation, KYB offers an amazing solution to verify the legitimacy and integrity of their business partners. This process isn’t just about meeting regulatory demands; it’s about safeguarding operations against risks like fraud, money laundering, and reputational damage. The gaming ecosystem, where stakes are high and transactions are instantaneous, calls for streamlined KYB protocols that blend efficiency with thoroughness.

The Need For KYB In The Gaming Industry

The online gaming industry operates within an ecosystem where multiple entities—affiliates, payment processors, marketing partners, and vendors—converge to deliver seamless user experiences. However, this ecosystem’s reliance on external partnerships exposes gaming platforms to significant risks. Fraudulent affiliates, unverified vendors, and entities engaging in money laundering can tarnish a brand’s reputation, invite regulatory penalties, and remove player trust.

Talk to sales - AuthBridge

Why Is KYB Essential in Gaming?

Unlike KYC, which focuses on individual players, KYB targets businesses interacting with the platform. This is particularly relevant in real money gaming, where affiliate marketing drives a substantial portion of user acquisition. Affiliates often function independently, making it challenging for platforms to assess their ethical and operational integrity without comprehensive verification protocols. KYB helps to:

  1. Detect Fraudulent Affiliates
    Fraudulent businesses can employ tactics like multi-accounting or unauthorised promotions, which not only violate compliance standards but also harm legitimate operators. KYB ensures that affiliates are genuine entities with verifiable business credentials.
  2. Prevent Money Laundering
    Regulators are increasingly scrutinising online platforms for anti-money laundering (AML) compliance. KYB helps mitigate risks by evaluating the financial standing and transactional behaviour of business partners.
  3. Maintain Regulatory Compliance
    Countries like India, operating under laws such as the DPDP Act, require gaming platforms to conduct exhaustive due diligence on their business affiliates. Failure to meet these requirements can lead to hefty penalties and business disruptions.
  4. Foster Trust and Transparency
    A verified partner network ensures smooth collaboration, enhances reputational credibility and builds long-term trust with stakeholders.

The Scope of KYB in Real Money Gaming

KYB comprises more than just verifying a partner’s business registration. It delves into assessing their legal standing, ownership structures, financial records, and even their adherence to ethical standards. This depth of analysis enables gaming platforms to build a robust, transparent ecosystem aligned with compliance mandates.

Challenges In Implementing KYB For Gaming Platforms

While the benefits of KYB in the gaming industry are evident, implementing these processes comes with its own set of challenges. Gaming platforms, especially those in the real money gaming sector, operate in a highly fluid environment with rapid partner onboarding, high transaction volumes, and evolving regulatory frameworks. These factors can make robust KYB implementation a complex and resource-intensive endeavour.

  • Fragmented Regulatory Conditions

The gaming industry often operates across multiple jurisdictions, each with its own set of compliance requirements. For instance, in India, businesses must adhere to anti-money laundering regulations alongside the DPDP Act, while in other regions, GDPR or equivalent data protection laws apply. This diversity necessitates a KYB framework capable of accommodating region-specific compliance requirements without creating bottlenecks.

  • Limited Transparency Among Affiliates

Many affiliates operate as small businesses or even individuals, making it difficult to access verifiable information about their operations. Traditional verification methods may not be sufficient for smaller entities lacking a robust digital or financial footprint.

  • Time-Consuming Processes

Manual KYB checks, involving document verification, ownership vetting, and financial assessments, can delay partner onboarding. This is a critical concern for gaming platforms reliant on rapid growth through affiliate and vendor networks.

  • Emerging Threats Like Synthetic/Forged Identities

Advanced fraud methods, such as synthetic identities or shell companies, complicate the process of distinguishing legitimate entities from fraudulent ones. Without cutting-edge verification tools, these threats can slip through traditional checks.

  • Cost Implications

Developing and maintaining in-house KYB solutions can be prohibitively expensive, particularly for mid-sized platforms. Outsourcing such operations to third-party providers adds another layer of cost considerations, albeit with operational efficiencies.

  • Balancing Compliance With User Experience

A cumbersome KYB process can discourage affiliates and partners from engaging with the platform. Striking the right balance between thorough due diligence and a smooth onboarding experience is a persistent challenge for gaming operators.

How Technology Streamlines KYB For Gaming Businesses

The complexities of implementing KYB in the gaming industry underscore the need for technology-driven solutions. Advanced tools and platforms are now pivotal in enabling gaming businesses to conduct thorough due diligence while maintaining efficiency and scalability. These technologies not only automate cumbersome manual processes but also provide actionable insights that improve decision-making.

  • Automated Business Verification

Technology platforms like API-driven KYB solutions allow gaming operators to instantly verify a partner’s legitimacy by accessing global business registries. These systems can validate company registration numbers, tax identification details, and financial standings in real time, eliminating the delays associated with manual verification.

  • Enhanced Risk Scoring and Monitoring

Artificial Intelligence (AI) and Machine Learning (ML) are transforming KYB by providing dynamic risk-scoring capabilities. These algorithms analyse data points such as ownership patterns, transaction behaviours, and historical compliance records to assess the credibility of affiliates and vendors. Continuous monitoring ensures that gaming platforms remain compliant even after onboarding.

  • Biometric Verification for Key Individuals

KYB solutions are increasingly integrating biometric technologies to verify the identities of key individuals within partner organisations. These tools cross-reference biometric data with government records, ensuring the authenticity of stakeholders and preventing the use of synthetic identities.

  • Real-Time Financial Health Checks

Advanced KYB systems leverage integrations with financial databases to evaluate the financial stability of partners. Tools such as bank account verification, credit assessments, and transaction pattern analysis ensure affiliates and vendors are solvent and compliant with anti-money laundering (AML) standards.

  • Streamlined Workflow Through Integration

Modern KYB platforms offer seamless integration with existing gaming management systems via APIs. This enables operators to consolidate verification processes into their existing workflows, reducing operational friction and maintaining consistency across departments.

How AuthBridge Drives KYB Efficiency?

AuthBridge leverages cutting-edge technologies to empower gaming platforms with comprehensive KYB solutions. By automating the verification of affiliates, vendors, and partners, AuthBridge ensures that gaming businesses can navigate the complexities of compliance with ease. Its suite of solutions integrates seamlessly into business workflows, offering fast, reliable, and cost-effective verification processes tailored for the dynamic gaming ecosystem.

Conclusion

The gaming industry’s evolution into a highly competitive and regulated space has made Know Your Business (KYB) a cornerstone of sustainable growth. For platforms operating in the real money gaming sector, KYB is not merely a compliance requirement but a strategic imperative to foster trust, ensure operational integrity, and mitigate risks. By embracing technology-driven KYB solutions, gaming businesses can streamline affiliate and vendor verification processes, navigate regulatory landscapes with confidence, and establish a strong foundation for long-term success.

As gaming platforms scale and diversify, the need for robust partner networks is more critical than ever. Advanced KYB solutions, such as those offered by AuthBridge, empower businesses to go beyond basic verification and achieve comprehensive compliance effortlessly. With features like automated business verification, real-time financial health checks, and AI-powered risk assessments, AuthBridge provides a one-stop solution for gaming companies looking to stay ahead in a competitive market.

FAQs

KYB (Know Your Business) refers to the process of verifying the identity, legitimacy, and financial integrity of a business entity. It is a regulatory requirement for companies, particularly in financial services, to prevent fraud, money laundering, and other illicit activities.

A KYB (Know Your Business) strategy ensures compliance with regulatory requirements by verifying the identity and legitimacy of businesses through checks like ownership details, financial records, and legal documentation. It aims to mitigate risks of fraud, money laundering, and other illicit activities.

The function of Know Your Business (KYB) is to verify the identity, legitimacy, and compliance of businesses by assessing their ownership, operations, and regulatory adherence. This ensures trust, reduces fraud, and meets legal obligations for anti-money laundering (AML) and counter-terrorism financing (CTF).

KYB (Know Your Business) is required by financial institutions, fintechs, and businesses to verify and monitor vendors, partners, or corporate clients, ensuring compliance with AML/CFT laws and mitigating fraud and regulatory risks.

The purpose of Know Your Business (KYB) is to verify the legitimacy, ownership, and operations of businesses to prevent fraud, ensure compliance with regulatory standards, and mitigate risks related to financial crimes like money laundering and terrorism financing.

KYB (Know Your Business) ensures compliance with regulatory requirements, mitigates risks of fraud and financial crimes, and enhances trust by verifying the legitimacy and ownership structure of businesses. It streamlines onboarding while safeguarding against reputational and financial risks.

By Abhinandan, ago
What is Significant Beneficial owner (SBO)

Significant Beneficial Owner (SBO) In India: Definition & Guide

Significant Beneficial Ownership (SBO) has gained considerable attention in India, especially following the updates in November 2023 to the Companies Act, 2013 and the Limited Liability Partnership (LLP) Act, 2008. Recognised globally as a measure to increase transparency and accountability, SBO requirements in India aim to unveil the individuals who have actual control or substantial influence over a corporate entity, even when their ownership is indirect. These regulations form part of India’s broader agenda to combat financial malpractices, including money laundering, tax evasion, and fraud.

What Is A Significant Beneficial Owner (SBO)?

In the Indian context, the concept of SBO mandates that any individual who holds significant indirect rights, whether through voting shares, financial benefits, or decision-making power, must be identified and disclosed. The term “Significant Beneficial Owner” (SBO), specifically under the Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023, is defined as:

An individual who, acting alone, jointly, or through one or more persons or trusts, holds certain rights or entitlements within a reporting limited liability partnership (LLP). Specifically, an SBO must meet at least one of the following criteria:

  1. Contribution: Holds indirectly or together with direct holdings, at least 10% of the contribution in the LLP.
  2. Voting Rights: Holds at least 10% of the voting rights related to management or policy decisions in the LLP.
  3. Profit Participation: Has the right to receive or participate in at least 10% of the total distributable profits or other distributions in a financial year, through indirect holdings alone or along with direct holdings.
  4. Influence or Control: Has the right to exercise, or exercises, significant influence or control in any manner other than through direct holdings alone.

This definition is further qualified by rules that exclude individuals who only hold rights directly, without meeting the indirect or combined thresholds stated above.

The Ministry of Corporate Affairs (MCA) has enforced these obligations to create a transparent corporate ecosystem where investors, regulators, and stakeholders can trust information about a company’s ultimate controllers. For entities structured as LLPs, similar SBO requirements now apply, introducing new compliance layers for firms and individual beneficiaries alike.

The SBO rules affect not only the companies but also various stakeholders and the broader investment climate. The ongoing drive towards transparent ownership structures reflects India’s commitment to aligning with international standards set by organisations like the Financial Action Task Force (FATF). 

Criteria for Identifying Significant Beneficial Owners in India

The regulations surrounding Significant Beneficial Ownership (SBO) in India were significantly revised with the 2023 amendment, introducing a more stringent framework for identifying and declaring beneficial owners in Limited Liability Partnerships (LLPs) and companies. The amendment, enacted by the Ministry of Corporate Affairs (MCA) in November 2023, aims to address gaps in transparency, especially concerning entities with complex ownership structures. The 2023 SBO rules place increased responsibility on LLPs and companies to identify individuals who exert significant control, whether directly or indirectly.

Key Definitions Around SBO Under The 2023 Amendment

  1. Significant Beneficial Owner (SBO): Under the 2023 rules, an SBO is an individual who holds at least 10% of either the contribution, voting rights, or distributable profits in a partnership or company. This ownership can be indirect or combined with any direct holdings. Notably, this threshold for SBO identification aligns with global standards, ensuring that entities with any significant influence are documented.
  2. Indirect and Direct Holdings: The amendment specifies that an individual is considered an SBO if they hold rights or entitlements both indirectly and directly in an entity. For instance, if an individual controls an entity that, in turn, holds a stake in a company or LLP, their indirect stake must be calculated in the total ownership assessment.
  3. Control and Significant Influence: The amendment expands on “control” to include the right to appoint majority partners, or to control policy decisions, whether directly or through a group of people acting in concert. This criterion ensures that those who wield control without a direct ownership stake are not overlooked.
Talk to sales - AuthBridge

Other Scenarios For SBO Determination

The amendment has introduced detailed explanations to capture different ownership structures, making the rules comprehensive yet nuanced. Key scenarios are covered as follows:

  • Body Corporate Ownership: If an individual holds a majority stake in a corporate partner of an LLP or company, they are deemed to have an SBO stake.
  • Trust Ownership: When the partner is a trust, the SBO status is conferred based on whether the individual is a trustee (for discretionary trusts), a beneficiary (for specific trusts), or a settlor (for revocable trusts).
  • Pooled Investment Vehicles (PIVs): For entities controlled by PIVs, individuals such as general partners, investment managers, or CEOs with influence over the PIV are considered SBOs, especially if these PIVs are based in jurisdictions with weak regulatory standards.

Other Key SBO Compliance Requirements

The 2023 SBO rules mandate that LLPs and companies actively identify SBOs within their structure. Reporting LLPs and companies are now required to file returns with the Registrar of Companies using Form BEN-2 within 30 days of identifying an SBO. They must also maintain a register of SBOs, available for inspection by regulatory authorities and stakeholders, to foster transparency and corporate responsibility.

Obligation To Declare Indirect Control

A significant feature of the 2023 amendment is the requirement for SBOs to declare any indirect control they possess. This includes control via family trusts, subsidiary companies, or holding companies. For example, if an individual holds majority control in an LLP’s corporate partner or the ultimate holding entity, that individual must declare themselves as an SBO.

The amended rules also include provisions for situations where multiple individuals act jointly with a common intent, allowing regulators to identify SBOs even in cases where ownership is shared across several individuals or trusts.

Penalties And Non-Compliance With SBO Guidelines

Non-compliance with the 2023 SBO rules can lead to strict penalties. LLPs and companies that fail to declare SBOs or provide inadequate information are at risk of tribunal-directed sanctions, which may include restrictions on profit distribution, suspension of voting rights, or transfer restrictions. The MCA has underscored these enforcement measures to ensure adherence to SBO regulations and to discourage any attempts to obscure actual ownership.

SBO Compliance Obligations For Companies And LLPs

The updated Significant Beneficial Ownership (SBO) regulations have transformed compliance obligations for companies and Limited Liability Partnerships (LLPs) in India. The revised framework now imposes stricter duties on entities to accurately identify, record, and report individuals with significant beneficial control, addressing prior gaps in transparency. Companies and LLPs must now uphold clear records of ownership and control, particularly where indirect ownership structures could obscure true influence.

Identification And Notification Requirements

Under the current regulations, companies and LLPs must take proactive steps to identify and notify SBOs:

  1. Notice Requirement: Companies and LLPs are required to issue formal notices to any non-individual partners or shareholders whose stakes exceed 10%, whether in terms of contribution, voting rights, or share of profits. The notice (Form LLP BEN-4 for LLPs) aims to gather information on potential SBOs, ensuring all possible avenues of control or influence are assessed.
  2. Duty to Declare: Identified SBOs are required to submit a declaration in Form LLP BEN-1 (for LLPs) within 90 days of the regulations’ effective date or 30 days of any change in ownership status. This formal declaration serves to create a verified record of each SBO’s status.
  3. Submission of Form BEN-2: Companies and LLPs must report each identified SBO to the Registrar of Companies within 30 days, formalising the disclosure and providing a verifiable ownership structure for regulatory purposes.
  4. Register of SBOs: Entities are also required to maintain a register of SBOs (Form LLP BEN-3 for LLPs), available for inspection during business hours. This register supports transparency by making ownership records accessible to regulatory authorities and stakeholders.

Responsibilities Of SBOs

The updated regulations place additional responsibilities on the SBOs themselves. Individuals who meet the criteria for significant beneficial ownership must declare their status within the prescribed timeline. Failing to comply may lead to limitations on their rights within the company or LLP, such as suspension of voting privileges or profit distribution entitlements. These measures ensure that SBOs are accountable for transparently disclosing their interests and influence.

Compliance Timelines And Record-Keeping

The regulations mandate strict timelines for compliance to ensure timely and consistent reporting. Initial SBO declarations must be filed within 90 days of the rule’s effective date, with any subsequent changes reported within 30 days. This ensures records accurately reflect current ownership structures, preventing attempts to obscure significant control.

Exemptions To SBO Compliance

Certain entities are exempt from these disclosure obligations, reducing unnecessary reporting. Exemptions include those entities where the Central Government, State Government, or local authority holds a stake, as well as specific investment vehicles regulated by the Securities and Exchange Board of India (SEBI), such as mutual funds, alternative investment funds (AIFs), and real estate investment trusts (REITs).

Tribunal Powers And Penalties For Non-Compliance

The regulations empower tribunals to impose penalties for non-compliance or inadequate disclosures. Companies or LLPs failing to fulfil SBO obligations may face sanctions, including:

  • Profit Distribution Restrictions: SBOs may have their profit distribution rights temporarily suspended.
  • Voting Rights Suspension: The tribunal may suspend an SBO’s voting rights, restricting their influence over company or LLP decisions.
  • Restrictions on Interest Transfer: The tribunal may limit the transfer of interests associated with the SBO’s contribution, effectively preventing transfers until compliance is achieved.

Impact On Indian Corporate Governance

These SBO regulations underscore the importance of transparency and corporate governance in the Indian business landscape. By requiring that beneficial ownership details be disclosed and verified, the rules align Indian practices with international standards, fostering greater trust among investors and mitigating risks associated with hidden ownership. This contributes to a more robust corporate environment in India, reinforcing accountability and financial transparency at every level.

Impact Of SBO Regulations On India’s Corporate

The SBO regulations have introduced significant changes in the Indian corporate landscape, fostering a more transparent and accountable business environment. By focusing on the identification and disclosure of ultimate beneficial owners, these regulations aim to prevent financial misconduct and reduce the risks associated with concealed ownership structures. The broader impact of these rules has resonated across various areas of corporate governance, investor relations, and regulatory compliance.

Enhanced Corporate Governance

A primary goal of the SBO regulations is to strengthen corporate governance by making it harder for individuals to hide behind complex ownership structures. Companies and LLPs are now compelled to establish transparent reporting mechanisms that accurately reveal who truly controls or benefits from their operations. This transparency ensures that ownership and control are aligned with the company’s declared interests, reducing conflicts of interest and fostering a culture of integrity. The benefits of enhanced corporate governance are twofold: companies gain credibility, and investors feel more secure knowing they can verify ownership details.

Increased Investor Confidence

Investor trust is crucial to attracting and retaining capital, and the SBO regulations play a key role in supporting this trust. By mandating the disclosure of all individuals with substantial control or influence, the regulations allow retail and institutional investors to make more informed decisions. Access to clear ownership records means investors can assess any potential conflicts of interest or risks associated with hidden control. In particular, retail investors have shown growing interest in Indian markets, with the number of registered retail investors on the Bombay Stock Exchange increasing by 27% year-on-year as of December 2023. The SBO regulations contribute to an environment where both foreign and domestic investors have confidence in the market’s transparency and fairness.

Alignment With International Standards

Globally, the Financial Action Task Force (FATF) and similar bodies have long advocated for transparency in beneficial ownership to combat money laundering and financial fraud. The SBO rules position India as a proactive participant in the global movement towards financial transparency, aligning Indian practices with those of developed economies. Many countries, including the United Kingdom, the United States, and European Union members, have enacted similar rules to mandate ownership disclosure. By aligning with these standards, Indian companies are more likely to attract foreign investment and participate smoothly in international trade, given the assurance that they adhere to globally recognised practices.

Compliance Burden And Operational Challenges

While the SBO regulations promote transparency, they also introduce a compliance burden for companies and LLPs. The need to constantly monitor ownership structures, issue notices, and maintain up-to-date records can be resource-intensive, particularly for smaller entities with limited compliance teams. Moreover, entities with complex ownership layers may find it challenging to trace indirect ownership accurately. Despite these challenges, the regulations also serve as a deterrent to opaque ownership structures, prompting companies to simplify their ownership models where feasible.

Legal Clarity And Dispute Resolution

The SBO regulations have also brought clarity to the legal framework surrounding corporate ownership and control. With clear guidelines on defining and identifying an SBO, companies now have a straightforward process to follow. The regulations also empower companies to enforce compliance by approaching tribunals to restrict the rights of non-compliant SBOs, adding a layer of enforcement that discourages attempts to evade disclosure. This provision reduces the likelihood of disputes over ownership and control, as the rules now offer a transparent pathway for identifying SBOs and enforcing compliance.

Overall Economic Impact

In the long term, the SBO regulations are expected to contribute to the Indian economy by creating a stable and transparent business environment that attracts both domestic and international capital. Companies that comply with these regulations are seen as more trustworthy, making their shares and securities more appealing to investors. This increase in transparency can lower the cost of capital, support economic growth, and enhance India’s position as a global economic player. By safeguarding the interests of investors and enforcing corporate accountability, the SBO regulations have laid the groundwork for a more resilient and investor-friendly market.

FAQs around Significant Beneficial Owner (SBO)

A Significant Beneficial Owner (SBO) is an individual who directly or indirectly holds at least 10% of the ownership, voting rights, or profit-sharing rights in a company or LLP, or has significant influence or control over it.

Significant beneficial ownership (SBO) in an LLP refers to an individual who, alone or with others, directly or indirectly:

  1. Holds at least 10% of the LLP’s contribution,
  2. Controls at least 10% of voting rights on management decisions,
  3. Receives or participates in at least 10% of the distributable profits, or
  4. Exercises significant influence or control in ways beyond direct ownership.

To obtain the Significant Beneficial Owner (SBO) ID, an individual must:

  1. Submit a declaration using Form LLP BEN-1 to the reporting Limited Liability Partnership (LLP) if they meet the SBO criteria (e.g., holding at least 10% of contribution, voting rights, or profit participation).
  2. The LLP then files this information with the Registrar in Form LLP BEN-2.
  3. Upon verification, the Registrar records the individual as an SBO and assigns an SBO ID as part of the compliance documentation under the Companies Act, 2013.

This process ensures the identification and documentation of SBOs within the reporting LLP.

To calculate the Significant Beneficial Ownership (SBO) percentage in an LLP, follow these steps:

  1. Identify Direct and Indirect Holdings: Determine the individual’s percentage of direct contribution, voting rights, or profit participation, as well as any indirect holdings through trusts, partnerships, or other entities.

  2. Aggregate Holdings: Add the direct and indirect holdings (if any) to get the total percentage.

  3. Assess SBO Criteria: Check if the aggregated percentage meets or exceeds 10% for contribution, voting rights, or profit participation. If it does, the individual qualifies as an SBO.

Only holdings that cumulatively reach at least 10% are relevant for SBO classification.

In India, Significant Beneficial Ownership (SBO) Articles refer to rules established under the Companies Act, 2013, and the Limited Liability Partnership Act, 2008, which require individuals or entities to disclose their significant beneficial ownership in companies and LLPs. Under these regulations, an individual is classified as an SBO if they, directly or indirectly, hold at least 10% of shares, voting rights, or the right to receive at least 10% of distributable profits in an entity. This disclosure mandate aims to increase transparency in business ownership, prevent illicit activities like money laundering, and ensure compliance with the government’s financial regulations.

The main difference between a Beneficial Owner (BO) and a Significant Beneficial Owner (SBO) lies in the extent of their control or interest in a company or LLP:

  1. Beneficial Owner (BO): Generally, any person who enjoys the benefits of ownership (like profits or voting rights) in a company or LLP, even if they are not listed as the legal owner.

  2. Significant Beneficial Owner (SBO): Specifically defined in regulations, an SBO is a beneficial owner who holds a substantial level of control or interest, typically defined as at least 10% of shares, voting rights, or profit participation in the entity, or who has the right to exert significant influence or control.

In essence, while all SBOs are beneficial owners, not all beneficial owners qualify as SBOs due to the specific thresholds that define “significant” ownership or control.

By Abhinandan, ago
What is UBO?

What Is Ultimate Beneficial Owner/Ownership (UBO)? Definition & Guide

What Is Ultimate Beneficial Owner/Ownership (UBO)?

Ultimate Beneficial Ownership (UBO) refers to identifying the individual(s) who hold significant ownership or control over a business entity, directly or indirectly. This concept has gained traction globally, particularly as countries ramp up anti-money laundering (AML) and counter-terrorism financing (CTF) efforts. In India, identifying UBOs is pivotal in combating financial crimes, enhancing corporate transparency, and ensuring compliance with both local and international regulatory standards.

UBO information is key to Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols in finance and corporates. By identifying UBOs, companies and financial institutions can understand who truly owns and benefits from their business relationships, thereby preventing illicit activities. For example, the Indian government has introduced amendments to the Prevention of Money Laundering Act (PMLA) and other regulations to mandate the disclosure of UBOs in various contexts. These reforms align with international standards, such as those set by the Financial Action Task Force (FATF), to ensure that Indian businesses are held to the same transparency requirements as their global counterparts.

UBO compliance involves detailed verification processes, which often require businesses to disclose details about shareholders with a significant ownership stake, typically defined as owning 25% or more of the company. In India, however, this threshold can vary depending on regulatory context, with certain financial bodies like SEBI and the RBI imposing slightly differing criteria based on risk and industry requirements. India’s regulatory landscape regarding UBO disclosure is constantly changing, and companies need to stay updated on these requirements to avoid compliance risks.

Ultimate Beneficial Owner/Ownership (UBO) Regulations In India

Regulatory Landscape And Legal Framework For UBO Compliance

India’s approach to Ultimate Beneficial Ownership (UBO) regulation is rooted in its broader anti-money laundering (AML) and counter-terrorism financing (CTF) objectives, aimed at bringing transparency to financial transactions. The regulatory framework surrounding UBO disclosure has evolved significantly, particularly since India committed to aligning with the global standards set forth by the Financial Action Task Force (FATF). Key Indian authorities such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Ministry of Corporate Affairs (MCA) are instrumental in enforcing UBO disclosure requirements, ensuring that businesses operate within transparent and legally compliant structures.

The primary legislation enforcing UBO requirements in India is the Prevention of Money Laundering Act (PMLA) 2002, which has undergone numerous amendments to address changing compliance needs. Under PMLA guidelines, businesses, particularly those in finance and corporate services, must identify and verify the ultimate beneficial owners behind corporate clients. This verification process includes confirming the identity of shareholders who hold at least 25% of ownership in a private entity or those who exert significant control over the company’s operations. This threshold is consistent with FATF recommendations, though certain sectors may enforce stricter thresholds as necessary.

Another notable regulation is The Companies (Significant Beneficial Owners) Rules, 2018, which mandates that Indian companies disclose details about significant beneficial owners, defined as individuals holding 10% or more of a company’s shares or exercising a comparable degree of control. This rule aims to prevent the misuse of corporate entities for money laundering or financing terrorism by ensuring that those with significant influence or financial interest are registered and accountable.

The RBI has also issued guidelines that compel banks and financial institutions to conduct UBO checks as part of their KYC processes. These guidelines require banks to maintain accurate and updated UBO information, ensuring that every account linked to a corporate entity is screened for transparency. Similarly, SEBI regulations require entities in capital markets to conduct UBO identification, especially when dealing with Foreign Portfolio Investors (FPIs), who often have complex ownership structures involving multiple layers of investment vehicles.

UBO Compliance Challenges And Industry Impact

While these regulations enhance transparency, they present compliance challenges for Indian companies. Small- and medium-sized enterprises (SMEs), which form the backbone of India’s economy, often struggle with the resources and expertise needed to meet UBO requirements. The documentation, verification, and continuous monitoring of beneficial owners demand a robust compliance infrastructure, which can strain budgets and manpower, especially in the case of multi-tiered ownership structures. Larger corporations, particularly those engaged in cross-border trade, must navigate the complexity of consolidating UBO information across various jurisdictions to ensure compliance with Indian regulations.

Benefits Of Ultimate Beneficial Owner/Ownership (UBO) Compliance

Enhancing Financial Transparency And Security

UBO compliance offers several benefits to businesses and the wider economy, primarily by increasing financial transparency and reducing risks associated with illegal financial activities. For India, where the financial sector has historically grappled with issues like shell companies and undisclosed ownership structures, UBO compliance plays a critical role in exposing and dismantling layers of opaque ownership. By identifying the individuals who truly control or benefit from corporate entities, authorities and financial institutions can better safeguard the integrity of India’s financial ecosystem.

Through UBO compliance mechanisms, authorities traced these entities to their ultimate owners, uncovering widespread instances of regulatory evasion. This move underscored the value of UBO transparency in preventing the misuse of corporate structures and contributed to the government’s efforts to enhance financial accountability.

Strengthening Investor Confidence And Corporate Accountability

A robust UBO framework also strengthens investor confidence by ensuring that businesses operate transparently, making India a more attractive destination for both domestic and foreign investors. Investors, particularly institutional ones, seek assurances that their capital is protected and that the businesses they invest in have no undisclosed ownership risks. One factor contributing to this growth is the country’s strengthened regulatory mechanisms around UBO, as they reduce the perceived risk of financial misconduct.

By requiring companies to disclose UBO information, India aligns its regulatory standards with international best practices, such as those recommended by the Financial Action Task Force (FATF). This alignment not only boosts investor confidence but also enables smoother cross-border financial activities. Foreign investors are more likely to engage with companies that demonstrate transparency in their ownership structures, making UBO compliance a competitive advantage for businesses looking to attract international capital.

Reducing Compliance Risks And Enhancing KYC Efficiency

UBO compliance is also essential in reducing compliance risks associated with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. For Indian banks and financial institutions, verifying UBOs is now a critical part of Know Your Customer (KYC) processes, allowing them to screen accounts more effectively and detect potential red flags. Financial institutions that fail to comply with UBO regulations may face substantial penalties and reputational damage. 

Moreover, UBO transparency streamlines the onboarding process for financial clients by simplifying KYC procedures. With clear UBO information, financial institutions can expedite the due diligence process, enhancing the overall efficiency of client onboarding and reducing delays. This is particularly valuable in India’s expanding financial sector, where banks and other financial entities are under pressure to maintain stringent compliance while ensuring operational efficiency.

Challenges And Best Practices For Ultimate Beneficial Owner/Ownership (UBO) Compliance In India

Key Challenges In UBO Identification

Identifying and verifying Ultimate Beneficial Owners (UBOs) remains a complex challenge for many Indian companies, especially due to the diverse ownership structures and limited technological resources available for compliance. The layered and sometimes opaque ownership structures prevalent in both domestic and multinational corporations make UBO identification particularly arduous. Small and medium-sized enterprises (SMEs) in India, which form a significant portion of the corporate sector, often struggle to allocate resources for comprehensive UBO checks.

Further complicating this process is the frequent use of offshore accounts and complex investment vehicles, which can obscure the identity of beneficial owners. For instance, Indian companies with international operations must navigate foreign UBO laws that may conflict with domestic requirements, leading to inconsistent disclosures. This inconsistency can create substantial compliance gaps, particularly for sectors like banking and finance, where due diligence is critical. 

Regulatory Compliance And Cost Implications

The financial cost associated with implementing effective UBO checks is another significant challenge. For many companies, meeting UBO compliance requirements means investing in specialised KYC and AML technology, staff training, and regular monitoring systems. Large corporations often have the means to build dedicated compliance departments to handle UBO checks; however, smaller businesses struggle to keep up, leading to potential compliance risks. Moreover, frequent changes in UBO regulations require continuous updates to compliance frameworks, which can further strain budgets.

In the case of the financial sector, regulatory bodies like SEBI mandate stricter due diligence for high-risk clients, which translates into added costs.

Talk to sales - AuthBridge

Best Practices For Effective Ultimate Beneficial Ownership Compliance

To address these challenges, companies can adopt best practices that improve the efficiency and accuracy of UBO identification while minimising compliance costs. Here are a few practical strategies:

  1. Invest in Advanced KYC and AML Technology: Leveraging technologies like artificial intelligence (AI) and machine learning (ML) can significantly improve UBO detection accuracy by automating data analysis and identifying hidden patterns in ownership structures. For instance, using automated KYC solutions enables financial institutions to screen customers quickly, reducing onboarding times while maintaining compliance.
  2. Implement a Centralised Data Repository: Establishing a centralised database for UBO information can help companies maintain updated records of ownership structures, ensuring that compliance checks are based on accurate and comprehensive data. This repository can also facilitate easier information sharing among stakeholders, improving transparency across departments.
  3. Regularly Update Compliance Frameworks: As UBO regulations evolve, companies must continuously monitor regulatory changes and update their compliance protocols accordingly. Establishing a dedicated team to oversee regulatory compliance can ensure that companies remain proactive in adapting to new requirements. Additionally, periodic audits of UBO compliance measures can help identify and address any potential gaps in real-time.
  4. Conduct Enhanced Due Diligence for High-Risk Clients: For clients or investors with complex or international ownership structures, companies should perform enhanced due diligence (EDD) to uncover any hidden beneficial owners. EDD measures, such as conducting independent background checks and consulting third-party data providers, help in verifying the accuracy of UBO information and mitigating potential compliance risks.
  5. Provide Ongoing Training for Compliance Teams: Given the complex nature of UBO regulations, providing regular training for compliance personnel is essential. Training ensures that team members stay informed about the latest regulatory developments and best practices in UBO verification. This can enhance the overall efficiency and effectiveness of compliance programs and reduce the risk of regulatory breaches.

Conclusion

In the years ahead, UBO compliance will be essential for Indian businesses aiming to grow sustainably. While the challenges of UBO disclosure are huge, embracing best practices and innovative solutions can simplify compliance and protect against financial and reputational risks. For companies, financial institutions, and regulatory bodies alike, prioritising UBO transparency is not just a legal obligation but a smart step toward creating a safer and more transparent business environment in India.

FAQs on Ultimate Beneficial Owner (UBO)

A UBO, or Ultimate Beneficial Owner, is the individual who ultimately owns or controls a company or asset, even if it’s held under another name or through a series of entities. UBOs are usually the ones who receive the primary benefits, profits, or control of the organization, often with at least 25% ownership or voting rights.

UBO, or Ultimate Beneficial Owner, is the individual who ultimately owns or controls a business, even if hidden behind layers of ownership structures

An Ultimate Beneficial Owner (UBO) is the individual who ultimately owns or controls a company and benefits from its activities, even if not directly listed as the owner. Typically, a UBO holds at least 25% of the company’s shares or voting rights, either directly or indirectly

An example of an ultimate beneficial owner (UBO) is an individual who ultimately owns or controls a company, even if their ownership is indirect. For instance, if “Person A” owns 60% of “Company B” through a holding entity “Company C,” Person A is considered the UBO of Company B, as they exercise ultimate control through Company C. UBOs are often identified for compliance and regulatory purposes, ensuring transparency in business ownership.

An Ultimate Beneficial Owner (UBO) is typically understood as a person who owns more than 25% of a company’s shares or has more than 25% control over its voting rights, though the exact definition can vary by country.

UBO (Ultimate Beneficial Owner) is calculated by tracing an entity’s ownership structure to identify individuals who directly or indirectly hold significant control or benefit from it, typically owning 25% or more of shares or voting rights. The calculation involves examining shareholder data, ownership tiers, and any nominee arrangements to identify natural persons who have a substantial controlling influence in the entity.

Yes, in India, disclosing the Ultimate Beneficial Owner (UBO) is mandatory for various entities. The Ministry of Corporate Affairs (MCA) requires companies to identify and report individuals holding significant beneficial ownership, defined as holding at least 10% of shares or exercising significant influence or control. Additionally, the Securities and Exchange Board of India (SEBI) mandates that certain Foreign Portfolio Investors (FPIs) provide granular UBO details to enhance transparency and prevent market manipulation.

To identify the Ultimate Beneficial Owner (UBO) in India, follow these steps:

  1. Define UBO Criteria: Per regulatory guidelines (such as RBI and SEBI), a UBO is generally an individual holding 10-25% ownership or control in a company or trust.
  2. Examine Ownership Structure: Review the shareholding or partnership structure to identify individuals with substantial direct or indirect ownership.
  3. Check Voting Rights & Control: Analyze voting rights, decision-making authority, and any control through other entities.
  4. Use KYC & Verification Tools: Utilize KYC, AML, and digital verification services to validate identities.
  5. Conduct Periodic Reviews: Regularly review UBO information for any changes in ownership or control.

Yes, a CEO can be considered a UBO (Ultimate Beneficial Owner) if they have significant ownership, control, or benefit in the company. In India, the UBO is typically identified as someone owning more than 25% of shares or with substantial control over the company’s operations and decisions, as per regulations like the Prevention of Money Laundering Act (PMLA).

Yes, multiple individuals can be Ultimate Beneficial Owners (UBOs) of a company in India. According to regulatory norms, especially under the Prevention of Money Laundering Act (PMLA) and guidelines from the Reserve Bank of India (RBI), UBO status applies to all individuals who directly or indirectly hold a significant ownership stake, typically 10-25%, or exercise significant control over the company. In cases of joint ownership or shared control, each qualifying individual is considered a UBO.

Proof of ultimate beneficial ownership (UBO) involves documents that identify individuals who have significant control over a company, typically those owning 25% or more of the business, even if held indirectly. In India, UBO proof is required to comply with KYC and AML regulations, helping prevent money laundering and fraud. Common documents include government-issued ID, PAN card, shareholding structure, and declarations detailing ownership levels. Financial institutions, companies, and regulatory bodies often request these to verify the actual individuals benefiting from business activities.

In KYC (Know Your Customer) processes, UBO (Ultimate Beneficial Owner) refers to the individual(s) who ultimately own or control a company or organization. In India, identifying UBOs is mandatory for regulatory compliance to prevent money laundering and terrorism financing. The UBO must be disclosed if they hold a 25% or greater stake in a company, or in some cases, a 10% stake for high-risk entities. Financial institutions are required to verify UBOs to ensure transparency in business operations.

Yes, a shareholder can be an Ultimate Beneficial Owner (UBO) if they hold a significant ownership stake or control over a company, typically defined as 25% or more of shares or voting rights under Indian regulations.

If there is no Ultimate Beneficial Owner (UBO) identified, companies in India must disclose this in compliance with regulatory requirements. They may need to report senior managing officials or other individuals with significant control to fulfill KYC and AML obligations under the Prevention of Money Laundering Act (PMLA) and related regulations.

UBO screenings provide essential insights into the backgrounds of key individuals, enabling companies to make well-informed decisions in financial transactions and third-party engagements. By identifying and verifying Ultimate Beneficial Owners, businesses can assess potential risks, ensure compliance with regulatory standards, and protect themselves against fraud, money laundering, and reputational damage.

A UBO, or Ultimate Beneficial Owner, is an individual who ultimately owns or controls a business entity, even if ownership is indirect. Typically, a UBO holds at least 25% of ownership or voting rights, either directly or through other entities.

Not all companies have an Ultimate Beneficial Owner (UBO). UBO typically applies to entities where ownership or control can be traced to specific individuals, such as in partnerships, private limited companies, and trusts. However, publicly listed companies are often exempt from UBO identification, as their ownership is dispersed among numerous shareholders and regulated by public market standards. Identifying a UBO is crucial for entities with complex ownership structures to ensure transparency and compliance with regulatory requirements.

By Abhinandan, ago
What is Third Party Verification?

What Is Third-Party Verification (TPV)? All You Need To Know

Ensuring the accuracy and authenticity of information provided by vendors, suppliers, and other third parties is essential for mitigating risks and ensuring compliance. Third-party verification (TPV) serves as a crucial process, allowing companies to validate the credentials, claims, and transactions of external entities. By utilising independent verification from a neutral party, such as AuthBridge, businesses can trust the data they rely on for important decisions, whether it’s for vendor onboarding, background checks, or regulatory compliance.

This blog talks about the significance of third-party verification, its key processes, and how it contributes to building trust, reducing fraud, and adhering to legal standards. Whether you’re looking to improve vendor management or strengthen your due diligence process, understanding the core aspects of third-party verification is essential for modern business operations.

What Is Third-Party Verification?

Third-party verification (TPV) is the process in which an external organisation validates the information, claims, or actions of a company or individual on behalf of another entity. This could include verifying a customer’s details, or a vendor’s credentials, or ensuring compliance with industry regulations. The use of third-party verifiers is especially critical when businesses need impartial validation, as it eliminates conflicts of interest and ensures objective results.

Typically, third-party verification ensures that companies can make informed decisions based on verified information, minimising the risk of errors, fraud, and non-compliance. The third-party verification process covers a wide range of industries and scenarios, from financial audits to verifying security practices in supply chains. It helps build confidence among stakeholders, including investors, regulators, and customers, by adding an extra layer of credibility to the business’s operations.

Types And Use Cases of Third-Party Verification

Third-party verification (TPV) can be tailored to meet the specific needs of businesses across various industries. Depending on the nature of the transaction or the relationship being verified, TPV can serve different purposes, from ensuring vendor integrity to confirming customer intentions. Below are the common types of third-party verification and their relevant use cases:

1. Vendor and Supplier Verification

Companies rely heavily on external vendors and suppliers for various products and services. Ensuring the legitimacy and credibility of these partners is crucial for minimising risks in the supply chain. Vendor verification involves checking the credentials, financial stability, and past performance of a supplier before engaging in any business relationship.

  • Use Case: A manufacturer sourcing raw materials might engage a third-party verifier to assess a new supplier’s financial health, ethical practices, and adherence to environmental regulations. This ensures the supplier aligns with the company’s standards and mitigates the risk of supply chain disruptions or reputational damage.

2. Third-Party Background Checks

Third-party verification is often used for background checks in hiring, particularly for critical roles where trust and compliance are paramount. The background check process involves verifying the candidate’s education, employment history, criminal records, and other personal details to prevent fraudulent hires.

  • Use Case: Companies in the financial sector may hire a third-party agency to conduct a thorough background check on potential employees. This ensures that the candidates have a clean history and can be trusted with sensitive financial information.

3. Regulatory and Compliance Verification

With changing regulations, businesses must ensure that their partners and vendors comply with industry-specific rules and laws. Third-party verification helps validate whether a vendor or business partner adheres to necessary regulatory compliance standards, such as data privacy regulations or industry-specific certifications.

  • Use Case: A healthcare company partnering with a third-party software provider may require compliance verification to ensure that the provider adheres to HIPAA (Health Insurance Portability and Accountability Act) standards for data security and patient privacy.

4. Financial Verification

For businesses engaging with vendors, customers, or investors, ensuring financial credibility is paramount. Third-party financial verification involves reviewing an entity’s financial records, credit ratings, and other financial data to confirm its financial standing and reliability.

  • Use Case: A bank considering a loan for a small business may request a third-party financial verification of the borrower’s assets and financial history to assess the risk before approving the loan.

5. Security and Data Privacy Verification

In sectors like IT, where data privacy and security are top priorities, third-party verification is often used to ensure that vendors or service providers follow best practices for data protection. Security verification ensures that partners comply with the necessary security protocols, such as encryption standards and cybersecurity regulations.

Use Case: An e-commerce platform might engage a third-party verifier to audit and verify the data security protocols of a payment gateway provider, ensuring that the gateway complies with PCI-DSS (Payment Card Industry Data Security Standard) requirements.

Talk to sales - AuthBridge

Benefits Of Third-Party Verification

Third-party verification (TPV) offers a multitude of advantages for businesses, ranging from enhanced trust to better compliance management. By involving an impartial, external party to verify information, companies can ensure transparency, reduce risks, and improve overall efficiency. Below are some key benefits of implementing third-party verification:

1. Enhanced Trust and Credibility

Engaging a third-party verifier adds an extra layer of confidence for all stakeholders involved, including customers, investors, regulators, and business partners. By using independent verification services, businesses can demonstrate their commitment to accuracy and reliability.

2. Reduced Risk of Fraud

One of the primary reasons businesses invest in third-party verification is to mitigate the risk of fraud. Whether it’s verifying a vendor’s credentials, checking a new hire’s background, or ensuring that a customer’s financial details are accurate, TPV helps reduce fraudulent activities. This is especially crucial for sectors like finance, healthcare, and e-commerce, where fraud can have significant consequences.

3. Compliance With Regulatory Standards

In today’s highly regulated industries, businesses must adhere to strict compliance guidelines. Third-party verification plays a pivotal role in ensuring that all partners, vendors, and internal processes comply with relevant laws and standards, such as data privacy regulations or industry-specific certifications. Non-compliance can result in fines, legal issues, and reputational damage.

4. Streamlined Due Diligence

The due diligence process can be complex, especially when dealing with new vendors, partners, or clients. By outsourcing the verification process to a third party, businesses can streamline their due diligence process, ensuring that all necessary checks are completed without overburdening internal teams. This not only saves time but also provides more comprehensive verification results.

5. Objective and Impartial Evaluation

One of the most important aspects of third-party verification is that it provides an objective, unbiased evaluation. Internal assessments may carry inherent biases, especially if they are conducted by individuals with vested interests. TPV eliminates this issue, offering an impartial assessment of the information being verified.

6. Improved Efficiency Through Automation

Many third-party verification providers use advanced technology to automate certain aspects of the verification process, such as background checks or vendor risk assessments. This not only accelerates the verification process but also reduces human error, ensuring that businesses receive accurate and timely results.

Challenges Of Third-Party Verification

While third-party verification (TPV) offers numerous benefits, it also comes with certain challenges that businesses must navigate to ensure its successful implementation. Understanding these obstacles can help organizations better prepare and mitigate potential issues. Here are some of the key challenges associated with third-party verification:

1. Data Privacy and Security Concerns

One of the primary challenges in third-party verification is the handling of sensitive data. Verifiers often require access to confidential information, such as financial records, personal identification, or internal business data, to perform their tasks. Ensuring that this data is protected throughout the verification process is critical, especially in sectors with stringent data protection regulations like healthcare, finance, and e-commerce.

2. Regulatory Compliance Complexity

As third-party verifiers operate across various industries and regions, they must navigate a complex regulatory landscape. Different countries and industries have specific laws regarding regulatory compliance, and TPV providers must stay up-to-date with evolving rules. Ensuring that all third-party vendors meet local and international legal requirements can be a challenge for companies working in multiple markets.

3. Cost Implications

The cost of employing third-party verification services can sometimes be a barrier for businesses, especially small and medium-sized enterprises (SMEs). Although the benefits of TPV often outweigh the costs in terms of risk reduction and compliance, the upfront investment in hiring a reputable verification provider can be significant.

4. Integration With Existing Systems

Another challenge companies face is integrating third-party verification solutions with their existing infrastructure. Businesses with legacy systems may find it difficult to seamlessly incorporate external verification tools, which could lead to operational delays or inefficiencies. Ensuring that the verification process integrates smoothly with internal systems is crucial for avoiding workflow disruptions.

5. Dependence on Third-Party Reliability

When outsourcing verification to a third-party vendor, businesses are dependent on the reliability and accuracy of the service provider. If the verifier fails to deliver accurate results, it could lead to legal and financial repercussions. Therefore, selecting a trustworthy and reliable third-party verification service is essential, but reliance on an external entity also poses risks.

6. Potential for Delays

In some cases, third-party verification can introduce delays, especially when dealing with a high volume of checks or complex assessments. If the third-party verifier does not operate efficiently or is overburdened with work, it could slow down critical processes such as vendor onboarding, due diligence, or background checks.

Best Practices For Implementing Third-Party Verification

Implementing an effective third-party verification (TPV) system requires careful planning, adherence to industry standards, and the use of best practices to ensure successful outcomes. By following these guidelines, businesses can optimize their verification processes, minimize risks, and enhance overall efficiency. Below are key best practices for integrating third-party verification into business operations:

1. Select Reputable Verification Providers

Choosing the right third-party verification provider is crucial to ensuring reliable and accurate results. Companies should thoroughly vet potential TPV vendors based on their experience, certifications, and reputation in the industry. Selecting a vendor that has a proven track record, particularly in your specific sector, can help avoid errors and ensure compliance with relevant regulations.

2. Ensure Compliance With Data Privacy Laws

Given the sensitive nature of the information involved in third-party verification processes, businesses must ensure that they and their TPV providers comply with all applicable data privacy laws. This includes local regulations, such as the General Data Protection Regulation (GDPR) in Europe or the DPDP in India, as well as industry-specific data security standards.

3. Integrate Verification Into Existing Workflows

One of the key challenges businesses face when implementing third-party verification is the integration of these processes with existing workflows. To ensure efficiency and minimize disruption, companies should integrate TPV seamlessly into their systems, particularly in areas such as vendor onboarding, risk assessment, and compliance management.

4. Conduct Regular Audits and Assessments

Even after implementing third-party verification, businesses should perform regular audits and assessments to ensure the effectiveness and accuracy of the verification process. This includes checking the performance of TPV providers, verifying compliance with regulatory requirements, and reviewing the quality of the verification reports.

5. Use Technology to Enhance Accuracy and Speed

Automation and advanced technology can significantly improve the efficiency and accuracy of third-party verification processes. By leveraging tools like artificial intelligence (AI) and machine learning, businesses can streamline verification tasks and reduce the likelihood of errors or delays.

6. Develop Clear Vendor and Supplier Agreements

When working with external partners, it’s important to establish clear agreements regarding the verification process. These agreements should outline the responsibilities of each party, including the scope of the verification, timelines, and any compliance obligations. Having well-defined contracts can help avoid misunderstandings and ensure accountability.

Conclusion

Third-party verification (TPV) is essential for businesses to ensure accuracy, reduce risks, and maintain compliance in today’s complex and globalised marketplace. By employing independent verifiers, companies can confidently validate vendor credentials, conduct background checks, and meet regulatory standards, all while enhancing operational efficiency. As technology continues to evolve, the integration of remote verification methods will further streamline the TPV process, making it a critical tool for securing trust and ensuring transparency in business operations.

FAQs around Third-party verification (TPV)

Third-party verification refers to the process of using an independent, external entity to confirm the accuracy, legitimacy, or compliance of information provided by an individual or organization. It ensures objectivity and credibility by having a neutral party validate claims such as identity, qualifications, or legal standing. 

Examples of third-party verification include:

  1. Background Checks – Verifying employment history, education, and criminal records through an external agency.
  2. KYC (Know Your Customer) – Confirming identity documents, such as Aadhaar or passport, via authorized third-party services.
  3. Supplier Audits – Assessing suppliers’ compliance with quality or regulatory standards by independent auditors.
  4. Financial Audits – Independent review of a company’s financial statements to ensure accuracy and compliance.
  5. Certification Services – External verification of industry certifications like ISO or PCI-DSS compliance.

The benefits of third-party verification include:

  1. Enhanced Credibility: It provides independent validation, boosting trust among customers, clients, and partners.
  2. Risk Mitigation: Reduces exposure to fraud, compliance breaches, and operational risks by ensuring accuracy in information.
  3. Regulatory Compliance: Helps meet industry and government regulations by verifying identities, credentials, or business details.
  4. Streamlined Onboarding: Speeds up processes like vendor, partner, or employee onboarding through reliable verification systems.
  5. Improved Decision Making: Provides verified data to make informed, secure business decisions.

Third-party Background Verification (BGV) involves an external agency conducting checks on a candidate’s credentials and history on behalf of a company. The process typically includes:

  1. Identity Verification – Confirming the individual’s identity through official documents.
  2. Educational and Employment History – Verifying academic qualifications and previous work experience.
  3. Criminal Record Check – Checking for any criminal background.
  4. Address Verification – Confirming current and past addresses.
  5. Reference Checks – Contacting previous employers or referees to assess performance and character.
  6. Credit Check – Reviewing financial stability for specific roles.

The third-party verification process involves an independent organization confirming the accuracy and authenticity of information provided by a business or individual. This verification is commonly used in areas such as employee background checks, vendor assessments, and customer due diligence. The process typically includes verifying identity, financial records, legal standing, or compliance with regulations to ensure trustworthiness and mitigate risks for the requesting party.

By Abhinandan, ago
New GST Invoice Management System

New GST Invoice Management System Goes Live On October 1: Key Details

The Goods and Services Tax Network (GSTN) has announced a significant enhancement to the GST portal with the introduction of the Invoice Management System (IMS). Set to go live on 1st October, this new feature is designed to streamline the process of managing invoices between suppliers and recipients, ultimately improving the accuracy of Input Tax Credit (ITC) claims, as per an advisory by the GST Network. The IMS offers taxpayers the ability to accept, reject, or keep invoices pending directly within the system, which can be crucial for maintaining compliance and avoiding errors in GST returns.

Efficient invoice management is critical for businesses of all sizes, particularly in the context of GST compliance. With the complexity of the GST system, errors in invoicing can lead to significant financial penalties and disruptions in business operations. The new IMS addresses these challenges by providing a more transparent and manageable process for handling invoices, ensuring that only genuine and accurate invoices contribute to ITC calculations.

Key Features Of The New GST Invoice Management System

The soon-to-be-introduced Invoice Management System (IMS) is poised to change the way taxpayers interact with their invoices on the GST portal. Below are some of the key features that will enhance the GST compliance process for businesses:

Invoice Acceptance, Rejection And Pending Status

One of the most significant aspects of the IMS is the ability for taxpayers to take decisive action on invoices received from their suppliers. After the supplier uploads an invoice into their GSTR-1, GSTR-1A, or IFF, it becomes visible in the recipient’s IMS dashboard.

New Dashboard IMS
Source: GST Portal

At this point, the recipient has the option to:

  • Accept the Invoice: Accepted invoices will be automatically included in the recipient’s GSTR-2B and will be considered for ITC eligibility. The GST on these accepted invoices will also auto-populate in GSTR-3B.
  • Reject the Invoice: If an invoice is deemed incorrect or fraudulent, it can be rejected. Rejected invoices will not be included in GSTR-2B, thereby preventing any erroneous ITC claims.
  • Keep the Invoice Pending: If the recipient is uncertain about the validity of an invoice, they can keep it pending. This invoice will not be included in GSTR-2B or GSTR-3B until further action is taken. This feature is particularly useful when additional verification is required.

Impact On Input Tax Credit (ITC)

The IMS plays a crucial role in determining the ITC available to taxpayers. Only invoices that are accepted by the recipient will be reflected in the GSTR-2B, which serves as the basis for ITC claims. This ensures that only valid and verified invoices contribute to the ITC, reducing the risk of errors and fraudulent claims.

Additionally, if no action is taken on an invoice, it will be considered as “Deemed Accepted” and will automatically be included in the GSTR-2B. This feature minimises the compliance burden on taxpayers, allowing them to focus on more critical aspects of their business.

Invoice Amendments And Their Implications

Suppliers can amend invoices before filing their GSTR-1. If an invoice is amended, the changes will be reflected in the IMS, and the amended invoice will replace the original one on the recipient’s dashboard. The recipient must then decide whether to accept, reject, or keep the amended invoice pending.

In cases where an invoice is amended after it has been included in a filed GSTR-1A, the amended invoice will affect the ITC for the subsequent month. This ensures that any changes made by the supplier are accurately reflected in the recipient’s GST returns, maintaining the integrity of the GST system.

Workflow And Implementation Of The GST Invoice Management System (IMS)

The workflow of the GST Invoice Management System (IMS) is designed to integrate seamlessly with the existing processes on the GST portal, ensuring that the system is both user-friendly and efficient. Here’s how the IMS is implemented and how it fits into the broader GST compliance framework:

Invoice Flow In IMS

The flow of invoices within the IMS begins when a supplier uploads an invoice to their GSTR-1, GSTR-1A, or IFF. Once uploaded, the invoice becomes visible in the recipient’s IMS dashboard, where they can take one of three actions:

  • Accept: Accepted invoices are automatically included in the recipient’s GSTR-2B and are considered for ITC eligibility. The corresponding GST amount is also populated in the recipient’s GSTR-3B as eligible ITC.
  • Reject: Rejected invoices are excluded from the GSTR-2B, ensuring that no erroneous ITC is claimed.
  • Pending: Invoices that are marked as pending are not included in the GSTR-2B or GSTR-3B for the current month. These invoices remain in the IMS dashboard for further action in subsequent months.

Handling Amendments And Updates

The IMS is equipped to handle amendments made by suppliers to their invoices. If a supplier amends an invoice before filing their GSTR-1, the amendment is reflected in the IMS, replacing the original invoice on the recipient’s dashboard. The recipient must then decide how to proceed with the amended invoice.

For invoices amended after inclusion in a filed GSTR-1A, the impact on ITC is deferred to the subsequent month. This ensures that all amendments are accurately tracked and reflected in the GST returns, preserving the integrity of the data.

IMS Dashboard
Source: GST Portal

Sequential Generation Of GSTR-2B

A unique aspect of the IMS is the sequential generation of GSTR-2B. The system will only generate the GSTR-2B for a given period after the GSTR-3B for the previous period has been filed. This sequential approach ensures that all invoices and amendments are accounted for in the correct period, preventing discrepancies in ITC claims.

Special Considerations For QRMP Taxpayers

For taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme, the IMS provides tailored functionality. Invoices uploaded through IFF by QRMP taxpayers flow into the IMS, but GSTR-2B for these taxpayers is generated on a quarterly basis, rather than monthly. This adjustment aligns with the QRMP scheme’s reporting requirements, ensuring that compliance remains streamlined for these taxpayers.

The IMS is designed to work with various GST compliance software, offering automation and integration capabilities that enhance the efficiency of managing invoices. Businesses using GST e-invoicing software, GST invoice reconciliation tools, or other related solutions can benefit from the seamless integration of IMS into their existing workflows. This allows for automated updates and real-time tracking of invoice statuses, further simplifying GST compliance.

Also Read

Talk to sales - AuthBridge
By Abhinandan, ago
gst collection August 2024

GST Collection Rises 10% YoY In August 2024

The Goods and Services Tax (GST) is an important parameter of India’s economic health, and the GST collection for August 2024 has once again highlighted the strength of the Indian economy. With the total GST collection for August 2024 reaching ₹1,74,962 crore, this marks a significant 10% year-on-year growth compared to August 2023. This blog explores the GST collection data for August 2024, analyses the trends, and compares it with the GST Collection data for July 2024 to provide a detailed understanding of the ongoing economic dynamics.

GST Collection August 2024: Key Figures 

August 2024 witnessed a robust GST revenue of ₹1,74,962 crore, which includes:

  • Central GST (CGST): ₹30,862 crore
  • State GST (SGST): ₹38,411 crore
  • Integrated GST (IGST): ₹93,621 crore
  • Cess: ₹12,068 crore

This strong performance reflects a 10% growth compared to August 2023, when the total collection was ₹1,59,069 crore. The data indicates sustained economic activities and improved GST compliance across the country.

Comparative Analysis Of GST Collection: August 2024 vs. July 2024

When we compare the GST collection of August 2024 with July 2024, which recorded a total GST revenue of ₹1,82,075 crore, there is a slight dip of around 4%. However, this fluctuation is typical in the monthly GST collection trends due to the varying economic activities across months. Despite the slight decrease from July, the year-on-year growth is a positive sign of the economy’s steady recovery.

  • CGST and SGST Comparison:
    • July 2024: CGST ₹32,386 crore; SGST ₹40,289 crore
    • August 2024: CGST ₹30,862 crore; SGST ₹38,411 crore

CGST and SGST collections in August 2024 were slightly lower than in July 2024. The CGST dropped by approximately 4.7%, while the SGST fell by around 4.6%. This minor decline could be attributed to seasonal factors and the timing of tax payments.

  • IGST and Cess Comparison:
    • July 2024: IGST ₹96,447 crore; Cess ₹12,953 crore
    • August 2024: IGST ₹93,621 crore; Cess ₹12,068 crore

IGST and Cess collections also observed a marginal decrease in August compared to July, by 2.9% and 6.8%, respectively. However, the overall year-on-year growth remains strong, reflecting a healthy and growing economy.

State-wise GST Collection August 2024

The state-wise GST collection data for August 2024 presents a mixed bag, with some states showing significant growth while others experienced a slight decline. Here are the top-performing states for GST collection for August 2024:

    • Maharashtra: ₹26,367 crore, a 13% increase from August 2023
    • Delhi: ₹5,635 crore, marking a substantial 22% growth from August 2023
    • Haryana: ₹8,623 crore, with a 12% growth from August 2023
    • Assam: ₹1,353 crore, showing an 18% increase from August 2023
    • Madhya Pradesh: ₹3,438 crore, showing a 12% growth from August 2023

    On the other hand, states like Andhra Pradesh and Arunachal Pradesh saw a reduction in GST collections by 5% and 10%, respectively. This disparity highlights the varied economic activities and GST compliance levels across different regions of India.

    You can read the entire report of the GST Collection for August 2024 by clicking here.

    The GST collection trends for August 2024 are encouraging, with consistent year-on-year growth reflecting the resilience of the Indian economy. The slight monthly dip from July 2024 is not alarming but rather indicative of the usual fluctuations in economic activities and tax payments.

    Looking ahead, the government’s ongoing efforts to streamline GST compliance through the GST portal and regular updates to GST rates and returns are expected to sustain and even enhance this growth trajectory. Additionally, as the Indian economy continues to recover and expand, we can anticipate further improvements in GST revenue collections in the coming months.

    Talk to sales - AuthBridge

    Conclusion

    The GST collection for August 2024, amounting to ₹1,74,962 crore, marks a significant milestone in India’s fiscal journey. The 10% year-on-year growth is a testament to the robustness of the Indian economy and the effectiveness of GST as a revenue collection mechanism. As we move forward, the focus will remain on enhancing compliance, optimising GST rates, and ensuring that the GST system continues to support India’s economic aspirations.

    By Abhinandan, ago
    TPRM Software Best 2024 In India

    13 Best Third-Party Risk Management Software In 2024

    As businesses become more and more interconnected, effectively managing third-party risks has become extremely important to protecting operations and ensuring compliance with various regulations. Third-party risk management (TPRM) software is an important tool in this effort, enabling organisations to assess, monitor, and mitigate the risks associated with their vendors, suppliers, and external partners. 

    Top 13 Third-Party Risk Management (TPRM) Softwares In India

    Whether your organisation requires TPRM software designed for large enterprises, solutions with AI-driven capabilities, or platforms that emphasise regulatory compliance, several leading providers offer robust options. Below, we explore the 13 most effective TPRM software solutions in 2024, in no particular order:

    1. AuthBridge

    AuthBridge offers a comprehensive Third-Party Risk Management (TPRM) solution designed to help businesses manage, monitor, and mitigate risks associated with their third-party relationships. The solution is built on advanced technology and provides a robust framework for businesses to ensure compliance, reduce vulnerabilities, and protect their reputation.

    End-to-End Risk Management

    • Holistic Risk Assessment: AuthBridge provides a full-spectrum assessment of third-party risks, covering financial, legal, regulatory, operational, and reputational areas. This allows businesses to gain a complete understanding of their third-party entities.
    • Supply Chain Due Diligence: Ensures continuous due diligence throughout the entire relationship with third parties, not just at the onboarding stage, helping identify and mitigate risks over time.

    Compliance and Regulatory Assurance

    • Comprehensive Compliance Checks: Detailed checks against local and international regulations, including Anti-Money Laundering laws, and data protection standards like the DPDP Act, and GDPR, are conducted to ensure full compliance.
    • Audit-Ready Documentation: The platform provides the necessary documentation and reports to demonstrate compliance during audits, reducing the risk of regulatory penalties.

    Continuous Monitoring and Alerts

    • Real-Time Monitoring: Continuous monitoring of third-party entities with real-time alerts on any changes in their status or risk profile helps businesses stay ahead of potential risks.
    • Automated Red Flag Alerts: The system includes automated alerts that flag suspicious activities or non-compliance issues, enabling immediate corrective actions.

    Technology-Driven Insights

    • AI-Powered Risk Analysis: Leveraging AI and machine learning to analyse large data sets, AuthBridge identifies patterns and anomalies that may indicate potential risks, enabling data-driven decision-making.
    • Customisable Dashboards: The platform offers customisable dashboards for a clear overview of the third-party risk landscape, aiding quick decisions and efficient management.

    Third-Party Screening and Verification

    • Thorough Background Screening: Extensive background checks on third-party entities, including verification of legal standing, financial health, and overall reputation, ensure credible and reliable partnerships.
    • Global Watchlist Screening: The solution includes screening against global sanctions, watchlists, and adverse media to prevent engagements with entities involved in illegal or unethical activities.

    Risk Scoring and Prioritisation

    • Dynamic Risk Scoring Models: Risk scores are assigned to third-party entities based on various factors, dynamically updated as new information becomes available, helping prioritise and address high-risk relationships.
    • Risk Mitigation Prioritisation: The solution assists in prioritising risk mitigation efforts based on risk scores, ensuring that resources are allocated effectively to manage the most critical risks.

    Efficient Onboarding and Contract Management

    • Streamlined Onboarding: The onboarding process for third-party vendors is automated, reducing the time and effort required while ensuring necessary due diligence before contract signing.
    • Contract Lifecycle Management: Tools for managing the entire lifecycle of third-party contracts, from initiation to renewal or termination, ensure risks are managed at every stage of the relationship.

    Industry-Specific Solutions

    • Tailored TPRM: Industry-specific TPRM solutions address unique risks faced by different sectors like BFSI, healthcare, manufacturing, and IT/ITES, ensuring relevant and actionable insights.

    Data Privacy and Security

    • Secure Data Handling: Ensures all data processed is handled securely with encryption and other advanced security measures to protect sensitive information from unauthorized access.
    • Data Protection Compliance: Designed to comply with global data protection regulations by being ISO/IEC 27001:2013 and SOC 2 Type II Certified, maintaining the highest standards of data privacy.
    GST Verification
    One Of The Many Instant Checks Powering AuthBridge's TPRM Solution

    2. UpGuard

    UpGuard is a robust third-party risk management software known for its comprehensive risk assessment capabilities. It categorises risks into six key areas: email security, website risks, phishing and malware, network security, brand protection, and reputation risk. UpGuard’s TPRM software is especially valuable for its pre-built questionnaires and libraries, which accelerate vendor assessments and improve third-party security postures. With a user-friendly interface and frequent updates, UpGuard is an excellent choice for businesses of all sizes looking for reliable TPRM software with automation and data privacy compliance features.

    3. SecurityScorecard

    SecurityScorecard excels in providing continuous security ratings across ten categories, making it a top TPRM provider for businesses needing comprehensive cybersecurity risk management. This third-party risk assessment software offers automated action plans to improve security scores, and its tools for compliance management and breach insights are indispensable for organisations prioritising regulatory compliance. SecurityScorecard is a versatile solution, suitable for small businesses and large enterprises alike, offering proactive risk mitigation and seamless compliance management.

    4. BitSight

    BitSight’s TPRM software leverages advanced algorithms and daily security assessments to minimise risks associated with third-party vendors. The platform’s continually updated Security Ratings provide a solid, data-driven foundation for evaluating and managing third-party risks. With features like automated vendor onboarding and data-driven validation of vendor responses, BitSight ensures that companies can make informed decisions. This makes it one of the best TPRM solutions for organisations looking for a blend of efficiency, accuracy, and continuous monitoring.

    5. OneTrust

    OneTrust’s TPRM software is tailored for businesses needing to adhere to strict data privacy and regulatory compliance standards, such as GDPR and HIPAA. The platform offers tools for data inventory mapping, privacy impact assessments, and automated workflows, all accessible through an intuitive web portal. While its advanced analytics and risk mitigation tools could be stronger, OneTrust remains a top choice for organisations that prioritise data privacy compliance and regulatory adherence in their third-party risk management processes.

    6. Prevalent

    Prevalent’s TPRM platform offers a comprehensive solution for mitigating security and compliance risks throughout the vendor lifecycle. Ideal for larger organisations or mid-sized companies with dedicated TPRM resources, Prevalent excels in providing continuous risk monitoring, automated assessments, and detailed risk scoring. With its strong vendor intelligence networks and flexible, hybrid approach, Prevalent delivers tailored solutions that offer a rapid return on investment, making it one of the top TPRM providers in the market.

    7. ProcessUnity

    ProcessUnity’s Vendor Risk Management (VRM) software streamlines risk and compliance programs by automating vendor assessment, monitoring, and management. This platform is particularly effective for large enterprises that require robust TPRM software with risk scoring and continuous monitoring capabilities. ProcessUnity’s customisation options and integration with other governance, risk, and compliance (GRC) tools make it a powerful choice for organisations aiming to manage third-party risks effectively.

    8. Centraleyes

    Centraleyes offers a cloud-based TPRM solution designed for scalability and customisation, providing a comprehensive console for overseeing and assessing risks. With features like an advanced risk register, real-time alerts, and customisable dashboards, Centraleyes ensures that security teams are promptly informed of any vulnerabilities. As businesses evolve, Centraleyes plans to integrate AI to further enhance risk assessment and mitigation processes, making it a forward-thinking choice for companies seeking TPRM software with AI and automation features.

    9. Diligent ThirdPartyBond

    Diligent’s ThirdPartyBond stands out for its advanced risk analytics powered by machine learning algorithms. This TPRM software offers features like KPI and KRI-driven reports, centralized third-party inventory, and adaptive vendor surveys with advanced risk-scoring. Although the platform’s editing features primarily rely on scripting, which may be challenging for non-technical users, its capabilities in monitoring SLA performance and managing contracts make it a valuable tool for enterprises needing a sophisticated TPRM solution with regulatory compliance features.

    10. Venminder

    Venminder is a user-friendly SaaS solution for third-party risk management, offering tools for contract management, vendor onboarding, risk assessments, and due diligence. The platform’s customisable vendor questionnaires, SLA management, and vendor scorecard tracking ensure comprehensive oversight of vendor relationships. Venminder’s extensive library of learning resources and scalable services make it an adaptable solution for organisations of any size looking for TPRM software that simplifies risk management processes.

    11. LogicGate

    LogicGate’s Risk Cloud is a highly configurable platform that streamlines governance, risk, and compliance processes. Its drag-and-drop interface automates tasks like vendor onboarding and risk surveying, making it easy for businesses to manage third-party risks without needing extensive technical skills. The platform’s real-time visibility into the risk landscape, coupled with integration with tools like Jira and Slack, makes LogicGate a versatile option for enterprises seeking TPRM software that enhances decision-making through data-driven insights.

    12. Archer

    Archer Third-Party Governance offers powerful tools for managing and mitigating third-party risks, with customisable risk indicators and advanced visualization tools like Bowtie Diagrams. The platform’s AI-powered assessments and industry-specific design enable organisations to evaluate risks comprehensively and address potential disruptions proactively. Archer’s cloud-based deployment ensures scalability, making it a versatile TPRM software solution for organisations looking to enhance business resilience and streamline vendor risk management.

    13. Panorays

    Panorays is a leading TPRM platform that efficiently manages cybersecurity risks associated with third-party vendors. It offers AI-powered cybersecurity questionnaires, extended attack surface assessments, and continuous monitoring, providing a comprehensive view of vendor security postures.  Panorays excels in regulatory compliance and quick risk alerts, making it a strong choice for businesses focused on enhancing cybersecurity resilience.

    Talk to sales - AuthBridge

    Conclusion

    As businesses become more interconnected, effective Third-Party Risk Management (TPRM) is essential to safeguard operations, compliance, and reputation. The right TPRM software helps mitigate risks associated with vendors and partners, offering solutions from AI-driven insights to robust compliance tools. The best TPRM platforms integrate seamlessly with existing processes, enhance risk management, and scale with your business. By evaluating each option’s features and strengths, organisations can choose a solution that protects their operations and supports long-term resilience.

    FAQs

    Third-Party Risk Management (TPRM) is a process companies use to identify, assess, and manage risks posed by vendors and partners. It involves risk assessment, due diligence, ongoing monitoring, and mitigation planning to ensure third parties don’t expose the company to operational, reputational, regulatory, or security risks.

    Yes, Third-Party Risk Management (TPRM) is considered part of Governance, Risk, and Compliance (GRC). TPRM focuses specifically on identifying, assessing, and managing risks associated with third-party relationships, while GRC provides a broader framework for managing governance, risk, and compliance across an organization. Integrating TPRM within GRC enhances overall risk visibility and helps ensure that third-party risks align with the organization’s compliance and governance objectives.

    A practical example of Third-Party Risk Management (TPRM) is a company onboarding a background verification provider to streamline employee checks. Before partnering, the company evaluates the provider’s data security measures, compliance with privacy regulations (like GDPR), and incident response capabilities to ensure that employee data remains secure throughout the verification process. This due diligence mitigates potential risks related to data breaches, regulatory fines, and reputational damage.

    The most famous tool in risk management is the Risk Assessment Matrix (RAM), also known as the Risk Matrix. It is widely used to evaluate the likelihood and impact of risks, helping organizations prioritize and address potential threats effectively. By plotting risks based on probability and severity, it aids in decision-making and ensures focused mitigation strategies.

    • SWOT Analysis: Evaluates Strengths, Weaknesses, Opportunities, and Threats to understand both internal and external factors impacting a project or organization. It helps in identifying risks and strategic opportunities.

    • Failure Mode and Effects Analysis (FMEA): Used to identify potential points of failure in a process or system and assess the severity, likelihood, and detectability of each failure, allowing for proactive mitigation.

    • Monte Carlo Simulation: A quantitative method that uses probability distributions to model and predict a range of possible outcomes, helping in assessing risk under uncertainty.

    • Bowtie Analysis: Visualizes the pathways and barriers of risk events from causes to consequences, helping in understanding how to prevent and mitigate risks effectively.

    • Risk Registers: A structured log of identified risks, their likelihood, impact, and assigned mitigations, allowing for consistent monitoring and updating.

    • Root Cause Analysis (RCA): Focuses on identifying the underlying causes of a risk or problem, enabling effective resolution and prevention.

    Third-Party Risk Management (TPRM) is a strategy focused on identifying, assessing, monitoring, and mitigating risks associated with an organisation’s third-party relationships. This includes risks from vendors, suppliers, contractors, and other external entities. The strategy involves due diligence processes, regular assessments, compliance checks, and monitoring mechanisms to ensure third-party activities align with the organisation’s security, legal, regulatory, and operational standards. A robust TPRM strategy helps organisations minimise exposure to operational disruptions, data breaches, regulatory violations, and reputational damage arising from third-party partnerships.

    In Third-Party Risk Management (TPRM), risk domains are the key areas where potential risks may arise from third-party relationships. Common risk domains include:

    1. Financial Risk: The risk of third-party financial instability affecting service continuity.
    2. Operational Risk: Risks related to operational failures, process disruptions, or supply chain issues.
    3. Compliance and Regulatory Risk: Risks of non-compliance with laws and regulations, leading to penalties or legal issues.
    4. Cybersecurity Risk: The risk of data breaches, cyber-attacks, and unauthorised data access.
    5. Reputational Risk: Risks that negatively impact a company’s reputation due to third-party actions.
    6. Strategic Risk: Risks arising from misaligned third-party strategies or goals affecting business objectives.
    7. Environmental, Social, and Governance (ESG) Risk: Risks related to sustainability, ethical practices, and corporate governance.

    The Third-Party Risk Management (TPRM) framework is a structured approach organisations use to identify, assess, manage, and mitigate risks associated with external vendors and partners. It involves evaluating potential risks these third parties may pose to the organisation’s operations, data, and reputation. The TPRM framework typically includes risk assessment, due diligence, continuous monitoring, and governance practices to ensure third-party relationships remain secure, compliant, and aligned with the organisation’s objectives.

    By Abhinandan, ago
    Digital Merchant Onboarding in India

    Digital Merchant Onboarding

    Introduction

    Digital Merchant Onboarding refers to the process of using digital tools and platforms to register, integrate, and enable merchants to transact on a business’s platform electronically. This process typically involves gathering necessary merchant information, verifying identities, and setting up transaction capabilities, all executed digitally. In India, with its rapidly expanding digital infrastructure and government initiatives like Digital India, the relevance of efficient digital onboarding systems cannot be overstated.

    Core Components of Digital Merchant Onboarding

    1. Identity Verification and KYC (Know Your Customer)

    2. Risk Assessment and Due Diligence

    • Purpose: To assess the potential risk the merchant might pose to the platform.
    • Process: Includes evaluating the merchant’s business model, financial health, creditworthiness, and transaction history. High-risk merchants might require additional scrutiny or higher levels of monitoring.
    • Outcome: Determines the level of oversight needed for each merchant and helps set appropriate transaction limits.

    3. Compliance and Regulatory Checks

    • Purpose: To ensure the merchant complies with relevant laws and industry regulations.
    • Process: Involves checking against anti-money laundering (AML) lists, and sanction lists, and ensuring compliance with PCI DSS (Payment Card Industry Data Security Standard) if the merchant will be handling card payments.
    • Tools: Automated compliance checks are often integrated into the onboarding system to streamline this process.

    4. Bank Account and Payment Gateway Integration

    • Purpose: To enable the merchant to receive payments and process transactions.
    • Process: Involves verifying the merchant’s bank account details and setting up payment gateways that will be used for processing transactions. This may include integration with various payment methods like credit cards, e-wallets, and bank transfers.
    • Security: Ensures that the payment infrastructure is secure and compliant with relevant financial regulations.

    5. Contract Signing and Agreement

    • Purpose: To formalize the relationship between the platform and the merchant.
    • Process: The merchant reviews and signs the terms and conditions, service agreements, and other legal documents. This can be done digitally through e-signature tools.
    • Outcome: Establishes the legal framework for the partnership, outlining the responsibilities and expectations for both parties.

    6. Platform Training and Support

    • Purpose: To ensure the merchant can effectively use the platform.
    • Process: Providing tutorials, guides, and training sessions to help merchants understand how to use the platform’s features, manage their accounts, and process transactions.
    • Support: Ongoing customer support is critical, especially during the initial phase, to help merchants resolve any issues quickly.

    7. Testing and Go-Live

    • Purpose: To ensure that all systems are functioning correctly before the merchant starts transacting.
    • Process: Involves conducting test transactions to check the integration of payment gateways, security protocols, and the overall user experience.
    • Go-Live: Once testing is successful, the merchant is given the green light to go live and start processing real transactions.

    8. Monitoring and Continuous Review

    • Purpose: To ensure ongoing compliance and detect any irregularities in the merchant’s transactions.
    • Process: Continuous monitoring of transactions for signs of fraud or suspicious activity, periodic reviews of the merchant’s performance, and updating KYC information as needed.
    • Tools: Automated monitoring systems that use AI and machine learning to flag unusual activity.

    Technological Advancements In Digital Onboarding

    Technological advancements have significantly transformed digital onboarding processes, making them faster, more secure, and more user-friendly. Here are some of the key technological developments that are driving innovation in digital onboarding:

    1. Artificial Intelligence (AI) and Machine Learning (ML)

    • Enhanced Data Processing: AI and ML algorithms can quickly analyze and process vast amounts of data, improving the accuracy and speed of identity verification. These technologies can automatically flag suspicious activities, predict risks, and offer personalized onboarding experiences based on customer data.
    • Fraud Detection: AI-driven systems can detect patterns and anomalies that might indicate fraud, reducing the likelihood of fraudulent accounts being onboarded. Machine learning models continuously improve by learning from new data, enhancing their ability to prevent fraud over time.

    2. Biometric Authentication

    • Fingerprint Scanning and Facial Recognition: Biometric technologies like fingerprint scanning, facial recognition, and iris scanning are now commonly used in digital onboarding to verify the identity of users securely and efficiently. These methods are more difficult to forge than traditional ID documents and provide an additional layer of security.
    • Liveness Detection: This technology ensures that the biometric data being presented is from a live person and not a spoofed or pre-recorded image, further enhancing security.

    3. Blockchain Technology

    • Decentralized Verification: Blockchain can be used to create a decentralized, immutable record of a user’s identity, which can be accessed by multiple parties securely. This reduces the need for repeated verification processes and can streamline onboarding across different platforms and services.
    • Smart Contracts: Blockchain-based smart contracts can automate the compliance and agreement processes during onboarding, ensuring that all terms are met before a service is activated.

    4. Robotic Process Automation (RPA)

    • Process Automation: RPA is used to automate repetitive tasks involved in onboarding, such as data entry, document verification, and compliance checks. This reduces the manual workload, minimizes errors, and speeds up the onboarding process.
    • Scalability: RPA enables businesses to handle large volumes of onboarding requests simultaneously without compromising accuracy or speed, making it ideal for scaling operations.

    5. Digital Identity Verification

    • eKYC (Electronic Know Your Customer): eKYC processes allow customers to verify their identities online without the need for physical document submission. This is often done through the use of government databases, such as Aadhaar in India, where user information is verified instantly.
    • Document Verification: Advanced OCR (Optical Character Recognition) technology allows for the automatic extraction and verification of information from uploaded documents, such as passports or driver’s licenses.

    6. Video KYC

    • Remote Verification: Video KYC has become increasingly popular, especially during the COVID-19 pandemic, as it allows for remote verification of a user’s identity. During a live video call, a representative verifies the customer’s documents and identity in real-time, ensuring that the person is physically present.
    • Integration with AI: AI can be integrated with video KYC to automatically analyze the video feed, verify document authenticity, and even detect signs of deception or fraud.

    7. Cloud Computing

    • Scalable Infrastructure: Cloud-based platforms offer scalable infrastructure for onboarding processes, allowing businesses to handle fluctuating volumes of new customers efficiently. Cloud solutions also support real-time data processing and storage, which is essential for fast and responsive onboarding.
    • Data Security: Cloud computing providers often include advanced security features such as encryption, multi-factor authentication, and secure access controls, helping to protect sensitive customer information during the onboarding process.

    8. Omnichannel Onboarding

    • Seamless Experience Across Channels: Omnichannel onboarding allows customers to start the onboarding process on one channel (e.g., a mobile app) and complete it on another (e.g., a web portal), without losing progress. This flexibility improves the customer experience and increases the likelihood of successful onboarding.
    • Unified Customer Profiles: Data from multiple channels is integrated into a single customer profile, providing a holistic view of the customer and ensuring consistency across all touchpoints.

    Challenges In Digital Merchant Onboarding

    Regulatory Hurdles

    The regulatory environment in India is dynamic and often presents multiple complex compliance requirements that can be intimidating for both new entrants and established players in the digital space. Adhering to guidelines set by bodies such as the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Information Technology Act poses considerable challenges, especially when these regulations frequently update to address emerging market realities and technological advancements.

    For instance, the RBI’s directive on KYC for financial institutions requires rigorous verification processes which can slow down the onboarding process if not managed with efficient digital tools. Additionally, the evolving framework around GST and digital payments mandates businesses to consistently update their compliance protocols, which can be resource-intensive.

    Strategies for Mitigation:

    • RegTech Solutions: Investing in Regulatory Technology (RegTech) can help manage and simplify compliance requirements. These solutions use AI and data analytics to ensure ongoing compliance and can adapt to regulatory changes in real-time, reducing the risk of non-compliance.
    • Continuous Training: Regular training sessions for legal and compliance teams can help businesses stay ahead of regulatory changes. Workshops and seminars conducted by regulatory bodies or industry associations can be invaluable.

    Technological Integration Challenges

    Integrating state-of-the-art digital onboarding solutions with older, legacy systems can create significant hurdles. These systems often cannot communicate seamlessly without substantial customization or a complete overhaul, which involves high costs and significant downtime—a luxury many businesses cannot afford.

    Furthermore, the diversity in software platforms used by various stakeholders in the merchant onboarding chain (e.g., banks, payment gateways, inventory management systems) increases complexity. Ensuring compatibility across all these systems is crucial but challenging.

    Strategies for Mitigation:

    • API-Led Connectivity: Using APIs to bridge different technologies is a cost-effective way of integration. APIs allow disparate systems to communicate with each other without extensive modifications.
    • Incremental Integration: Phasing the integration process can minimize disruption. Starting with non-critical functions and gradually scaling up can help manage the risks associated with integration.

    Merchant Education And Adoption

    Many merchants, especially small and medium-sized enterprises (SMEs) in semi-urban and rural areas, are either unaware of the benefits of digital onboarding or reluctant to adopt new technologies due to fear of the unknown. This reluctance is compounded by the diversity in educational and cultural backgrounds, making widespread adoption challenging.

    Strategies for Mitigation:

    • Localized and Simplified Training Material: Providing training and onboarding material in local languages and using relatable contexts can help in better understanding and quicker adoption.
    • Demonstrations and Pilot Projects: Showing the tangible benefits through demonstrations or pilot projects can help merchants understand the value of transitioning to digital platforms. Case studies highlighting success stories from similar businesses can also be very persuasive.
    Talk to sales - AuthBridge
    By Siddharth, ago
    AuthBridge-footer-logo2

    Stay Informed

    Keep yourself updated with the latest innovations in BGV & Authentication Technology from India’s leading Background Verification Company

    Sign up for our newsletter

    Solutions

    White-collar Verification
    Blue-collar Verification
    KYC Solutions
    AML Solution
    Digital Address Verification
    Risk Management
    Digital Underwriting
    All Solutions →

    Checks

    Employment Verification
    Education Verification
    Address Verification
    Aadhaar Card Verification
    Pan Card Verification
    Udyog Aadhaar Verification
    GST Verification
    View All Checks →

    Products

    iBRIDGE
    OnboardX
    TruthScreen
    SignDrive
    AuthLead
    WorkAttest
    Vault
    CorpVeda
    View All Products →

    Resources

    Blogs
    Customer Stories
    Whitepapers

    View all Resources →

    Company

    About Us

    Careers
    Newsroom

    Investor Relations

    Help Center

    For Clients
    For Candidates
    Youtube Facebook Linkedin
    AuthBridge is the #1 Authentication Company. Copyright 2023 AuthBridge, All Rights Reserved.
    Request A Demo
    Youtube Facebook Linkedin

    Hi! Let’s Schedule Your Call.

    To begin, Tell us a bit about “yourself”

    The most noteworthy aspects of our collaboration has been the ability to seamlessly onboard partners from all corners of India, for which our TAT has been reduced from multiple weeks to a few hours now.

    - Mr. Satyasiva Sundar Ruutray
    Vice President, F&A Commercial,
    Greenlam

    Thank You

    We have sent your download in your email.

    Case Study Download

    Want to Verify More Tin Numbers?

    Want to Verify More Pan Numbers?

    Want to Verify More UAN Numbers?

    Want to Verify More Pan Dob ?

    Want to Verify More Aadhar Numbers?

    Want to Check More Udyam Registration/Reference Numbers?

    Want to Verify More GST Numbers?