GDPR Certification: Meaning, Process & Legal Guide for Indian Companies

Data privacy is now a global concern. With businesses relying more on digital platforms, protecting personal information is more important than ever. The General Data Protection Regulation (GDPR), introduced by the European Union (EU), is one of the world’s strongest data protection laws. Although India is not part of the EU, Indian companies that deal with the data of EU citizens must still follow GDPR rules. One way to show this compliance is through GDPR certification. This article explains what GDPR certification means, why Indian companies need it and how they can get it, all from a legal perspective.

What is GDPR Certification?

GDPR certification is an official way to prove that your company follows GDPR rules. It shows that your business protects the personal data of EU citizens correctly and legally. This certification is mentioned under Articles 42 and 43 of the GDPR.

A company can get GDPR certification to show that it follows the General Data Protection Regulation. It proves that a company has put in place the right technical and organizational steps to legally handle EU personal data.

• It is voluntary: No one forces you to get certified but it can help a lot.

• Issued by certified bodies: Only approved organizations can provide this certification.

• Covers data handling: It can apply to one data processing activity or all of them.

• Valid for three years: After that, it needs renewal.

In simple terms, GDPR certification is like a stamp of approval that says your company handles data in a safe and lawful way.

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Why GDPR Certification Matters for Indian Companies

Many Indian companies, especially in IT, e-commerce and BPO sectors, work with customers from the EU. This means they collect or process data from EU citizens. Here’s why GDPR certification is important for them

• Legal Requirement: GDPR has rules that apply even to companies outside the EU, like in India, if they deal with EU data.

• Cross-Border Transfers: The EU restricts data transfers to countries without strong privacy laws. Certification helps prove your company is trustworthy.

• Builds Trust: Clients in the EU prefer working with certified companies as it assures them their data is safe.

• Competitive Advantage: Certification gives your company an edge when bidding for international projects.

• Reduces Legal Risk: If there is a data breach, certification helps show you followed proper procedures, which can reduce penalties.

Legal Basis of GDPR Certification

The rules for GDPR certification are spelled out in Articles 42 and 43. It is the law that these articles explain how certifications are made, who can give them out, and what companies must do legally even after they are certified. The legal rules for GDPR certification are found in two important sections

Article 42: Certification

• Encourages the creation of certification systems to prove GDPR compliance.

• These systems must be approved by national or EU-level authorities.

• Certification doesn’t replace legal duties, companies must still fully follow GDPR rules.

Article 43: Certification Bodies

• Only certain organizations, known as certification bodies, can issue GDPR certification.

• These bodies must be approved by national regulators and meet global standards (like ISO 17065).

• They must be neutral, skilled and trustworthy.

These articles form the legal foundation for GDPR certification.

Also, Get to Know About Data Protection and Privacy

Certification Criteria and Schemes

GDPR allows different industries to create custom certification schemes based on their specific needs. But these schemes must be approved by a GDPR authority. Indian companies can use these international schemes if they meet GDPR rules.

Some common GDPR-aligned certifications

• Europrivacy: A well-known EU-approved certification for GDPR compliance.

• BS 10012: A British standard for personal information management systems.

• ISO/IEC 27701: A global privacy management standard that supports GDPR compliance.

Indian businesses should choose a certification scheme that fits their industry and data processing activities.

Indian Legal Context: GDPR and Indian Laws

Although GDPR is a European law, it affects Indian companies when they deal with EU data. Let’s see how it connects with Indian laws

Information Technology (IT) Act, 2000

This act contains some privacy-related sections (like Section 43A and Section 72A) but is not as detailed as GDPR.

Digital Personal Data Protection (DPDP) Act, 2023

India’s new DPDP Act is more modern and similar to GDPR. It includes

• User consent rules

• Rights of individuals over their data

• Rules for cross-border transfers

• Fines for violations

However, GDPR is stricter in areas like

• 72-hour data breach reporting

• Maintaining processing records

• Hiring Data Protection Officers (DPOs)

So, even if Indian companies follow the DPDP Act, they still need to comply separately with GDPR if they handle EU data.

How Indian Companies Can Obtain GDPR Certification

Getting certified takes effort and planning. Here are the main steps Indian companies should follow

Step 1: Internal Assessment

• Identify what personal data is being collected and why.

• Find out if you collect data from EU citizens.

• Check if your company follows GDPR rules, this is called a gap analysis.

Step 2: Fix Compliance Gaps

• Update privacy policies.

• Put in place proper security controls like encryption and access limits.

• Create a process to handle data subject rights (like data access or deletion).

• Set up Data Protection Impact Assessments (DPIA) for high-risk activities.

Step 3: Select a Certification Body

• Choose a recognized certification body approved under GDPR.

• You may work with consultants in India who coordinate with these bodies.

Step 4: External Audit

• The certification body will review your policies, systems and processes.

• They may ask for evidence like: Data flow charts, Staff training records and Vendor contracts

• If all goes well they will issue the certification.

Step 5: Maintain Certification

• Stay up-to-date with changes in law and technology.

• Renew certification every 3 years or earlier if your systems change.

Challenges for Indian Organizations

While GDPR certification is valuable, it comes with challenges for Indian companies

1. No Local Certifiers: India currently has no EU-approved GDPR certification bodies.

2. High Costs: Getting certified and staying GDPR compliant can be expensive, up to ₹15 lakhs or more.

3. Dual Compliance: Following both GDPR and India’s DPDP Act adds complexity.

4. Lack of Training: Many companies don’t have experts who understand GDPR deeply.

5. Continuous Monitoring: Certification requires ongoing effort, not just a one-time setup.

Legal Implications of GDPR Certification

GDPR certification carries legal significance though it doesn't offer complete immunity from enforcement. Instead, it provides a robust compliance posture, supports legal defensibility and is often mandated in data protection contracts with EU-based clients.

Certification Is Not a Free Pass

Even if a company is certified, it can still be penalized for violations. But certification shows that the company made a genuine effort to comply which may reduce penalties.

Contractual Requirement

Many EU companies now ask for GDPR certification in their Data Processing Agreements (DPAs). If you want to work with EU clients this certification may soon become necessary.

Helps in Investigations

If a company faces legal trouble, certification can act as proof of due diligence, showing regulators that you took privacy seriously.

Benefits of GDPR Certification

Here’s how Indian companies benefit from GDPR certification

• Stronger Reputation: Clients feel safer working with certified companies.

• Better Contracts: Helps win deals with European clients.

• Fewer Legal Risks: Shows regulators you’ve followed privacy rules.

• Streamlined Compliance: Makes it easier to meet future laws in India.

• Preparedness: Builds systems that are ready for audits and inspections.

GDPR Certification vs ISO 27701

Indian businesses often compare GDPR certification with ISO 27701, which is a privacy extension of ISO 27001 (used for information security).

Summing Up

For Indian companies that handle EU data, whether directly or through outsourcing work, GDPR certification is more than a badge. It’s a sign of trust, legal awareness and global readiness. It builds credibility, helps in getting new clients and prepares businesses for future data protection laws in India and abroad. Though the process takes time, effort, and investment, the long-term gains, legal safety, client trust and smoother global operations, make it a wise choice for responsible businesses.

Related Posts

• Why Is Data Privacy Important?

• The Role of Data Minimization in Enhancing Privacy 

• Best Practices for Conducting Data Privacy Impact Assessments 

• What Is Pseudonymous Data?

FAQs on GDPR Certification

Q1. Is GDPR certification mandatory for Indian companies?

No, it’s voluntary. But if your company handles personal data of EU citizens, you must comply with GDPR and certification helps prove that.

Q2. Who can issue GDPR certification? 

Only accredited certification bodies approved by EU regulators or national authorities can issue GDPR certification.

Q3. Does GDPR certification protect me from penalties?

Not entirely. It shows you’ve taken compliance seriously which can reduce penalties in case of a data breach.

Q4. What is the cost of GDPR certification in India?

Costs vary based on company size and scope but usually range between ₹5 to ₹15 lakhs, including audits and consultancy.

Q5. How long is GDPR certification valid?

Certification is valid for 3 years, but companies must undergo periodic reviews and maintain ongoing compliance.