Getting started with e-signatures
Electronic signatures are digital versions of your signature that indicate your agreement to the contents of an online contract. They provide a hassle-free way to sign documents remotely, eliminating the need for physical paperwork and enabling more streamlined transactions.
They are legally binding for a variety of purposes and can either be typed, drawn on the screen of an electronic device, or uploaded from your desktop. This modern alternative to wet signatures has been adopted across the world, as it empowers individuals and businesses to sign documents online in a legal, secure, and efficient way.
Beyond paper: E-signatures and the future of German commerce
In Germany, e-signatures are driving a digital transformation, reshaping business processes and boosting efficiency across industries. By enabling smooth, paperless transactions, they help companies streamline workflows, cut down on manual tasks, and speed up contract finalisation.
Aligned with the Online Access Act (OZG), which mandates the digitisation of public services, e-signatures are not just a matter of convenience for German businesses. They are a strategic necessity, enabling businesses to enhance efficiency, improve customer experience, and position themselves for success in a rapidly evolving digital economy.
Zoho Sign, a digital signature solution, is designed to simplify and secure the signing process, offering businesses a seamless transition to a paperless environment. With its user-friendly interface and robust features, it provides organisations with numerous benefits, including:
- Faster turnaround
- Enhanced efficiency
- Strong authentication
- Advanced security
- Remote access
- Seamless user experience
- Budget-friendly solution
E-signatures powering Germany's key industries
Sectors are embracing this game-changing technology in Germany include:
Key legislation governing e-signatures in Germany
Germany follows the EU's eIDAS Regulation (EU Regulation No. 910/2014), which sets the legal foundation for electronic identification and trust services across member states. To further support the adoption of electronic trust services, Germany introduced the Trust Services Act (VDG), ensuring a robust and secure environment for digital transactions.
Understanding electronic signatures under the law
An Electronic Signature refers to data in the digital format that is associated with other data and was used by an individual to sign it. Essentially, it's a digital mark that confirms the signer's intent to approve or accept the content.
An Advanced Electronic Signature provides enhanced security features, making it more robust than a standard Electronic Signature. Under the eIDAS regulation, it must meet specific criteria, including:
- Be uniquely tied to the signer
- Clearly identify the signer
- Be generated using signature creation data that is exclusively controlled by the signer and can be trusted
- Provide a means to detect any alterations made to the signed data
A Qualified Electronic Signature is the most sophisticated form of an advanced signature. It is created using a special, certified signature device and is supported by a qualified certificate, offering the highest level of trust and security.
Essential services for Qualified Electronic Signatures
According to the eIDAS regulation, only a qualified trust service provider is permitted to offer a qualified validation service for Qualified Electronic Signatures. This service must meet strict standards, automatically deliver reliable validation results, and include the provider's own Advanced Electronic Signature or seal.
A qualified trust service provider is the exclusive entity authorised to offer a qualified preservation service for Qualified Electronic Signatures. This service ensures that the signature remains trustworthy even after its initial technological validity period, using specialised methods and technologies to extend its integrity over time.
Legal standing of Electronic Signatures
According to the law, an Electronic Signature cannot be disregarded or invalidated solely because it's in digital format or doesn't meet the requirements of a Qualified Electronic Signature. A Qualified Electronic Signature has the same legal standing as a handwritten signature, meaning it holds full legal value. If a qualified certificate is issued in one EU member state, it must be recognised as valid in all other EU member states, ensuring cross-border legal recognition.
Limitations of Electronic Signatures
There are certain documents and transactions that require a handwritten signature or additional formalities, as specified in German Civil Code (Bürgerliches Gesetzbuch, BGB) and other related laws. These include:
- Wills and testamentary documents
- Marriage and divorce agreements
- Real estate, inheritance, and asset contracts
- Rental contracts exceeding one year
- Employment termination and severance agreements
- Consumer loan agreements
- Partnership agreements and notarial certifications
- Family law documents
Digital signature certificate
A Digital Signature Certificate, as defined in the eIDAS, is an electronic document that links an Electronic Signature to an individual, confirming their identity, typically by including their name or a pseudonym.
A Qualified Certificate for Electronic Signature is a special type of certificate provided by a qualified trust service provider to guarantee the security and authenticity of electronic signatures. It meets specific legal and security standards outlined in the eIDAS regulation and offers a higher level of assurance.
Trust Service Providers
Under the eIDAS regulation, a Trust Service Provider is an an organisation or an individual that delivers trust services, which can be categorised as either qualified or non-qualified. These services help ensure the security and authenticity of digital transactions.
A qualified trust service provider is one that complies with rigorous regulatory requirements and has been authorised by a supervisory authority to deliver qualified trust services. This status ensures that the provider's services are highly trusted and secure.
Recognition of Foreign Digital Certificates
Under the eIDAS regulation, for Qualified Electronic Signatures to be valid across EU borders, their certificates must comply with the same basic standards set by eIDAS. While countries may add extra details, such as unique identifiers, these additions cannot interfere with the signature's ability to be recognised or used in other EU countries. This guarantees that Qualified Electronic Signatures are recognised and accepted without issues across all member states.
Electronic Seal
An Electronic Seal is a digital mark applied to data to confirm its origin and ensure its integrity. It is attached or linked to the data in a way that ensures the data hasn't been altered.
An Advanced Electronic Seal is a more secure version of the electronic seal, meeting specific requirements laid out in the eIDAS regulation. For an electronic seal to be advanced, it must:
- Be uniquely linked to the creator
- Identify the creator
- Be created using secure data that only the creator controls
- Guarantee that any alterations made to the sealed data are identifiable.
A Qualified Electronic Seal is the highest level of electronic seal. It is created using a qualified seal creation device and is based on a qualified certificate for electronic seals, offering the highest security and trust.
Legal effect of electronic seals
Under eIDAS, an electronic seal cannot be dismissed as invalid simply because it is in electronic form or doesn't meet the criteria for a qualified seal. A Qualified Electronic Seal is considered to guarantee both the integrity and authenticity of the data it is linked to. If the seal is issued with a qualified certificate in one EU member state, it must be accepted as valid across all other member states.
For validation and preservation of Qualified Electronic Seals, the same rules that apply to Qualified Electronic Signatures are also applicable. This ensures the long-term security and recognition of electronic seals across borders.
Electronic Timestamp
An Electronic Timestamp is digital data that associates other electronic data with a particular time, serving as evidence that the data existed at that exact moment.
A Qualified Electronic Timestamp is a higher-level timestamp that meets strict security standards outlined in eIDAS Regulation. For a timestamp to be considered qualified, it must:
- Securely link the date and time to the data, making it impossible to alter without detection
- Rely on a precise time source synchronised with Coordinated Universal Time (UTC)
- Itself carry an Advanced Electronic Signature or an Advanced Electronic Seal from a qualified trust service provider, or employ an equivalent method for verification
Legal effect of Electronic Timestamps
Under eIDAS, an Electronic Timestamp cannot be dismissed as invalid simply because it is in electronic form or doesn't meet the criteria for a Qualified Timestamp. A Qualified Electronic Timestamp is presumed to show the accurate date and time while safeguarding the integrity of the associated data. Once issued in one EU member state, it must be recognised as valid across all other member states.
Zoho Sign: Revolutionising business transactions in Germany
Zoho Sign enables German businesses to streamline digital transactions, cutting down on paper and manual processes. Discover how it enhances security, boosts efficiency, and drives growth.
Identification and reliability:
Zoho Sign employs strong authentication techniques, such as OTP authentication and PKI-based digital signatures using digital certificates, to ensure that the e-signature is uniquely identifiable.
Control over the data being signed:
Only the signatory is allowed to review the document before signing and may make changes or reject the document if necessary.
Detectable alterations:
Zoho Sign ensures any alterations to the electronic signature or the document to which the signature is affixed are detectable through an elaborate audit trail of all activities during the signing process. This audit trail comprises critical information, such as the identity of the signatory, the timestamp of the signature, and changes made to the document.
Enhanced security:
Zoho Sign employs robust encryption protocols, such as the military grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure that the data transmission between the signing platform and the data being signed is secure. This prevents documents and data exposure in the case of data breaches.
Audit trails:
Audit trails provide a comprehensive record of every action taken on a document, ensuring full transparency and accountability throughout the signing process. This detailed log enhances security and serves as legal evidence in case of disputes, making it a vital tool for businesses to maintain compliance and trust in their digital transactions.
Document time stamping:
Zoho Sign effectively offers Qualified Electronic Timestamps through its partnership with Uanataca, a QTSP recognised in the EU. This helps validate the authenticity of a digital signature and aids in verifying that the signed document existed in the given form at the time of signing and remains unaltered.
Key takeaway
In today's digital age, German businesses can no longer afford to rely on outdated paper-based processes. E-signatures are the key to unlocking efficiency and streamlining operations. By adopting digital solutions, businesses can accelerate contract execution, foster seamless collaboration with clients and partners, and reduce administrative costs. Zoho Sign offers more than just a way to sign documents; it’s a powerful tool for transforming business practices. With a digital-first approach, Zoho Sign helps German companies simplify workflows, enhance collaboration, and maintain a competitive edge in the global market.
Resources
- Basics of electronic signature
- Commission Implementing Decision (EU) 2015/1506 of 8 September 2015 laying down specifications relating to formats of advanced electronic signatures and advanced seals to be recognised by public sector bodies pursuant to Articles 27(5) and 37(5) of Regulation (EU) No 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market
Disclaimer
The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.