What are the laws and regulations for e-signatures?

E-signatures have transformed how businesses and individuals handle contracts. They allow people to sign documents electronically instead of using paper and pen. Understanding the laws and standards that govern e-signatures is essential for ensuring agreements are legally binding worldwide.

These laws vary by country and region. Knowing the rules helps businesses choose the right type of signature and maintain compliance. This article explains key legal frameworks in the United States, the European Union, and other regions. It also covers standards, best practices, and practical considerations for using e-signatures safely and effectively.

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E-signature laws in the United States

The United States has a well-established legal framework for electronic signatures. E-signatures are legally recognized and enforceable at both the federal and state level. Two main laws govern e-signatures in the U.S.: the ESIGN Act and the Uniform Electronic Transactions Act (UETA).

ESIGN Act

The Electronic Signatures in Global and National Commerce Act (ESIGN Act) establishes that contracts and signatures cannot be denied legal effect solely because they are electronic. It applies to most business and consumer transactions across the country.

• Signers must intend to sign electronically.
• Parties must consent to use electronic records and signatures.
• Electronic records must be accurate, accessible, and retained reliably.

UETA (Uniform Electronic Transactions Act)

The UETA is a model law adopted by most U.S. states. It complements ESIGN by providing state-level rules for electronic transactions.

• Electronic signatures are valid if the signer intends to sign.
• Records in electronic form satisfy legal writing requirements.
• The law supports the use of secure methods to verify identity.

E‑signature standards in the European Union

Electronic signatures in the European Union are governed by [Regulation (EU) No 910/2014 on electronic identification and trust services (eIDAS). This regulation creates a common legal framework that applies in all EU Member States for electronic signatures, electronic identification, time‑stamps and trust services. eIDAS makes sure that e‑signatures are legally recognised and enforceable across the EU. 

Types of electronic signatures under eIDAS

The eIDAS framework defines three levels of electronic signatures. Each type offers a different level of assurance and legal certainty.

Simple electronic signature

A simple electronic signature is any electronic data attached to or associated with a document that shows the signer’s intent to sign. It covers common forms of e‑signature used for routine business, such as typed names and basic digital signatures. Simple signatures are legally recognised, but they do not guarantee identity or document integrity by themselves. 

Advanced electronic signature (AdES)

An advanced electronic signature must satisfy specific requirements under eIDAS. These include:

• Being uniquely linked to the signatory.
  Allowing the signatory to be identified.
• Being created using signature creation data that the signatory controls.
  Being linked to the signed data in a way that detects changes.
  

This type of signature provides stronger assurances about the signer’s identity and the integrity of the document. 

Qualified electronic signature (QES)

A qualified electronic signature is an advanced electronic signature with additional strict requirements. It must be:

• Created using a qualified electronic signature creation device.
• Based on a qualified certificate for electronic signatures issued by a certified trust service provider.
  

Under eIDAS, a qualified electronic signature has the same legal effect as a handwritten signature across the entire EU.

Legal effect and cross‑border recognition

eIDAS establishes that electronic signatures cannot be denied legal effect solely because they are in electronic form. It also states that qualified electronic signatures must be recognised in all EU Member States and have the same legal weight as written signatures. This helps businesses operate across borders within the EU without needing separate agreements for each country. 

Practical application of eIDAS standards

eIDAS also influences how trust service providers (TSPs) operate. National authorities designate and supervise Qualified Trust Service Providers (QTSPs) that issue qualified certificates. These providers must be listed on each Member State’s official trusted list, which shows certificates that meet eIDAS requirements. Qualified signatures based on qualified certificates on these lists are accepted throughout the EU. 

E-signature laws in Asia and other regions

Laws governing electronic signatures vary widely across Asia and other regions, reflecting different legal traditions and technological adoption rates. Businesses that operate internationally must understand these differences to remain compliant. Some countries have fully established frameworks, while others rely on general digital transaction laws.

Japan

Japan recognizes e-signatures as legally valid under the Act on Electronic Signatures and Certification Business. Electronic signatures, including traditional hanko stamps used digitally, are legally enforceable if they meet certain standards:

• The signature must be uniquely linked to the signer.
• It must be created and maintained under the signer’s control.
• Records must reliably indicate whether the document has been altered.

China

China’s Electronic Signature Law provides legal recognition of electronic signatures if they can verify the signer’s identity and ensure document integrity. It distinguishes between standard and secure electronic signatures, where secure signatures are created using cryptographic methods.

Singapore

Singapore enforces electronic signature validity through the Electronic Transactions Act (ETA). Electronic signatures are legally binding if they reliably identify the signer and indicate approval of the information in the electronic record.

General best practices for international compliance

Here are some best practices you should follow when using e-signatures to remain compliant: 

• Confirm that local law recognises electronic signatures for the intended contract type.
• Maintain secure and verifiable audit trails.
• Use approved or recognised signature technologies where required.
• Ensure consent for electronic transactions is obtained.
• Retain records in accessible and durable formats.
• Verify signer identity when required by local law.

Common standards and best practices

While laws differ by country, certain principles and technological standards apply globally to ensure e-signatures are valid and secure. Businesses that follow these best practices reduce legal risk and improve operational efficiency.

Key principles for validity

Electronic signatures are generally considered legally binding when they meet the following criteria:

• The signer intends to sign the document.
• The signature is linked uniquely to the signer.
• The signature process ensures the document cannot be altered undetectably.
• Consent to conduct the transaction electronically is obtained.
• Records of the signature and transaction are securely stored and accessible.

Technology and compliance

Modern e-signature platforms implement technology to support legal validity and meet global standards. These tools ensure that electronic signatures are secure, verifiable, and auditable. Key features include:

• Digital certificates verify the identity of the signer.
• Encryption protects the document from unauthorized changes.
• Timestamps record the exact time a document is signed.
• Audit trails log every action taken on the document.
• Multi-factor authentication provides extra security for sensitive transactions.

Benefits of following standards

Adhering to e-signature standards and best practices offers significant advantages for businesses. Following these standards ensures that digital agreements are legally sound, secure, and efficient, while also supporting cross-border operations. Companies that implement these practices can reduce risk and improve trust with clients and partners.

1. Following e-signature standards ensures that agreements are enforceable in legal and regulatory contexts.
2. Implementing proper technology reduces the risk of fraud and unauthorized alterations.
3. Compliance with international standards supports cross-border business transactions.
4. Using secure and standardized processes streamlines contract management and approval workflows.
5. Maintaining high standards builds trust with clients, partners, and regulatory authorities.
   

Practical considerations for businesses

Implementing e-signatures successfully requires careful planning and consideration of both legal requirements and operational needs. Businesses must select the appropriate signature types, integrate them with existing systems, and follow procedures that ensure compliance across different regions.

Choosing the right type of signature

Different contracts and transactions require different levels of assurance. Selecting the proper type of electronic signature helps ensure that agreements are legally valid and appropriate for their context.

• Businesses should use simple electronic signatures for low-risk or internal agreements that do not require extensive verification.
• Companies should use advanced electronic signatures when identity verification and document integrity are critical to the agreement.
• Organizations should use qualified electronic signatures for contracts that require the highest level of legal certainty, such as international or regulated transactions.
  

Integrating e-signature solutions with contract management systems

Integrating e-signatures into contract management systems streamlines workflows and improves compliance. Modern platforms can provide centralized storage, automation, and security to support business operations.

• Businesses should centralize all signed documents in a secure repository to ensure easy access and auditability.
• Companies should set up automated reminders for contract renewals, expirations, and required actions to prevent missed deadlines.
• Organizations should use AI-assisted tools to extract key contract information such as start dates, amounts, and counterparties automatically.
• Businesses should maintain secure audit trails and version tracking for all contracts to demonstrate compliance.
• Companies should select platforms that support multiple signature types, including hand-drawn, typed, digital, and in-person signatures, to accommodate diverse business needs.
  

Tips for businesses adopting e-signatures globally

Adopting e-signatures in international operations requires careful attention to local laws and practices. Following best practices reduces risk and ensures legal enforceability across borders.

• Businesses should verify local laws and regulations before sending contracts to parties in other countries.
• Companies should maintain electronic records in standardized, durable formats that are easily accessible.
• Organizations should implement multi-factor authentication or other secure identification methods when required by local law.
• Businesses should train employees on proper compliance procedures to ensure consistent and lawful use of e-signatures.
• Companies should select e-signature platforms capable of handling multiple signature types and workflows to meet the needs of global operations.

SignTime supports legal compliance worldwide

SignTime helps businesses comply with international e-signature laws and regulations while simplifying contract management. The platform supports multiple signature types, including hand-drawn, typed, digital, and in-person signatures, allowing companies to meet diverse legal requirements.

Its AI tools automatically track key contract details, set reminders, and flag auto-renewals, helping organizations maintain compliance and stay on top of obligations. With secure, verifiable, and legally recognized e-signatures, SignTime ensures contracts are enforceable across borders while streamlining workflow.

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