Every 30 seconds, 1.2 million dollars is generated online. The internet forever changed the way that the world does business, and it opened doors for countless companies to work internationally in a way that was simply not practical before. But with all the new possibilities available to companies, new laws are still being created that govern the way business is handled online. One example is the Electronic Signature Law that was enacted in China just 10 years ago.
The China eSignature law makes any electronic signature legally binding, with only a few exceptions.
As with most legal reading, the law is long-winded, confusing, and dry, but the important things to note are:
- It defines an electronic signature as “data in an electronic form that can be used to identify the signatory to an electronic transcript and to demonstrate the signatory’s approval of the information contained therein.
- Both parties (the signatory and the dispatcher) must approve the use of an electronic signature for it to be valid.
- The signature is only valid if the original document can be readily produced for reference at any time in its original form.
- Marriage, adoption, inheritance, real estate, and a certain number of other transactions may not be electronically signed.
The signature can be certified only by a legally established Electronic Certification Service (ECS) Provider.
What Is an ECS Provider?
Possibly the most important part of the law pertains to the need for an ECS provider to certify the signature. If an ECS provider does not certify the signature, it isn’t valid. This system is in place to confirm the signatory’s identity and ensure that they are who they say they are. This prevents someone from signing a document for a company they aren’t even part of. The process of certifying the signature is virtually instantaneous, so using an eSignature is still incredibly convenient. For an ECS Provider to become legally certified, they simply have to apply and prove they have the necessary personnel, equipment, and space to run such a service.
What the Electronic Signature Law Did for China
When the law was enacted, it became very easy for e-commerce and online transactions to take place in China. This promoted the growth of online business both domestically and internationally because it made it quick and easy for documents and contracts to be securely signed and certified remotely. It also created new business opportunities for individuals or companies that wanted to become an ECS provider to help regulate the China eSignature laws, and also for companies that wanted to create and innovate the technology that makes eSignatures possible in the first place.
Creating an eSignature Policy for Your Business
Whether you’re in China or anywhere else in the world where electronic signatures are legally binding, your company can benefit by making it possible for your employees, clients, and business partners to use an eSignature to sign any important documents. It is a cost-effective way of doing business because it reduces the need for ink, paper, and postage materials, and it’s incredibly convenient because it lets you get a signature immediately, no matter how far away the signatory is.
When switching to a more eSignature-focused document management practice, though, you need the right technology in place to ensure that you’re getting the signature you need in an effective, legally binding way.
Use Revver for Your eSignature and Document Management Needs
Document management is an important part of running any business, especially in the digital age. When you have contracts and invoices and internal memos flying around cyberspace all day, you have to have a good way to keep everything organized. eSignatures make this easier by reducing the need for a larger physical filing system, but they also make it all the more vital to have a good digital document management system set up as well.
Using a third-party service to do this is an excellent solution because it takes all the technical aspects of the process out of the equation and leaves you with a virtual filing cabinet that’s easy to use when you want to sort, store, transfer, or edit documents at any time from anywhere. If you want to make the most of your document management service, you’ll find one that has eSignature support already integrated into the platform.
You get eSignature support and more when you use Revver. We are a leading name in digital document security thanks to our innovative virtual filing system that offers many tools to streamline your document work, including our native eSignature. If you’re ready to take your business to the next level, discover Revver today.
