What is Digital signature?

Most business contracts can be validly signed with an electronic signature. The law does not require a specific form for the majority of agreements: a contract is valid once there is mutual consent, regardless of how the signature looks. Only specific legal acts such as incorporating a company or transferring real estate require a notarial deed or qualified signature.

The eIDAS Regulation, which applies across the EU, distinguishes three levels. The first is the simple electronic signature. This can be as basic as a typed name at the bottom of an email or a tick box in a web form. Legally valid, but difficult to prove if the other party denies signing.

The second level is the advanced electronic signature. This is uniquely linked to the signer, can detect changes to the document after signing and is created using means that only the signer controls. Platforms such as DocuSign and Adobe Sign provide this level by default.

The third level is the qualified electronic signature, created with a qualified certificate and a secure device. This level has the same legal status as a handwritten signature and is the only level that a court cannot refuse as evidence.

For most SME contracts, an advanced electronic signature is more than adequate. It saves time, eliminates the risk of lost documents and allows contracts to be signed without being physically present.

Manual signing is one of the biggest delays in the contract process. Documents get printed, sent by post, lost on a desk or signed by someone who lacks authority. According to research by Ironclad (2025), 92 per cent of all contract management errors trace back to human mistakes, and the signing process is a major source.

A digital signature reduces turnaround from days or weeks to minutes. It also automatically records who signed when, strengthening your evidence if a dispute arises later.