Electronic signature: know what it means and how to do it

Nowadays, companies need to follow the technological advances to modernize their management processes. After all, when acquiring tools that improve the execution of their services, the public starts to have a better perception of them, which is beneficial to make the business grow. For this, it is necessary to adopt solutions such as electronic signature of documents.

Despite being a growing format in the market, many people still have doubts about its concept, how it works and if it has legal validity in the country. To remedy these points once and for all, we have decided to produce this complete guide on the subject and we invite you to read it to the end. Shall we go ahead?

What is electronic signature?

Electronic signature is a legal and efficient way to obtain approval or consent from someone through recognition via electronic means with legal validity. In many cases, it operates – in a secure and verifiable way – as a substitute for the signature of your own hand, mainly for documents and contracts.

Therefore, all the processes involved in manually signing a document, which include going to notary offices or sending the papers by mail for the parties to sign, can be simplified with the purchase of an electronic signature. 

The same goes for other forms of recognition. For example: when you go to the bank and need to insert your finger into the ATM to do the biometric recognition, this is a type of electronic signature. The same is true when you access a service on the internet and use a token to recognize your identification as well as perform a login using a personal password.

Thus, although in analogical times the most common form of personal recognition was the signature (which, in some cases, needs to be authenticated at a notary's office), this range is much more varied nowadays, which even facilitates the hiring of employees, suppliers and customers.

In times of work done in home office, this is very beneficial, as it means that people do not need to be in your office to sign the documents that prove the new partnership or contract. They can be anywhere to sign them as long as they have access to the necessary tools.

What are the three types of electronic signature

According to law number 14.063 of the Brazilian legislation, there are three types of electronic signature which we have listed below: simple, advanced and qualified.

simple electronic signature

This type allows the document signer to be identified, in addition to attaching or associating data in electronic format.

For example: when a person needs to approve their entry somewhere in front of a facial recognition device, the system associates the data entered (in this case, the person's face) with those that exist previously registered to allow access.

Advanced electronic signature

This makes use of certificates not issued by the ICP-Brazil or other means that prove the authorship and integrity of documents in electronic format.

A very common example is the signatures of online documents whose platforms have evidence that it was really the person designated as a party who signed them.

Qualified electronic signature

Refers to those who use digital certificate issued by ICP-Brasil, that is, the Brazilian Public Key Infrastructure system. This body was created by Provisional Measure 2.200-2 of 2001, made official by Decree 3.996 of 2001 and Law 11.419 of 2006.

The structure of ICP-Brasil relies on certifying authorities that, using a cryptographic system based on digital certificates, ensure the identity and authenticity of a user who uses an electronic means to perform actions such as signing an online document.

How are documents sent for an electronic signature?

Some people have trouble imagining how an electronic signature works. After all, when we sign a paper document, we take the pen, write our signature in our own hand and that's it. 

But how can this be done in digital media? Was it in a text editor? Perhaps through a program that allows you to make the handwritten signature with the mouse or on the screen of the cell? Actually, it's simpler than that.

The electronic signature takes place from a dedicated platform to this type of service. In it, you can register and invite people who need to sign a document to do the same. In this way, with the simple click of a button, it is signed and has the same legal validity of those that are signed in a traditional way (as we will explain later in this article).

What types of documents can be signed?

Practically every document you sign in paper form can be entered electronically. You just need to have it in .doc or PDF format to upload it to the platform. 

Therefore, there are several types of documents that can be signed in this way, we highlight the most common ones here.

customer acquisition

Companies that provide services and need customers to sign the contract that clarifies the duties and obligations of the contractor and contractor see electronic signature as a great advantage.

After all, when closing a deal, you don't have to wait long to formalize it. The contract can even be sent by WhatsApp, Telegram, SMS or any other messaging application, so that the customer can sign it right away.

Contracting suppliers

You can't do it all alone, so many business owners and managers rely on suppliers who can perform the services needed for the company's offerings.

As much as some contracts are made by email and even verbally, the electronic signature reinforces the commitments of this partnership. Therefore, when signing an online contract, both you and the person or firm that will provide the service are assured that everything must be done as agreed.

Hiring employees

Gone are the days when employees had to go to a accounting to sign admission documents. Now all this can be done online.

When hiring a new member for your company, write the document regarding your hiring, launch it on the electronic signature platform and send the link for him to sign.

This makes the process more practical and faster, especially if the new employee resides in another state or country.

Contract renewal and amendments

It is common for some rules to change over time, which requires contract renewals or amendments so that your customers, employees or suppliers are aware of the new contractual rules.

Thus, an amendment or renewal can be made in the form of a document to be signed through the platform. Even if it is a contract originally made on paper, nothing prevents this new one from being done electronically.

Contract termination

As much as we avoid it, at some point we need to terminate the contract made with someone. While some people consider communication to be a sufficient form of termination, it is important to have a signed document that proves this.

As with the other procedures, you can launch the document on the platform and ask the person with whom you are breaking contractual ties to sign it so that everything is recorded.

How to adopt a subscription platform for your company?

To successfully adopt an electronic signature, it is important to consider some essential aspects.

Knowledge of available plans

Start by evaluating the different plans offered by the platforms. Generally, free options are restricted and may not meet business demands. Look for plans that align with your company's document volume and offer the necessary features.

Understanding the company's needs

Each business has specific requirements. It is essential to understand the volume and nature of the documents that will be handled. This will help you choose a platform that can efficiently handle your particular needs.

Platform security

Safety is paramount. The chosen platform must support both electronic and digital signatures, and incorporate compliance and anti-fraud features. Ensuring the integrity of signed documents is vital.

Solution intuitiveness

Ease of use is a critical factor. An intuitive platform makes it easier for employees to join and speeds up the signing process, whether via cell phone or notebook.

Features and support

Analyze the range of features offered, such as calendar, personalized notifications and email personalization. Additionally, check whether the platform offers efficient remote support to resolve any technical issues.

Integration with other tools

The ability to integrate the platform with other business tools through open APIs or at no additional cost is a major differentiator. This allows for a more fluid and integrated operation within the company's IT ecosystem.

How an electronic signature is made: step by step

The procedure for an electronic signature is very simple, so here we show you the steps you should follow. Let's take the platform steps as a basis ZapSign.

Step 1: Upload the document to the platform

First, convert the digital document to PDF format. If you have the document on Google Drive, just go to “File / Download / PDF Document”. If you have it in .doc format on your computer, you can use PDF converters like this.

Then, within the platform dashboard, click on “+NEW” to submit a new document. 

On the next screen, upload the document saved on your computer by clicking on “select document”. 

Step 2: Determine who will sign the document

After entering the full name of the other people who will have to sign, click on “continue”, unless you want to use the advanced authentication feature.

By clicking on the button of the same name, the screen above will be displayed which, in addition to the name and email, also requires an authentication method (email, SMS, signature + email, signature + SMS), telephone number , the role of the signer (witness, sign to approve or to acknowledge receipt). It is also possible to require a selfie and identity document.

On the next screen shown above, you can position in which part of the document the signature should be inserted. This is attractive to those who are used to signing physical documents, as they will be able to see the signature inserted in the same place as when we signed them by hand. If you don't feel the need for it, just continue without positioning.

Step 3: Send the signing link to the parties involved

Once this is done, ZapSign will generate a link that you can send to the people who will have to sign the document. There is also the option to email the link by clicking on “I want ZapSign to send signature links to signers” which will display the email input field and a custom message as an optional field.

When the people assigned to the subscription receive the link and click on it, they see the following screen.

After clicking on “subscribe”, the platform asks them to enter their full name, email and phone number. By doing so, they come to agree with the privacy policy and ready! Electronic signature is successfully completed in simple steps!

⚠️ Also check out these related articles ????

➡️ How does the legal validity of the electronic signature work?
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➡️ Online document signing: your business differentiator in 2022

What is the difference between digital and electronic signature?

Having read our content so far, the understanding of what an electronic signature is is certainly clear, but a doubt often lingers in the minds of many: are digital signatures and electronic signatures the same thing? Well, the answer is no.

Although they are similar terms and both even have characteristics in common, there are also differences that we point out here.

What is digital signature?

A digital signature it is a type of electronic signature. As we explained throughout the post, the electronic signature can be used in several types of validation of someone's identity, which includes the signature of documents. 

In the digital signature, the people who sign them make use of a digital certificate that proves their authorship. 

So, what differentiates the digital signature from the electronic one?

The electronic signature brings together several ways to sign a document or validate the identification of a person. In other words, it is not restricted to only signing files, but also proving that the person who identifies themselves through an electronic medium is really her.

On the other hand, the digital signature, being a type of electronic signature, works this validity from a cryptography made with a digital certificate.

This means that you need to issue it with the ICP to be able to use a digital signature. This issuance process takes a few business days and requires two steps:

• make the payment of fees relating to such registration;
• follow the steps given by the institution where you register to complete it.

By doing this, you will be able to use your digital signature on electronic documents in an authenticated manner.

What are the advantages of electronic signature?

Here we separate the six main benefits that you will have by adopting the electronic signature in its management.

Cost reduction

Working with physical documents is a practice that many traditional companies still maintain, but they do not realize that this involves a series of costs that could be avoided with the adoption of electronic signatures.

For starters, physical documents must be printed, which involves investing in paper and printer toner. If you issue many contracts per month, this number is certainly very representative of your billing.

We also need to consider the logistics involved in signing these documents. If the signatories cannot go to your office or live in another city or country, it is necessary to use the service of a carrier or the Post Office to take the paper to the person for him to sign and bring it back to you.

These processes do not exist in the electronic signature, making it more advantageous in a financial sense.

administrative organization

When you start to have many documents printed in the management of your company (contracts, amendments, among other types of files), you need a place to keep them, right? In some cases, a closet is enough, in others you need to reserve an office room to store everything.

This leads us to the following question: when you need to find a document among so many papers, how do you do it? As much as you organize them all by category or drawer, this will take up some of your time.

In electronic signature, you have a better organization since All documents are sorted on the electronic platform, just do a search to find the one you need.

Celerity

The advancement of technology and communication in recent years has made us all get used to faster and faster processes, which include everything from the speed of the internet to the online service provided by companies. So why would subscriptions be any different?

When a negotiation is concluded, the next step is the signing of the contract, which, if done in a traditional way, becomes very time-consuming, and it can take days for the signatures to be physically collected.

On the other hand, in the electronic subscription, this can be done at the same time, which allows another benefit: the increase in the number of contracts per month.

Rugged

Even if you have an office where the central point of your work activities is, you don't stay there all the time, do you? There are times when you need to resolve external matters or travel on business, which previously made it impossible for you to perform face-to-face actions such as signing documents.

However, times have changed, with the electronic signature you can do it anywhere. ZapSign, for example, has a responsive format so you can use the tool on your smartphone and sign documents no matter where you are. 

Security

Have you ever been afraid to buy a product or hire a company's service because you don't have a known brand or well-defined hiring steps? This is common and can happen to all types of audiences, including yours.

Therefore, if you make an agreement via email exchange or merely verbally, without a contract, this gives an impression of little security, making the person disdain to go ahead because they are not sure that they are in contact with a serious company.

On the other hand, by citing the electronic contract, you make your audience feel safer. After all, the signature allows all parties to be legally protected (as we will talk about later) and to be sure that all the points raised in the document will be honored during the term of the contract.

Less bureaucracy

Signing a physical document is very bureaucratic, especially when it requires a notarized signature. This process is carried out with the aim of guaranteeing the authorship of the signature made by a person who receives a reinforcement of public faith, since the notary can affirm, in fact, that the firm belongs to the person constituted as a signatory.

Thus, the contractual process ends up being very laborious for the parties, which contributes to some people leaving the contract aside in order not to have to go through all these steps that can delay the beginning of the agreed work.

However, as said, the right way is not to stop signing the document, but to do it in a more practical way, as proposed by the electronic signature that simplifies all this at the simple click of a button.

Electronic signature for companies: how it works in different market segments

As we could see, companies and entrepreneurs of the most diverse sizes and segments are increasingly adhering to the practice of electronic signature of documents. 

Next, we will talk a little about how this procedure works in different fields of activity, facilitating processes and reinforcing competitiveness in the market.

furniture sector

The last few years have been marked by several transformations. Technological development and the pandemic scenario were decisive for the rise of e-commerce and for the demand for an increasingly differentiated service.

These changes are here to stay – even with the recent resumption of face-to-face activities, certain consumption habits have already been internalized by society. After all, the remote relationships that had arisen out of unfortunate necessity have now turned out to be rather convenient.

Hence the importance of investing in new technologies, which naturally extends to the furniture sector. In this sense, the electronic signature is of great value to speed up the service process, facilitate transactions and reduce costs – all of this ensuring data security and legal validity.

health sector

According to this new reality that emerges in the most diverse administrative scenarios, the Federal Council of Medicine (CFM) has recently started to act as a certifying entity within the due standards of the ICP-Brazil, providing digital certification with a CRM code for all physicians registered with the Regional Councils of Medicine.

This initiative represents a great step towards reducing the bureaucracy of the health system, since the online subscription facilitates the development and implementation of electronic medical records in hospitals, clinics, dental offices and health establishments in general.

real estate sector

The use of electronic signature fits like a glove for the real estate market, since the contractual flow becomes much more agile and dynamic.

In fact, due to the huge flow of document processes peculiar to the real estate sector, here, the implementation of this subscription type becomes particularly important. 

Landlords, tenants, guarantors and brokers no longer need to travel to and fro or send papers through the mail to legally enable the lease or purchase/sale of real estate contracts, as well as additive and other relevant documents.

The electronic signature, therefore, represents decisive positive effects in terms of productivity, agility in the processes and reduction of operational costs for all parties involved.

Financial sector

With the advent of digital banks, the financial sector is constantly adhering to remote solutions. 

By adhering to the electronic signature feature, financial institutions provide customers and partners with the possibility of carrying out their transactions and closing their business via the Internet.

In this way, numerous advantages are obtained, especially with regard to optimizing the opening, closing and handling of bank accounts and in contracting loans and other services, such as capitalization bonds, pension programs and consortia.

Not to mention the reduction in waiting time in queues for activities that really need to take place in person.

education sector

With the increasing number of students enrolled in the most diverse public and private education institutions, in addition to the exponential growth of EAD (Distance Learning), the electronic signature is affirmed as an indispensable resource for the sector.

Even in educational institutions that only offer face-to-face classes, the tool has proved useful in the validation of the most different academic documents.

Digital certificates prove to be indispensable for issuing enrollment certificates, school transcripts, class diaries, reports and many other important documents – thus reducing the volume of paper, facilitating the work of secretaries and saving students from facing endless queues. .

telecommunications sector

Being considered one of the most competitive sectors of the market, the telecommunications sector naturally generates a strong demand with regard to the adoption of innovative solutions.

After all, it is a service- and technology-driven sector. The electronic signature, therefore, by enabling deals to be closed in a matter of minutes, represents an essential element for the company to achieve its best results and stand out in front of the competition.

insurance sector

Nowadays, it is simply unacceptable for an insurance company not to have the electronic signature as a consolidated element in its work routine. 

The feature is essential to save administrative and operational costs, in addition to simplifying the flow of sales processes, allowing the volume of closed deals to be expanded, without the team being unnecessarily overloaded.

In a sector that basically deals with constant contracts, it is extremely important that the processes take place in the most automated way possible, so that the hiring processes can be carried out simply and quickly, prioritizing productivity and maximizing sales. . In this sense, digital processes are of great aggregating value.

SaaS industry

SaaS is the acronym for Software as a Service, or Software as a Service. Companies like Salesforce, Netflix, Spotify and their own market digital signature platforms are some examples of this modality of commercialization and distribution of software – a business trend that is increasingly present nowadays.

The model covers a wide range of segments, from streaming to online classes. The fact is that, due to its essentially digital character, it becomes not only impossible, but inconceivable, to think of physical solutions for your commercial and contractual relationships. Therefore, it is a business model totally focused on customer convenience, innovative practices and dynamic processes.

For a SaaS company to offer its services digitally, it is a prerequisite that internal processes also occur digitally, since the transformation of paradigms must start at the root. 

After all, it doesn't make any sense to offer a fully digital service to the customer if, to get it, he has to go somewhere else to sign a bunch of papers.

For this type of business, the electronic signature represents, first of all, a sign of credibility and security, in addition to effective cuts in bureaucracy, delays and unnecessary expenses.

human resources sector

Technological development has always been a decisive factor for the HR sector. Therefore, the electronic document management, and, consequently, the electronic signature is an indispensable practice for the routine of any Human Resources department nowadays.

One of the sectors that most needs to deal with huge flows of documents cannot afford to be stuck in the past and buried in paper. Executing its processes through digital means, the security and integrity of documents is guaranteed, in addition to cutting costs with physical material and reducing, not to say eliminating, the risks of loss.

Not to mention the improvement in the productivity of the team working in the company's HR, since the entire process of preparing, signing, consulting, issuing and storing documents becomes more fluid and effective.

accounting sector

The profession of accountants requires extreme responsibility – after all, it is up to them to manage the client's financial assets. For this reason, communication between both must be constant, and, in this regard, operational efficiency is essential.

To this end, digital solutions are very important, since, through them, this contact can be easily maintained, even if at a distance. 

The electronic signature feature reinforces this point, allowing digital contracts to be concluded much faster and more practically than those made in a traditional way, and maintaining security and legal validity.

agribusiness sector

Not even the agribusiness sector has escaped the advent of electronic signatures – which shows that what, before, was presented as a trend, can now be considered an inexorable reality.

The branch's businesses have been undergoing major affirmative transformations, since the possibility of closing deals through mobile devices, such as cell phones and tablets, represents an important solution for a sector that operates mainly in rural areas, where, in addition to the difficulty of access be a constant, the lack of infrastructure in computers is also common.

legal sector

The main benefit of the electronic signature within a legal context is the possibility for the lawyer to be able to proceed with the contractual processes without the need for the client to be present at all times during a given action.

In this way, the management of contracts and the entire procedural flow takes place in a much more fluid and objective way, even avoiding the occurrence of fraud, since digital certificates have encrypted protection.

clothing sector

Clothing was one of the main areas affected by the arrival of the pandemic. The need to adapt to social distancing has promoted strong transformations in the sector, especially in large companies, accustomed to dealing with a vast number of contracts and suppliers.

Among companies in this sector that have applied digital signatures in their administrative routines, it is estimated that the contractual process has become two to six times faster than before. 

In this way, the practice has been gradually implemented in the most diverse internal departments of these companies, resulting in faster and less costly processes.

Another significant advantage is due to the fact that tracking the document's trajectory, identifying the recipients and carrying out any changes before the end of the contractual process become much more practical, secure and intuitive.

How is the legal validity of the electronic signature?

Some people think that contracts only have legal validity when the signature is made by all the signatories, in their own hand, which makes them question whether the electronic signature is valid. The answer is yes and we will explain why.

Brazilian law says, in articles 104 e 107 of the Civil Code, that any type of contract is valid as long as it is complete and authentic, that is, that it does not present changes made after the parties have entered into an agreement.

This means that even verbal contracts are valid. So if you've ever arranged a job or condition with someone in front of a witness, that's a contract and it has validity. Thus, with electronic documents it could not be different.

What does the law say about the legal validity of electronic signatures?

Provisional Measure 2.200-2/2001, mentioned above, provides the legal guarantee of electronic signatures, as it enables the use of any means that prove the authorship and integrity of electronic documents, regardless of whether they have a digital certificate.

When using a platform like ZapSign, you need to enter your personal data before proceeding with the signature, and there is no possibility to modify the document after it is signed, which makes the signature valid.

Furthermore, we have in national jurisprudence the APC appeal 20140111450486 of the 5th Civil Class of the Court of Justice of the Federal District and Territories. It affirms the irrelevance of the written contract in order to prove a link, which reinforces the validity of the electronic signature and demystifies the thought that only physical documents are valid under the law.

How does ZapSign's electronic signature work?

ZapSign is a platform that collects signatures in a simple way and that can be used on both desktop and mobile. In addition, it has integration with the main messaging applications on the market.

So if you're used to talking to customers and suppliers through WhatsApp, Telegram, email or SMS, for example, can send the link through these channels so that signers can sign the document with their finger.

How to hire ZapSign

The platform has three main hiring plans. The first is the professional one, it allows you to sign up to 20 documents per month, in addition to inviting 5 more users to participate. If your team is larger, the most appropriate is the complete plan so that you can add 10 users and issue unlimited documents.

If you prefer to try out the platform first to see how it fits your management, that is also possible. The essential plan has zero cost and includes the subscription of up to 5 monthly documents.

Finally, now that you know what an electronic signature is, if you want to know in a personalized way how it can be applied to your company, feel free to contact us! Just click here and fill in the form to get in touch with one of our experts.