eSignature Legality
in Taiwan
Taiwan has legitimized electronic signatures by enacting The Electronic Signatures Act in 2001. This Act was enacted to encourage the utilization of electronic transactions, ensure the security of electronic transactions, and facilitate the development of electronic government and electronic commerce in Taiwan.
Key Conditions
Electronic signatures in Taiwan are defined as “data attached to and related to an electronic record, and executed to identify and verify the identity or qualification of the signatory of the electronic record and authenticating the electronic record.” Electronic signatures are valid so long as both parties comply with the use of this manner of the signature on a contract or transaction. The following requirements must be met for an electronic signature to be legitimate:
- 1 Signed document shall not be altered or tampered without signatory’s consent,
- 1 Signed document must be accessible by both parties, and
- 1 Administrative regulation does not prohibit the use of Electronic signatures.
In some stances when digital signatures are required, they need to meet these parameters under Article 10 of the Electronic Signatures Act:
1 it shall be supported by a certificate issued by a certification service provider whose certification practice statement is approved in accordance with Article 11 or which is permitted in accordance with Article 15; and 1 the certificate is valid and is not used contrary to its limitation of use.
The list of government authorized certification service providers:https://gcis.nat.gov.tw/mainNew/subclassNAction.do?method=getFile&pk=690
Use cases of electronic signature in Taiwan
- Employment contracts;
- Commercial agreements between corporate entities;
- NDAs;
- Procurement documents;
- Sales agreements;
- Consumer agreements;
- Lease agreements;
- Purchase and sales contracts;
- Software license agreements;
- Copyright, patent, and trademark licenses; and
- Transfers of intangible property.
The COVID-19 pandemic has radically changed our lifestyles and how one conducts business. Most non-essential companies have established completely remote work setups. This “new normal” has concentrated more attention on electronic means of transactions. The “new normal” in the age of Covid-19 proceeds to facilitate the use of eSignatures.
Documents that cannot be e-signed in Taiwan:
- Documents requiring notarization
- Power of Attorney
- Few banking, insurance, and financial documents
- Real estate transfers
DISCLAIMER
Certinal is making available the information and materials in this article for informational purposes only and is meant to help companies understand eSignature’s application in a legal framework. Laws change rapidly and Certinal makes every reasonable effort to keep the content of this article current, hence Certinal makes no claims or representations that the information contained in this article is true, accurate, correct, or current. The law is different from jurisdiction to jurisdiction, and even similar laws may be interpreted differently in different courts or different places. Since these factors differ according to individuals and businesses, Certinal is not liable for any consequence of any action taken by any third party relying on material/ information provided under this article. The contents hereof should not be construed as legal advice in any manner whatsoever. In cases you require any assistance; you must seek independent legal advice.
