eSignature Legality Guide
eSignature Legality in Finland
Finland, as a member of the European Union, has recognized the legal validity of electronic signatures since 2009, following the implementation of The Act on Strong Electronic Identification and Electronic Signatures, which was introduced after the adoption of the EU Directive in 1999.
E-Signature Legality Summary
According to Finnish law, a handwritten signature is not always necessary for a contract to be valid. Contracts are generally enforceable if the parties are legally competent and reach an agreement, whether that agreement is made verbally, electronically, or in writing (Contracts Act Chapter 1 Section 1). The EU Regulation No. 910/2014 of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market (the “eIDAS Regulation”) states that electronic signatures cannot be denied legal effect or admissibility as evidence in legal proceedings solely because they are in electronic form. Furthermore, a qualified electronic signature (QES) is given the same legal status as a handwritten signature. In some cases, parties may need to provide evidence in court to prove a valid contract. Leading digital transaction management solutions can generate electronic records that are admissible as evidence under Chapter 17 Section 2 of the Code of Judicial Procedure, supporting the existence, authenticity, and acceptance of a contract.
Additionally, Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions in the internal market (the “eIDAS Regulation”) became effective on 1 July 2016. This regulation replaced the previous e-Signatures Directive (1999/93/EC) and is directly applicable in all 28 EU member states.
The eIDAS Regulation is technology-neutral and recognizes three types of electronic signatures: SES, AES, and QES. Article 25(1) ensures that an electronic signature cannot be refused legal effect or admissibility as evidence in legal proceedings solely because it is electronic or does not meet QES requirements. Articles 25(2) and (3) grant QES the same legal effect as handwritten signatures and require that a QES recognized in one EU member state is also recognized in others. Recital 49 allows national laws to specify which type of electronic signature is required in particular situations.
Notable Changes in E-Signature Law Since 2020
None.
Documents That May be Signed Electronically
Examples of documents where a Standard Electronic Signature (SES) is generally suitable include:
- Human resources documents, such as employment contracts, benefits forms, and onboarding paperwork
- Business contracts between companies, including NDAs, procurement agreements, and sales contracts
- Consumer agreements, such as documents for opening new retail accounts
- Certain real estate documents, including lease agreements, purchase and sale contracts, and other related paperwork for both residential and commercial properties
Situations where a type of electronic signature other than SES may be required include:
- AES or QES – various corporate documents that require a company representative’s signature, such as shareholder or board meeting minutes, memoranda of association, and share certificates (Finnish Companies Act - Osakeyhtiölaki 624/2006)
- QES – prenuptial agreements (Marriage Act, Avioliittolaki 234/1929)
- QES – mortgage applications (Finnish Code of Real Estate - Maakaari 540/1995)
Further Guidance
Certain transactions are specifically excluded from digital or electronic processes, or require explicit procedures such as handwritten (wet ink) signatures or formal notarial acts, which are generally not compatible with electronic signatures or digital transaction management.
- Notarization – contracts and deeds for the transfer of real property (except leases, as noted above) (Finnish Code of Real Estate - Maakaari 540/1995)
- Witnesses – wills (Code of Inheritance, Perintökaari 40/1965)
[1] An AES, or “advanced electronic signature,” is a type of electronic signature that must: (a) be uniquely linked to the signer; (b) be capable of identifying the signer; (c) be created using means under the sole control of the signer; and (d) be connected to the signed data so that any changes can be detected.
[2] A QES is a specific form of digital signature that meets government requirements, including the use of a secure signature creation device, and is certified as ‘qualified’ by the government or an authorized entity.
As a country with a tiered eSignature legal model, Austria recognizes the concept of a QES (Qualified Electronic Signature), which requires independent accreditation by an approved certification body. While QES is only mandatory for certain types of transactions, as previously mentioned, Austria, as an EU member, follows ETSI (European Telecommunications Standards Institute) standards for QES technical requirements. Austria is also among the few countries where an AdES (Advanced Electronic Signature) can sometimes substitute for a QES. An AdES does not need approval from a local Austrian certification body but must use digital signature technology and may need to meet certain ETSI certifications. Austria, along with other EU countries, maintains a public list of authorized qualified electronic certificate providers.
DISCLAIMER: The content provided on this website is for general informational purposes only and does not constitute legal advice. Laws and regulations may change rapidly, and DocuSign cannot ensure that all information presented here is up to date or accurate. If you have specific legal questions regarding any information on this site, please consult a qualified attorney in your jurisdiction.
Last updated: January 20, 2023