Compliance Guide on the Use of Electronic Signatures in Ecuador

Are electronic signatures legal in Ecuador? What laws primarily regulate electronic signatures?

Electronic signatures are legal in Ecuador. They are regulated by the Electronic Commerce, Electronic Signatures, and Data Messages Law of 2002.

What types of electronic signatures are recognized in Ecuador? What are the requirements for each?

An electronic signature refers to any electronic form contained in a data message, attached to or logically associated with it, that can be used to identify the signatory in relation to the data message and indicates the signatory’s approval and confirmation of the information contained within the data message.

For an electronic signature to be legally binding in Ecuador, it must meet the following conditions:

• Be independent and exclusively linked to its owner;

• Allow the unambiguous verification of the authorship and identity of the signatory through technical verification devices established by this law and its regulations;

• Its creation and verification methods must be reliable, secure, and unalterable, consistent with the purpose of generating or transmitting the message;

• At the time the electronic signature is created, the signature creation data must be under the exclusive control of the signatory;

• The signature must be controlled by its owner (verified by a certification authority).

In what scenarios can electronic signatures be used in Ecuador?

Electronic signatures can be used in scenarios including, but not limited to, the following:

• Commercial agreements between corporate entities, including non-disclosure agreements, sales agreements, and service agreements.

• Consumer agreements, including documents for opening new retail accounts.

• Employee confidentiality and invention agreements.

• Insurance policies.

• Certificates issued by public entities.

• Software licensing contracts.

• Tax documents (invoices, withholding receipts, etc.).

In what scenarios are traditional signatures required in Ecuador?

The following scenarios generally require traditional signatures:

• Family and inheritance documents: wills, division of estate, liquidation of marital property, etc.

• Powers of attorney.

• Documents related to real estate: purchase and sale agreements, mortgages, property transfer agreements, etc.

• Constitution of mortgage loans and loan agreements, cancellation of mortgages.

• Establishment of agricultural liens.

• Corporate establishment and major changes: articles of incorporation, increase or reduction of corporate capital, mergers and spin-offs, corporate reactivation, dissolution and liquidation of companies, amendments to corporate bylaws, extension of terms, change of address, opening of branches, exclusion of partners, transfer of shares in limited liability companies, liquidation of corporate assets, etc.

• Contracts for the provision of hydrocarbon exploration services or other related contracts.

• Trustee indemnification.

• Matters related to the right of use.

• Trusts.

• Other instruments that require notarization.