Taiwan, China Electronic Signature Compliance Explanation

Are electronic signatures legal in Taiwan, China? What laws primarily regulate electronic signatures?

Electronic signatures are legal in Taiwan, and electronic signatures in Taiwan, China are primarily regulated by the “Electronic Signature Act” of 2001.

What types of electronic signatures are recognized in Taiwan, China? What are the respective requirements?

Taiwan, China recognizes two types of electronic signatures, namely electronic seals and digital seals.

1. Electronic Seals

   Refers to a seal that is attached to and associated with an electronic document to identify and confirm the identity, qualifications, and authenticity of the signatory of the electronic document.

   To have legal effect, electronic seals must meet the following requirements:

   • Content Integrity: The content of electronic or digital signatures in electronic documents must not be tampered with, altered, or modified without the authorization of the signatory.
   • Provide a copy of the signature: Electronic files signed with electronic or digital signatures must be kept accessible for subsequent reference by all parties to the file.
   • Mutual consent of the parties to use electronic signatures: Unless the other party to the transaction agrees to use electronic signatures, a reasonable period and method of objection should be given to the other party before adopting electronic signatures, and the other party to the transaction should be informed that non-objection is deemed as consent. The counterparty to the transaction may also express a decision to stop using electronic signatures at any time. This does not affect the validity of legal acts performed using electronic signatures prior to the expression of cessation.
   • Other relevant laws do not prohibit the use: The laws issued by the competent authorities do not prohibit the use of electronic signatures.
   • Other requirements of the competent authorities for electronic signatures or procedures: The competent authorities may, at their own discretion, require the use of certain technologies or the observance of certain procedures.

   By default, eSignGlobal electronic signatures can meet the requirements of Taiwan, China for electronic seals

2. Digital Seals

   Is a type of electronic seal that refers to the operation of electronic documents into a certain length of digital data through mathematical algorithms or other methods, encrypted by the signatory’s private key to form an electronic seal, which can be verified with a public key and has a certificate issued by a certification authority.

   In addition to meeting the requirements of electronic seals, the following conditions must also be met:

   • Encryption technology: Digital signatures must be encrypted by the signatory’s private key and can be verified through the public key.
   • Certified by a certificate issuing authority: Digital signatures must be issued by a certificate issued by a certified authority, and its certification practice statement must be approved by the Ministry of Digital Affairs.
   • Valid certificate: The certificate must remain valid, and the digital signature must not exceed the scope of use registered for it.

   The signatures provided by eSignGlobal after integrating local trusted service providers can meet the requirements of Taiwan, China for digital seals

In which scenarios can electronic signatures be used in Taiwan, China?

• Human resources files (such as regular employment contracts, confidentiality agreements, employee invention agreements, privacy statements, benefit files, and other new employee onboarding processes, excluding termination notices)
• Business agreements between corporate entities (such as confidentiality agreements, purchase orders, order confirmations, invoices, other procurement files, sales agreements, distribution agreements, service agreements)
• Consumer agreements (such as new retail account opening files, terms of sale, terms of service, software licenses, purchase orders, order confirmations, invoices, shipping files, user manuals, policies)

• Residential and commercial lease agreements

• Software license agreements

• Copyright, patent, and trademark licenses

Intangible property transfers (such as patent and copyright transfers)

In which scenarios should traditional signatures be used in Taiwan?

• Documents related to family law (such as marriage applications, spouse surname prefix agreements, marital property holding contracts, adoption agreements, wills and their annexes, and documents related to inheritance)
• Consumer loan agreements
• Insurance contract notices and insurance claim proof files required by the Financial Supervisory Commission and stipulated by insurance regulations
• Related files for shareholders to pledge shares
• Related files for soliciting proxies for shareholder meetings
• Contracts for the transfer, establishment, or modification of real property rights should be notarized by a notary public
• Real property transfer contracts and deeds