Japan Electronic Signature Compliance Explanation

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

Electronic signatures are legal in Japan, and they are primarily regulated by the “Electronic Signatures and Certification Business Act” (Act No. 102 of May 31, 2000) (hereinafter referred to as the “Electronic Signatures Act”), which came into effect on April 1, 2001, the “Act to Promote the Use of Electronic Authorization Documents” (the “E-POA Act”), which came into effect on January 1, 2018, and the revised Corporate Registration Act (the “Revised Corporate Registration Act of 2000”), which came into effect on October 1, 2000.

What is an electronic signature in Japan?

The “Electronic Signatures Act” defines “electronic signature” as measures taken for information that can be recorded in electromagnetic records (records prepared by electronic means, magnetic means, or any other means that cannot be perceived by human senses, used for information processing by computers).

What are the validity requirements for electronic signatures in Japan?

Under the Electronic Signatures Act, an electronic signature is presumed to be valid and authentic if it meets the following requirements:

• The electronic signature on the document is executed by the signatory;
• The electronic signature can only be used by the signatory (through proper management of codes and practices).

What types of electronic signatures are recognized in Japan? What are the respective requirements?

Electronic signatures that meet the definition specified in the “Electronic Signatures Act” have the same enforceability/admissibility presumption as “wet” signatures.

Japanese law does not distinguish between certificate-based digital signatures and electronic signatures in terms of enforceability/acceptability. Certificate-based digital signatures are primarily used for submitting electronic documents to government agencies. Most government electronic filing systems require authentication by the Japan Public Key Infrastructure (“JPKI”) or authorized service providers. The “Electronic Signatures Act” specifies the requirements for specific authentication services, including authentication by public key infrastructure and authorized providers of specific authentication services, which form the basis for digital signatures.

In Japan, in which scenarios is the use of electronic signatures typically not subject to any requirements?

The use of electronic signatures is typically not subject to requirements in the following scenarios, but not limited to:

• Human resources
• Procurement
• Corporate resolutions
• Confidentiality agreements
• Software licenses
• Healthcare
• Banking
• Real estate
• Loans
• Movable paper
• Insurance
• Education
• Life sciences
• Technology sector
• Documents requiring notarization
• Documents to be recorded
• Consumer transactions, etc.

In which situations in Japan cannot electronic signatures be used?

Electronic signatures cannot be used in the following scenarios:

• Important matter explanations for real estate transactions
• Fixed-term land/building lease contracts for commercial purposes
• Apartment management service contracts, etc.
• Contracts before and after the provision of specific continuous services, etc.
• Cooling-off period letters for financial instruments
• Wills