What Is an Electronic Signature? Meaning, Validity, and Benefits

What Is an Electronic Signature

Paperwork no longer has to mean piles of paper.

With electronic signatures, you can sign documents online in just a few clicks. No printing, no scanning, no hassle.

Whether it’s a business contract or a government form, e-signatures are fast, safe, and legal. You can sign documents anytime, anywhere, using your phone or laptop using an electronic signature online platform.

What Is an Electronic Signature?

What Is an Electronic Signature?

An electronic signature, or e-signature, is a digital way to demonstrate a person’s consent or approval of an electronic document—in simple terms, this answers the question: what is an electronic signature. It can range from a simple “I agree” click to a complex cryptographically verified digital signature, which provides advanced security features.

Essentially, an e-signature assists in proving three important aspects:

  • Identity of the party signing – verifies the person signing the document
  • Intent to sign – indicates the signer’s intention to agree to the document
  • Integrity of the document – verifies that the document has not been modified after signing

These three aspects combine to make electronic signatures a trustworthy and accepted means of digitally signing documents and clearly explain the difference between digital signature and electronic signature in terms of security level and use cases.

Types of Electronic Signatures

1. Simple Electronic Signature (SES)

This is the most basic method of signing a document online. It includes:

  • Typing your name
  • Clicking on an “I agree” checkbox
  • Drawing your signature on a phone or laptop screen (a common electronic signature example)

The SES method is best suited for low-risk documents, internal approvals, or when a high level of legal proof is not necessary.

2. Advanced Electronic Signature (AES)

This type of signature is more secure and reliable. It involves additional security measures such as verification of identity and encryption to ensure the security of the signing process.

It assists in ensuring that:

  • The signature actually belongs to the person who signed
  • Any modifications made after signing can be easily detected

AES is widely used in business contracts and documents related to compliance

3. Qualified Electronic Signature (QES)

This is the most secure and legally strong type of electronic signature.

It usually includes:

  • Strong identity verification
  • Digital certificates for authentication
  • The highest level of legal acceptance

QES is best for important, high-value, or legally regulated documents where strict compliance is required.

Are Electronic Signatures Legally Valid?

Yes, they are.

Electronic signatures are recognized as legal in many countries across the globe, provided a few simple requirements are met.

What does this mean in simple terms?

  • Clear intention: It should be clear that the person intended to sign the agreement.
  • Verification of identity: It should be possible to verify whose signature is on the document.
  • No modifications allowed: The document should not be altered after it has been signed.

Once these requirements are met, the electronic signature is considered the same as a handwritten signature and can be enforced under the law. 

Legality of Electronic Signatures in India

Yes electronic signatures are completely legal in India

They are recognized under the Information Technology Act, 2000, which states that electronic documents and signatures will be given the same status as paper documents and handwritten signatures, provided the necessary formalities are complied with.

Commonly Accepted Forms in India

The most commonly used and accepted forms of e-signatures in India are:

  • Aadhaar-based eSign
  • Digital Signature Certificates (DSCs) issued by authorized bodies

These ensure the identity of the signing individual and also secure the document.

Where Electronic Signatures Are Used

Electronic signatures are widely used for:

  • Tax returns such as Income Tax and GST returns
  • Company compliance and ROC filings
  • Government forms and regulatory filings

Due to this legal recognition, e-signatures have become an integral part of India’s digital governance system and have made document processing faster, easier, and paperless.

Documents Where E-Signatures May Not Apply

Although e-signatures are sufficient for most types of paperwork, there are some documents that require a physical (handwritten) signature due to legal requirements.

These typically consist of:

  • Last will and testament papers
  • Trust deeds
  • Some property transfer papers

In these cases, a physical signature is still necessary to ensure the document is valid.

In summary: most paperwork can be signed online but a few important documents still require pen and paper.

How Electronic Signatures Work

Using an electronic signature is quite easy and simple. Here’s how it is done, including how to electronic signature PDF documents securely:

How Electronic Signatures Work

1. Upload the document

The document that is to be signed is uploaded to an e-signature platform.

2. Verify the signer’s identity

The system checks who the signer is. This can be done through email verification, OTP, Aadhaar-based verification, or a digital certificate.

3. Sign the document online

The person signing the document adds their e-signature by clicking a button, typing their name, drawing their signature, or using a secure digital signature. This explains how to make an electronic signature.

4. Create an audit trail

The system automatically records information such as date and time of signing, IP address, and activity logs.

All these steps combined make the process secure, transparent, and valid, which is why electronic signatures are trusted for signing documents online.

Common Uses of Electronic Signatures

1. Business & Corporate

Electronic signatures simplify business operations. They are used for:

  • Employment agreements
  • Non-disclosure agreements (NDAs)
  • Vendor and partnership agreements

2. Financial Services

In banking and financial institutions, e-signatures simplify approval and customer onboarding processes. They are used for:

  • Loan applications
  • Account opening applications
  • Payment authorizations

3. Real Estate

In real estate, e-signatures are commonly employed for:

  • Lease/Rental Agreements
  • Sale/Purchase Agreements

4. Government & Compliance

Government agencies and regulated sectors employ e-signatures for:

  • Tax Submissions
  • KYC Documents
  • Regulatory & Compliance Filings

In general, e-signatures help cut down on time and paperwork for approvals in various sectors

Benefits of Using Electronic Signatures

1. Faster & More Efficient

Documents can be signed in just a few minutes instead of taking days. This speeds up approvals and saves a lot of time.

2. More Secure

E-signatures come with security features like audit trails and tamper alerts, which help prove the document is genuine and prevent misuse.

3. Saves Money

No need to print, scan, courier, or store paper documents. This cuts down on extra costs and paperwork.

4. Easy & Convenient

You can sign documents from anywhere, using your phone, laptop, or tablet making the whole process simple and stress-free.

Electronic Signature vs Handwritten Signature 

AspectElectronic SignatureHandwritten Signature
SpeedSigned and completed instantlyTakes more time to print, sign, and send
SecuritySecure with audit trails and encryptionEasier to copy, forge, or alter
CostVery low cost—no paper or courier neededExtra costs for printing, courier, and storage
ConvenienceCan be signed anytime, from anywhereNeeds physical presence and paperwork

Conclusion

By using electronic signatures, organisations can work faster, cut down costs, and finish approvals much quicker without losing legal validity or security.

As more work goes digital, e-signatures are no longer just a nice extra. They’ve become a must-have for modern businesses.

FAQs

What are the uses of electronic signatures?

Electronic signatures are used to digitally sign business contracts, financial documents, real estate agreements, and government filings quickly and securely.

What is the legality of e-signature?

Electronic signatures are legally valid and enforceable in many countries, including India, where they are recognized under the Information Technology Act, 2000.

What defines an electronic signature?

An electronic signature is any electronic data, symbol, or process used to indicate a person’s intent to sign or approve an electronic document.

What are the three types of electronic signatures?

The three types of electronic signatures are Simple Electronic Signatures (SES), Advanced Electronic Signatures (AES), and Qualified Electronic Signatures (QES), each offering different levels of security and legal assurance.

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