Legality of eSignatures in Lithuania
Background
Electronic signatures have revolutionized the way documents are authenticated, making the finalization of agreements more efficient in Lithuania and worldwide. These digital tools enable quick and eco-friendly signing, reducing paper use and accelerating the pace of business transactions. However, understanding the critical considerations for implementing electronic signatures within Lithuania is vital.
Entities and individuals must select an electronic signature solution that adheres to Lithuanian laws, particularly the Law on Electronic Identification and Trust Services for Electronic Transactions [2018]. This legislation recognizes electronic signatures as equivalent to traditional pen-and-paper signatures. Yet, it’s important to remember that some documents may still necessitate a physical signature, and legal stipulations may differ across regions; thus, consulting with a legal expert is advisable.
The security of the electronic signature process is essential. The chosen service must provide vital security features, such as encryption, authentication, and detailed audit logs, to prevent unauthorized use and ensure document integrity. Services like BoldSign have been crafted to offer these security guarantees and meet compliance and security requirements.
In conclusion, while electronic signatures offer numerous benefits and enjoy broad acceptance, it is crucial to follow legal guidelines, prioritize security, and select an intuitive platform for their effective use in Lithuania.
What is an electronic signature?
As defined by the law on Electronic Identification and Trust Services for Electronic Transactions (2018), an electronic signature is a set of electronic data that is attached to, incorporated with, or logically associated with other electronic data. It is used to verify the purported author’s identity. Such signatures are legally binding. For most documents, the signatures must be securely linked to the signatory and protected against tampering or fraud. Meeting these requirements ensures that electronic signatures hold the same legal weight as handwritten ones.
Overview of electronic signatures in Lithuania
Electronic signatures are considered just as valid as traditional wet-ink signatures; however, their use is subject to specific regulations spelt out in:
- Law on Electronic Identification and Trust Services for Electronic Transactions1
- Regulation (E.U) No. 910/20142
The regulations classify these signatures into three categories:
- Standard electronic signatures
- Advanced electronic signatures
- Qualified electronic signatures
A standard electronic signature is any data either incorporated, linked, or logically connected with additional data to verify the authenticity of that additional data and establish the identity of the individual signing.
An advanced electronic signature is an electronic signature that meets the following conditions:
- Uniquely linked to the signatory
- Capable of identifying the signatory
- Created using a means that the signatory can maintain under their sole control
- Linked to the data to which it relates so that any subsequent change in the data is detectable
Uniquely linked to a person
An advanced electronic signature must be uniquely connected to the person using it. The signature must be uniquely created with methods that only the signer can access, like a private key and confidential information, to verify their identity.
Use and incorporations remaining in the signer’s sole control
The person using the advanced electronic signature must have sole control over the means of creating the signature. Typically, this requires managing a key pair or two-factor authentication, with the signer holding the private key exclusively to prevent unauthorized signature forgery.
Identify the person using the technological process
The process used to create the signature must be capable of identifying the person signing. This may include using a biometric signature, a personal identification number (PIN), an email address, or even a company registration number.
Track down any alterations made after signing
It is essential to preserve the authenticity of the signed document. Modifications made to the document post-signature should be identifiable. This is commonly accomplished through an audit trail. Audit trails record the signer’s IP address, timestamps of key signing events, and location, providing proof of identity, timing, and place of signature.
A qualified electronic signature is an advanced electronic signature that is generated using a certified device for creating electronic signatures and relying on an accredited certificate specific to electronic signatures. Article 323 of the eIDAS sets out the requirements for validating qualified eSignatures. These are:
- Statutory compliant certificate at the time of signing.
- A qualified trust service provider issued a certificate that was valid when signing.
- Signature validation data corresponds to the data provided to the relying party.
- A unique set of data representing the signatory in the certificate was correctly provided to the relying party.
- The use of any pseudonym is clearly indicated to the relying party if used at the time of signing.
- The electronic signature is of a qualified electronic signature creation device.
- The integrity of the signed data has not been compromised.
- Meets the validity standards of an advanced eSignature.
Summary analysis
Law on Electronic Identification and Trust Services for Electronic Transactions [2018] No Xiii-1120 and Regulation (E.U) No. 910/2014
| Type of signature | Unique features | Validity standard |
|---|---|---|
| Standard Electronic Signature | N/A | Bears the validity of a handwritten signature, subject to prior written agreement on its use by the signatories |
| Advanced electronic signature |
|
|
| Qualified electronic signature |
|
Bears the validity of a handwritten signature unless proven otherwise |
Trusted List (Trust service providers)
Subject to Article 22 of the eIDAS,4 the Communications Regulation Commission (CRC) reserves the duty and obligation to establish, maintain, and publish a list of trust service providers. The Trusted list maintains records of all accredited trust service providers operating within Lithuania, along with the trust services they offer. Upon request, trust service providers that are not accredited may also be included in the Trusted list.
The active accredited trust service providers are5:
Stay updated with the list by frequently reviewing the active trust service providers for each country within the European Union (eIDAS Dashboard (europa.eu)).
Scope and limitations of use
Electronic signatures are given statutory validity subject to a set of conditions. Article 5 of the law on Electronic Identification and Trust Services for Electronic Transactions Law as read with Article 25 of the eIDAS, grants qualified electronic signatures the same legal validity granted to wet-ink signatures (on the same breath where use of electronic signature other than a Q.E.S has been agreed upon in writing, the same shall be deemed to bear the validity of a handwritten signature) as such electronic signatures are deemed valid to be used in all documents.
Exemptions
While Lithuanian legislation seems to afford electronic signatures considerable legitimacy, it is important to acknowledge that regulations governing notarial acts mandate in-person signing6. Consequently, the following documents cannot be executed with electronic signatures:
- Contract of gift of immovable property, likewise a contract of gift whose object exceeds 5,000 litas7
- Official wills8
- Transactions on the transfer of the real rights in an immovable thing and transactions on the encumbrance of the real rights and of the immovable thing9
- Contracts of marriage (pre-nuptial and post-nuptial)10
- Notarial Acts performed by wardens11
- Notarial Acts performed by Notaries12
- Notarial Acts performed by Consular Officers of the Republic of Lithuania13
Summary scope
| Permissible transactions | Exempted transactions |
|---|---|
| All documents not requiring the use of notaries or such acts. |
|
To guarantee the legitimacy of an electronic signature, it is recommended to adhere to the following best practices while also ensuring compliance with all relevant legal obligations:
- Verify the identity of the person signing and, in cases involving companies, confirm that the individual is authorized to commit the company with their signature legally.
- Obtain explicit consent from the person signing, which can be included in the contract itself or provided through a separate consent document, acknowledging their intent to use the chosen electronic signature method for the document.
- Safeguard the document against any alterations post-application of the electronic signature.
- Maintain a detailed record of the entire signing process, documenting each action performed by the person executing the signature
Unique case laws in Lithuania
In the case of Tel Aviv Peace Court Civil Case 29488/04, as read with Case No. 2A– 95/2006, the presiding judge underscored the validity of a typed name in an email address as an indication of one’s intention to be bound by the +contents of the said email and a valid form of standard electronic signature.
How does BoldSign help?
The following elements of compliance available within BoldSign can be used to comply with Lithuanian eSignature laws:
- Secure and unique signing link: A secure and unique link to sign a document is sent directly to the signer’s email address. This ensures that the document is only accessed by the intended signer and cannot be tampered with.
- Password protection: Senders can specify a password that needs to be entered before viewing and signing a document. This adds another layer of security to the signing process.
- Audit trail: The IP address of the signer and timestamps for all significant events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when, and where.
- Digital signature: The final document is digitally signed with an AATL-compliant certificate. This ensures that the document cannot be tampered with without invalidating the signature.
- Consent: Signers are asked to confirm their intent to sign electronically and informed that they could opt out. This ensures that the signer is aware of the implications of signing electronically and has given their consent.
- Custom terms: Get your signers to agree to a custom set of terms. This can be useful to ensure additional security or that the signer understands the terms of the document.
Disclaimer: The information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.
However, Syncfusion’s officers, directors, stockholders, affiliates, attorneys, accountants, employees, or agents cannot provide legal advice. You should consult your personal attorney regarding your specific legal questions. Laws and regulations are subject to frequent changes, and the information may not be current or accurate. To the maximum extent permitted by law, Syncfusion provides this material on an “as-is” basis. Syncfusion disclaims and makes no representation or warranty of any kind with respect to this material, express, implied, or statutory, including representations, guarantees, or warranties of merchantability, fitness for a particular purpose, or accuracy.
Syncfusion makes no warranties of any kind, including but not limited to the information or the product, whether express, implied, statutory, or otherwise. To the maximum extent permitted by law, Syncfusion disclaims all conditions, representations, and warranties, whether express, implied, or statutory, with respect to this information, without limitation of any implied warranty of merchantability, fitness for a particular purpose, accuracy, or currentness of this information.
Syncfusion nor its officers, directors, stockholders, employees, affiliates, attorneys, accountants, or agents shall be liable for indemnification, nor does this create an express or implied, contractual or statutory, equitable or otherwise, under this agreement. The officers, directors, stockholders, affiliates, attorneys, accountants, or agents will not have any liability in any form.
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