Legality of eSignatures in North Macedonia

Background

North Macedonia and the world are riding the wave of digital transformation, with electronic signatures and transactions leading the charge. The shift from paper to electronic signatures accelerates the completion of various dealings.

For successful adoption in North Macedonia, selecting an electronic signature tool that aligns with the nation’s legal stipulations, specifically the Law on Electronic Documents, Electronic Identification and Trust Services¹ is crucial. This is to ascertain electronic signatures’ legal validity compared to their handwritten counterparts within North Macedonia. Despite the progressive acceptance, it is essential to recognize that some documents may still need a physical signature, and seeking legal consultation is advisable to navigate variable regional laws.²

Robust security mechanisms within electronic signature platforms are paramount. It is imperative for services to incorporate formidable safeguards, including the encryption of sensitive data, verification of signer identities, and the establishment of comprehensive audit trails. Such measures serve as critical bulwarks against unauthorized access, thereby ensuring the indisputable authenticity of documents. As a prime example, BoldSign stands at the forefront of this domain, offering these essential security features in full compliance with stringent legal and security standards.

For North Macedonia enterprises, it is essential to emphasize legal conformity, elevate security measures, and choose user-friendly platforms for integrating electronic signatures into their business frameworks. This approach boosts productivity and ensures the protection of their business exchanges.

What is an electronic signature

An electronic signature is any assortment of electronic data attached to, integrated with, or logically connected to other electronic data intended to identify the signatory³. These signatures have the same legal status as handwritten signatures, provided they are securely associated with the signatory and safeguarded against alteration or forgery. Fulfilling these conditions grants electronic signatures equivalent legal standing to traditional signatures.

Overview of the regulatory framework

Despite not being a member of the European Community, North Macedonia has established strong connections with the European Free Trade Area countries, leading to its signing of a trade agreement with the countries in EFTA on 19th June 2000. As a result of these connections, North Macedonia has incorporated Regulation No. 910/2014 into its national framework, which pertains to electronic transactions and identification systems⁴.

The use of electronic signatures in transactions is regulated by the Law on Electronic Documents, Electronic Identification, and Trust Services.⁵ and Law on Electronic Commerce⁶.

The regulations grant electronic contracts legal validity, and as such, the validity of an electronic transaction cannot be challenged merely because the signature and/or the transaction are in electronic form.⁷

The regulation categorizes the signatures into:

Standard electronic signature
Advanced electronic signature
Qualified electronic signature

A standard electronic signature is any electronic data connected to, integrated within, or logically linked with other electronic data, and it functions to verify the identity of the supposed sender⁸.

An advanced electronic signature is an electronic signature that is⁹ :

Uniquely linked to the signatory.
Capable of identifying the signatory.
Created using means that the signatory can maintain his control.
Linked to the data it relates to so that any subsequent change to the data is detectable.

Uniquely linked to the signer

An advanced electronic signature must be uniquely connected to the person using it. The signature must be uniquely made with methods only the signer can access, like a private key and confidential information, to verify their identity.

Use and incorporation remain in their 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 exclusively holding the private key to prevent 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

Preserving the authenticity of the signed document is essential. Modifications made to the document post-signature should be identifiable. This is commonly accomplished through an audit trail. Audit trails record the signer’s I.P. address, timestamps of key signing events, and location, providing proof of identity, timing, and signature place.

A qualified electronic signature is an advanced electronic signature that is generated using a certified device to create electronic signatures. It relies on an accredited certificate specific to electronic signatures.¹⁰ For a qualified electronic signature to be deemed valid, it must bear the following standards¹¹:

Statutory compliant certificate at the time of signing.
A qualified trust service provider issued a valid certificate when signing.
Signature validation data corresponds to the data provided to the relying party.
The 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 created by a qualified electronic signature creation device.
The integrity of the signed data has not been compromised.
Meets validity standards of an advanced eSignature.

Summary

Under Law on Electronic Documents, Electronic Identification, and Trust Services

Type of Signature	Unique Features
Simple Electronic Signature	No unique feature other than being data in electronic form.
Advanced Electronic Signature	Uniquely linked to the signatory. Capable of identifying the signatory. Created using means that the signatory can maintain his control. Linked to the data it relates to so that any subsequent change to the data is detectable.
Qualified Electronic Signature	Certificate compliant with laws provided at signing. The trust service provider issued a valid certificate at signing. Signature validation matches the data given to the recipient. The signatory's unique data is accurately given to the recipient. Any pseudonym used is disclosed to the recipient. Signature made with a qualified electronic signature device. Signed data integrity maintained. Meets all features of the advanced eSignature.

Scope and limitations

Electronic signature transactions and their utilization do not have universal legal acceptance for document finalization. Consequently, there are specific types of transactions and uses for which electronic signatures are suitable, and others are not. Below is an analysis of this matter, accompanied by a summarized table of the transactions.

Documents that can be signed

Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:

Human Resources
Procurement
Non-Disclosure Agreements (assuming they are contracts, not formal deeds)
Internal correspondences
End-user licences
Educational Field
Offer letters

Exemption

The Law on Electronic Commerce limits the scope of electronic transactions, by exempting the following transactions from completion in electronic signatures¹²:

Transactions under family and inheritance laws.
Transactions that create or transfer rights to immovable property, with the exception of lease rights.
Dealings for which, according to the law, there is a need for the involvement of courts, notaries, or similar professions.
Agreements and transactions for a given guarantee and additional security by persons acting for purposes outside their trade, work, or professional engagement.
Taxation
Notary activities or similar professions involving a direct and specific connection between
The user and the relevant competent authority of the state administration.
Representation of the user and the defense of his interests in court.
Gambling with monetary investments, including lotteries and betting transactions.

Summary scope and limitation

Permissible transactions	Exempted transactions
Human resources ProcurementNon-disclosure agreements (assuming they are contracts, not formal deeds) Software license agreements Public petitions Insurance industry Educational field, etc.	Transactions under family law Applications for facts to be entered or entries modified. Transactions under inheritance law Wills Codicils Other testamentary documents Transactions with courts Notaries Powers of attorney Conveyancing Taxation Suretyship transactions Gambling and lotteries

To ensure the authenticity of an electronic signature, it is advisable to follow these best practices in addition to complying with all applicable legal requirements:

Confirm the signer’s identity and, in business dealings, verify that the individual is duly authorized to act on behalf of the company in affixing their signature.
Secure explicit agreement from the individual signing, which may be incorporated in the contract itself or in a separate accord, to signify their intention to use the specified electronic signature for the document in question.
Safeguard the document to prevent any modifications after the signature is applied.
Keep an exhaustive log of the signing procedure, recording each step the signer performs.

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with North Macedonia’s 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 records 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 consented.
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 change frequently, and this 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 any implied warranty of merchantability, fitness for a particular purpose, accuracy, or currentness of this information.

Syncfusion nor their 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.

¹ North Macedonia Law on Electronic Documents, Electronic Identification and Trust Services – [https://Trusteid.Mioa.Gov.Mk/Wp-Content/Uploads/2021/10/Law-On-Electronic-Documents.Pdf]
² Anna Nordén, ‘Electronic signatures in a legal context’, in Cecilia Magnusson Sjöberg, editor, I.T. Law for I.T. Professionals – an introduction (Studentlitteratur AB; 2005) pp. 152-154; Ubena John, ‘E-documents & eSignatures in Tanzania: Their Role, Status, and the Future’, p 104; Stephen Mason, ‘The practical issues in using electronic signatures in different jurisdictions’, Computer and Telecommunications Law Review, 2021, Volume 27, Issue 6, pp. 165-179
³ Law on Electronic Commerce, Art. 3 (6) – [https://ecommerce4all.mk/en/zakon-za-elektronska-trgovi%D1%98a-so-izmeni-do-2020/]
⁴ Toshevska-Trpchevska, K., Disoska, E.M., Kikerkova, I. and Tonovska, J.Challenges for Western Balkan Countries Regional Integration: the Case of North Macedonia. (European Scientific Journal, ESJ), 18(22), p.23.
⁵ North Macedonia Law on Electronic Documents, Electronic Identification and Trust Services – [https://Trusteid.Mioa.Gov.Mk/Wp-Content/Uploads/2021/10/Law-On-Electronic-Documents.Pdf]
⁶ Electronic Commerce Law – [https://Ecommerce4all.Mk/En/Zakon-Za-Elektronska-Trgovi%D1%98a-So-Izmeni-Do-2020/]
⁷ Ibid. Art 10 (1, 2, & 3)
⁸ North Macedonia Law on Electronic Documents, Electronic Identification and Trust Services – Art. 3(18) – [https://Trusteid.Mioa.Gov.Mk/Wp-Content/Uploads/2021/10/Law-On-Electronic-Documents.Pdf]
⁹ North Macedonia Law on Electronic Documents, Electronic Identification and Trust Services – Art. 3(28) & 38 – [https://Trusteid.Mioa.Gov.Mk/Wp-Content/Uploads/2021/10/Law-On-Electronic-Documents.Pdf]
¹⁰ Ibid Art. 3 (29)
¹¹ Ibid Art. 46 (1)
¹² Electronic Commerce Law – Art 10 (5) – [https://Ecommerce4all.Mk/En/Zakon-Za-Elektronska-Trgovi%D1%98a-So-Izmeni-Do-2020/]

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