What is an Electronic Signature?
An electronic signature is an alternative legal way to get consent or approval on electronic documents. One of the most common definitions of an electronic signature is “an electronic sound, symbol, or process attached to or logically associated with a record…adopted by a person with the intent to sign the record.”
In Singapore, the most common forms of electronic signatures are digitalized signings.
An e-signature can take the form of a click of an accept button on a website where the user accepts the terms and conditions, a facsimile or scan of a physical signature, signing on a touchscreen with a stylus, or agreeing to any terms and conditions using electronic communication such as e-mail, etc.
Electronic signatures can be used to replace handwritten signatures in virtually every personal or business process. Examples include, new hire onboarding forms, application forms, vendor onboarding documents and RFPs, change authorizations, nondisclosure agreements, and other contracts.
These electronic signatures can help businesses, especially small businesses, to reduce their business costs and stay competitive. With digitized proceedings, businesses no longer have to pay for paper printing and mailing services, and the storage of hardcopy documents can be reduced to the essential needs of the business. The business no longer relies on conducting sales where there are printers. Business can be conducted using portable devices like smartphones.
If your business is planning to move online, you should know about the taxation requirements on digital commerce. The tax system in Singapore is business friendly. However, not having a proper understanding of the requirements and not fulfilling these requirements, can lead to business failure. Therefore, a business needs to seek advice from trusted professional firms such as Paul Hype Page to advise them on these matters.