Electronic signatures at a glance
In the wake of digital transformation, sending electronic documents online has become a common practice. Often, these documents require signatures as a showcase of the agreement. This is achieved with the help of electronic signatures. They provide an efficient way to sign documents online, reducing paperwork and enabling more streamlined transactions.
In addition to easing the process, e-signatures also help protect your documents with their enhanced security and authentication techniques. They outweigh handwritten signatures in various aspects, with security being the most significant. As a result, e-signatures are gaining popularity with businesses worldwide.
E-signatures and their influence on Japanese businesses
For decades, the Hanko, a personal seal, has been the foundation of document security in Japan. Symbolizing trust and considered inviolable, the Hanko holds deep cultural significance. The reliance on physical documents and Hanko usage has posed a huge challenge in an increasingly digital world. Here's where Zoho Sign steps in, allowing you to easily upload a digital image of a Hanko to any document, upholding tradition while meeting the demands of the digital age. The initiation of e-signature usage has significantly enhanced efficiency for Japanese businesses. This digital shift proved to be immensely advantageous as the Japanese highly value punctuality and precision in business practices.
Zoho Sign offers impeccable document management and authentication, making it the go-to solution for Japanese businesses. The adoption of Zoho Sign can help businesses achieve optimal performance by ticking crucial boxes, such as:
- Speed
- Productivity
- Authentication
- Security
- Remote access
- Improved user experience
- Cost-effectiveness
E-signatures at work: Key areas of use
- Education
- HR
- Transport
- Insurance
- Healthcare and life sciences
- Technology
- Banking
- Legal
E-signatures in Japan
In Japan, electronic signatures are regulated by Law No.102 of 2000, known as the Act on Electronic Signature and Certification Services, along with its accompanying regulations and ordinances. Zoho Sign facilitates legally binding transactions across various domains, paving the way for progress and innovation within the Japanese market.
E-signatures according to the E-Signature Act
"Electronic Signature" is defined as a measure of recording information in an electronic or magnetic manner that satisfies the following requirements:
- The Electronic Signature should indicate that the relevant information was created by the person who has taken that measure.
- The Electronic Signature should verify whether or not the relevant information has been altered.
An electromagnetic record (excluding those created by public officials in the course of their duties) shall be presumed to be authentic if an Electronic Signature:
- Relies on proper management of the codes and tools necessary for the signature.
- Is signed by the person in relation to the information recorded in the electromagnetic record and can only be affixed by that person.
Electronic documents that have been signed with an Electronic Signature that meets the requirements above are presumed to have been authentically created and can be considered equivalent to handwritten signatures and seals.
Legal requirements of an e-signature
The Ministry of Justice provided the following clarifications on the requirements for a valid Electronic Signature:
Sufficient uniqueness:
The signature must ensure a high level of uniqueness. This can be achieved through strong security measures, such as two-factor authentication. For example, a signatory could be authenticated by entering a one-time password sent via SMS or using a physical token, in addition to their email address and password.
Strong encryption:
The encryption must be strong enough to prevent others from easily replicating the signature key and meet a suitable technical standard. If the encryption strength is adequate, the signature is presumed to be valid.
How can Zoho Sign protect your business?
Zoho Sign safeguards your business documents by employing advanced security measures, such as:
Signer authentication:
Zoho Sign offers multiple methods—including email authentication, SMS authentication, dynamic knowledge-based authentication, and identity verification via third-party trust service providers—for reliable identification of the signatory.
Audit trails:
Detailed audit trails that record all actions taken during the signing process, including who signed the document, when it was signed, and any changes made to the document, are maintained. This helps ensure the integrity of the information by preventing alteration.
Encryption:
Zoho Sign uses military-grade AES-256 encryption at rest and SSL encryption in transit. Zoho Sign is based on public key infrastructure (PKI) that meets the technical standard prescribed by the Ministry in the Q&A of 2020.
Document timestamping:
Zoho Sign offers timestamping services through its partnership with Seiko, a timestamping authority (TSA) accredited by the Japan Data Communications Association (JADAC). This ensures the validity and legal recognition of the timestamped documents.
![Seiko]()
Certification bodies
The accredited certification body is any individual who intends to perform the specified certification service and obtains accreditation from the root authority that is the competent minister.
Foreign certification bodies
According to the ESA, any person seeking to offer specific certification services from an office located outside Japan may obtain the accreditation from the competent minister. The minister ensures that applicants meet the criteria similar to those of domestic certification services. Additionally, the applicant may be required to submit documents as specified by an ordinance published by the competent ministry.
Upon submission of required documents, the minister reviews them to either grant or renew certification to the foreign certification business operator. This ensures that foreign certification services align with international agreements and treaties while maintaining necessary standards.
Where can you not use an e-signature?
According to Article 3 of the ESA, electronic documents created by public officials in the course of their duties cannot be signed using an Electronic Signature.
Key takeaway
Despite Japan's technological prowess, the country's traditional norms and risk aversion prevent it from making the complete switch to digital transactions. Zoho Sign aims to address this challenge by providing a reliable and user-friendly platform with enhanced security measures, thereby emerging as a convenient and more viable alternative to traditional paper-based signing.
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Disclaimer
The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.