Advanced Electronic Signature - Simply Explained!

Our guest author Denis Treter explains to you in this article what advanced electronic signatures are and what you need to consider when creating them.
⁠
⁠The topic of electronic signatures has expanded significantly in recent years. With the existing security infrastructure and legal framework, digital signatures are increasingly used in many companies and applications. Corresponding legal acts are intended to lead to extensive legal and technical harmonisation in the area of electronic seals, timestamps and signatures.

What advanced electronic signature means

The advanced digital signature is a certificate form that is regulated by the EU Regulation No. 910/2014. Requirements for advanced electronic signatures are legally defined. They must be uniquely assigned to the signatories, thereby identifying him*her.

An electronic signature is generated using data that the signatories can use with a high degree of security under sole control. The signature is associated with the signed data so that later changes to the data can be detected.

An advanced digital signature created with a secure signature creation device and based on a qualified certificate is called a qualified electronic signature.

How the advanced electronic signature works

With an advanced electronic signature, each signature receives a digital certificate with a private security key: a kind of code. As a user*in, you have to identify yourself once at certified certification bodies to receive such digital certificates.

The advanced electronic signature is typically created using a Public Key Infrastructure (PKI) format. This involves creating two keys - a public and a private key. The AES is created with a private key for which the signers must identify themselves, for example with a PIN or a multi-factor authentication..

The recipients* receive the cryptographic document including the public key and signature. If the recipients* can verify the document file with the public key, they can be sure that the file has not been manipulated and is therefore valid.

What is the difference between a simple, advanced and qualified signature?

In addition to the advanced signature, two other electronic signatures are defined under eIDAS: the qualified electronic signature and the simple electronic signature.

Unlike a simple digital signature no special requirements are made. Users* can sign an online form with just a few clicks. Disadvantage: The procedure is prone to fraud and falsification. However, documents can be legally signed with a simple electronic signature if text form is sufficient.

An extended digital signature or advanced electronic signature provides significantly more legal certainty. When comparing security keys, the identity of the signer is legally verified and data protocols can be used to confirm the time of signing. If identification documents need to be uploaded during the signing process or at registration, this increases the evidential value additionally.

The safest form of electronic signature is the qualified electronic/digital signature (QES). If contracts require a handwritten signature, this is the only one that’s legitimate. Users* must use an identification device (smart card or USB stick). This makes the procedure quite complicated, so it is normally chosen only in particularly sensitive cases. According to the eIDAS Regulation, a document signed with QES has the same legal force in all EU Member States as a manually signed document.

What benefits does the advanced electronic signature offer?

Regulation sounds complicated, but the use of electronic signatures is straightforward and simple. Digital certificates and security keys are generated in the background for identification and encryption, but do not require user interaction.

When users* use a specialised E-signature softwareContractHero Vertragsmanagement it takes over the entire process of dispatching and creating authentication elements. The recipient* and sender* then have a high degree of certainty that the document is displayed intact and the signature has not been tampered with. Subsequent changes to the data are almost impossible.

An advanced digital signature comes into use in many different cases, as it primarily reduces the time and cost effort. Both advanced and qualified electronic signatures have certain advantages and disadvantages. While a qualified signature offers the highest security but is associated with more effort for the signers, an extended/advanced electronic signature saves time and costs, but is not suitable for all contracts.

The opening of loan agreements and bank accounts, signing of documents such as fixed-term or permanent employment contracts or the activation of SIM cards require qualified electronic signatures where the signers have to identify themselves shortly before signing. Most other contracts, such as insurance contracts or all commercial legal documents, can be signed with an advanced electronic signature, which saves money and time.

What needs to be considered with an advanced electronic signature?

An advanced electronic signature must meet stricter identity verification criteria and thus have a higher evidential value, as clearly defined in the eIDAS Regulation and the German Signature Act.

An advanced electronic signature should therefore be clearly and clearly assigned to the signatories. And allow the identification of the signer, with means under the sole control of the signer, such as a smartphone, tablet or PC and ensure that the legal act to which it refers cannot be amended.

This can be done by verifying and uploading the signer's identification document, as practiced by some providers. Since SIM cards in the European Union can only be sold after identity verification, an increasing number of advanced e-signature providers rely solely on SMS OTP authentication, as the basic identification of the signer has already taken place when purchasing the SIM card. However, some providers recommend a combination of one-time password via SMS and identity verification, always with the aim of strengthening the legal validity of the digital signature in a dispute.

How can I create an advanced electronic signature?

Technical processes are complex, but the effort for users* is limited. If you wish to create an advanced electronic signature, all you need is the right software.

The secret signature key and the public verification key are generated in the background using an algorithm. The recipient or recipient receives the verification key together with an encrypted message. If the document can be opened with it, it is ensured that the message has not been changed subsequently and the signature actually comes from the sender of the message.

Examples of the use of advanced electronic signatures are:

• Articles of association (GbR, OHG, KG)
• Template documents
• Patent, trademark or copyright agreements
• Resolutions of the managing directors* of the GmbH
• Social insurance / pension documents
• Certain leasing contracts
• Personal insurances like accident insurances,

disability insurances or life insurances that are not subject to the Money Laundering Act.

Digital progress has not only increased the demands for efficiency, remote work requires a complete digitalization of the processes. Electronic signatures are an important building block here. Traditional post is dying out: In the last few years, according to the Bitkom Digital Office Index, just under 70% of companies in Germany used letters frequently or very frequently; in 2022 it was slightly less than half.

The market research for digital signatures also shows that digital signatures are becoming standard for signatures in the business environment, with experts expecting the market to grow annually. Contract management software makes the use of e-signatures so easy and (legally) secure that even former skeptics are increasingly demanding e-signatures.

Which providers of advanced digital signatures are available on the market?

Today, there are diverse providers of digital signatures, some of which differ significantly in terms of functionality, price and user-friendliness. Take advantage of the free trial periods to see which provider is best for your applications.
⁠
⁠These are the 5 most popular e-signature software, based on the verified reviews and experiences of OMR-Reviews users*:

sproof sign

Adobe Sign

Flixcheck

DocuSign

Skribble

⁠
Our author Denis Treter will introduce you to some of the providers in more detail:

Flixcheck helps you get digital signatures from your customers. Depending on the application and needs, the company offers both simple electronic signatures (EES) and advanced electronic signatures (FES). The possibility of an advanced electronic signature should be available in all companies today. Basically, FES can be used, for example in the context of digital documents for contracts in any form, for trademarks, patents or copyrights, social insurance and pension insurance documents, for transactions, for insurance or even for leases.

Financial service providers and consultants who want to digitalize your processes can take pleasure in the following Flixcheck features in the basic license: assignment requests, SEPA direct debit orders, location information and multiple-choice or yes/no questions. The multiple signature function has also been added. This allows more than one person to sign a PDF document. Insurance policies can be executed and signed by married couples, for example.

With this FES feature, agreements and contracts can be signed in a way that ensures the integrity of the document and authenticates the signer.

MOXIS offers extensive functions for creating custom signature workflows. From a batch signature (with which you can sign hundreds of documents at the same time with just one signature) through a sophisticated rights and roles system to a template function.

Yousign offers a modern and fresh design, a comfortable signing process and a good overview of all your documents - both for you and for external signers*.

DocuSign supports QES and FES as well as a comprehensive document management with many options for individual workflows like approval options, templates, comments and more. Furthermore, DocuSign is not only started when a contract is signed, but also allows you to share information about the content of the document with counterparties so that they can suggest changes.

ContractHero Vertragsmanagement offers very simple signing process, which mostly works via e-mail. With a few clicks you send the contract stored in the tool to all external signers* who can sign on their smartphone/tablet or directly in the browser.

Signing and managing PDF documents with Adobe Sign is quick and simple. This is due to an effective process: documents can be signed on the smartphone or directly in the browser - without registration. Paper documents can even be "scanned" with the camera of the smartphone.

eversign offers all the important functions and possibilities to create documents, send, authenticate in a simple editor or via a touchscreen.

With signNow you can create digital signatures, manage contracts, process PDFs, create documents and more. In addition, even payment service providers can be integrated into signNow, allowing you to not only sign and send contracts, but also accept payments directly online.

With sproof sign you can quickly and easily collect signatures and sign documents digitally. The signatures are fully legally valid and GDPR compliant. In addition, sproof sign can be adapted to your own branding and integrated into existing systems (including API, SingleSignOn etc.) and workflows via API.

Further tools with which you can implement advanced electronic signatures are e.g. Skribble HelloSign and PandaDoc.

How much does an advanced electronic signature cost? Typically, you would pay between 80 and 130 € for a certificate of the advanced electronic signature, valid for three years, with several providers.

Conclusion

A systematic evaluation of signature providers supports the implementation of digital signatures. The range of services varies among many signature providers, so it is advisable to clarify all the points mentioned (as well as possible implementation periods and additional costs) with the provider before making a decision.

With the advanced electronic signature, you can create advanced digital signatures that are legally valid throughout the EU in a short space of time. They support governments and businesses on their journey to replace and digitalise handwritten signatures - without a card reader and chip card.