Electronic Signatures and Digital Documents in Paraguay

Technology has become integrated into our daily lives and has transformed the way we conduct business. It is therefore important to become familiar with it in order to take advantage of its many benefits.

The application of electronic signatures and digital documents is a clear example of these advancements.

These tools help simplify and streamline processes while also reducing costs:

• Signing contracts or sending documents no longer depends on physical distance.
• The security and integrity of these documents has increased.
• The authenticity of documents can be guaranteed and their manipulation prevented.

Let us see what Paraguayan regulation says about this matter.

Paraguayan Regulation on Electronic Signatures and Electronic Documents

In Paraguay, Law No. 6822/2021 on Trust Services (the “TSL”) repealed Law No. 4017/2010, which regulated the use of electronic signatures, digital signatures, and electronic documents.

The new law regulates and recognizes the legal effects of electronic signatures, electronic documents, and other innovative figures such as the electronic file, electronic seal, and certified electronic delivery service, among others.

It applies to transactions and legal acts, both public and private, as well as to private, administrative, and judicial proceedings conducted electronically, unless otherwise provided or impossible due to their nature.

Electronic Signature in Paraguay

The electronic signature may be qualified (formerly digital signature) or non-qualified (formerly electronic signature), and both have different legal effects.

The TSL defines an Electronic Signature as a set of data in electronic format attached to other electronic data or logically associated with them that the signer uses to sign, which, as we can observe, is a broad and not very specific definition.

A common question that arises in these cases is whether a non-qualified electronic signature has or can have legal validity.

According to Article 39 of the TSL, it has legal validity for private, judicial, and administrative procedures, but it is not equivalent to a handwritten signature.

To affirm its authenticity and legal validity, we must refer to Article 404 of the Civil Code, which states that the alleged signer must acknowledge the signature as their own, and if denied, a comparison must be ordered, with the intervention of experts specialized in forensic computing.

On the other hand, a Qualified Electronic Signature has legal effect equivalent to that of a handwritten signature. It is generated through a suitable electronic signature creation device based on an accredited certificate.

For this purpose, there are qualified trust service providers, who must comply with specific standards regulated by the Ministry of Industry and Commerce.

Currently, the Trust Service Providers are:

1. VIT S.A.
2. CODE 100 S.A.
3. Documenta S.A.
4. Ministry of the Interior
5. Confirma S.A.

This information is available here.

Electronic Documents in Paraguay

Electronic documents are defined by the TSL as “any information generated, communicated, received, or stored through electronic or similar means. This includes, where applicable, any information logically associated or linked in any way with the document, regardless of whether it was generated simultaneously or not”, and therefore they have full legal recognition and evidentiary value equivalent to documents in paper format.

Article 62 establishes their admissibility in private, judicial, and administrative proceedings.

Regarding the conclusion of contracts through telematic means, according to Article 67 of the TSL, the parties may express their offer and acceptance through electronic documents unless they have agreed otherwise.

These documents have the same validity as those executed in traditional form. If a private electronic document is to be challenged, its falsity must be alleged following the rules of Article 308 of the Civil Procedure Code.

Technology as an Advantage in an Increasingly Competitive Market

Electronic signatures and electronic documents have transformed the way we conduct business and manage documentation. Their legal recognition and regulation in our country represent a significant step toward modernization and security in transactions.

It is essential that we adapt and take advantage of these innovations in order to remain competitive in today’s business environment and fully benefit from their advantages.