Electronic Signatures and Digital Documents in Paraguay

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

The Use 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 is no longer limited by physical distance.
• The security and integrity of these documents have improved.
• The authenticity of documents can be guaranteed, and their tampering can be prevented.

Let's see what Paraguayan regulations say 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In Paraguay, Law No. 6822/2021 on Trust Services (the “TSL”) repealed Law No. 4017/2010, which regulated the use of electronic signatures, digital signatures, and electronic documents.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 forms 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 unless such application is impossible due to their nature.

Electronic Signatures in Paraguay

An electronic signature may be qualified (formerly known as a digital signature) or non-qualified (formerly known as an electronic signature), and the two 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 it, which the signer uses to sign, which, as we can see, 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 may have legal validity.

According to Article 39 of the TSL, It is legally valid for private, judicial, and administrative proceedings, but it is not equivalent to a handwritten signature.

To confirm 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 they deny it, a comparison must be ordered, with the assistance of experts specializing in forensic computing.

On the other hand, a A qualified electronic signature has the same legal effect as a handwritten signature. It is generated using an appropriate electronic signature creation device based on an accredited certificate.

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

Currently, the Trust Service Providers are:

1. VIT, Inc.
2. CODE 100, Inc.
3. Documenta, Inc.
4. Ministry of the Interior
5. Confirma, Inc.

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 with or linked in any way to the document, regardless of whether it was generated simultaneously or not.”, and therefore they have full legal recognition and evidentiary value equivalent to paper documents.

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

Regarding the Conclusion of Contracts by Electronic 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 legal validity as those executed in traditional form. If a private electronic document is to be challenged, its falsity must be alleged in accordance with the provisions of Article 308 of the Code of Civil Procedure.

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 to and take advantage of these innovations in order to remain competitive in today’s business environment and fully benefit from their advantages.