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, so it’s important to embrace it in order to take advantage of its many benefits. 

The Use of Electronic Signatures and Digital Documents It is a clear example of these advances. 

These tools help us simplify and streamline processes, as well as reduce costs:

• Signing contracts or sending documents is no longer limited by distance.
• The security and integrity of these documents have been enhanced.
• Authenticity can be guaranteed, and tampering can be prevented.

Let's see what Paraguayan regulations say about this.

Paraguayan Regulations on Electronic Signatures and Electronic Documents

In Paraguay, Law 6822/2021 on Trust Services (the LSC) repealed Law No. 4017/2010, which regulated the use of electronic signatures, digital signatures, and electronic documents.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 concepts such as the electronic file, electronic seal, certified electronic delivery service, among others. 

This applies to transactions and legal acts, whether public or private, as well as to private, administrative, and judicial proceedings conducted electronically, unless otherwise provided or unless such conduct is impossible due to their nature.

Electronic Signatures in Paraguay

An electronic signature can be qualified (formerly known as a digital signature) or unqualified (formerly known as an electronic signature), and the two have different legal effects.

The LSC defines the Electronic Signature as a set of data in electronic form attached to or logically associated with other electronic data that the signatory uses to sign which, as we can see, is a broad and rather vague definition. 

The question that usually arises in these cases is whether the non-qualified electronic signature has or may have legal validity.

As provided in Article 39 of the LSC, is valid for legal purposes, as well as 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 signatory must acknowledge the signature as his or her own; if he or she denies it, a comparison of the signature must be ordered., with the participation of experts in computer forensics.

On the other hand, the A Qualified Electronic Signature has the same legal effect as a handwritten signature. This is generated using a qualified electronic signature creation device based on a trusted certificate. 

To this end, there are qualified and trustworthy service providers who must adhere to specific standards regulated by the Ministry of Industry and Commerce.

The following are currently Trusted Service Providers:

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

The Electronic Documents are defined by the LSC as “Any information that is generated, communicated, received, or stored by electronic or similar means. This includes, where applicable, any information that is logically associated with or linked in any way to the document, regardless of whether it was generated simultaneously or not.””, and therefore has full legal recognition and evidentiary value, comparable to paper documents. 

Article 62 refers to its admissibility in private, judicial, and administrative proceedings.

With regard to the conclusion of contracts by electronic means, in accordance with Article 67 of the LSC, the parties may submit their offer and acceptance via electronic documents, unless they have agreed otherwise. 

These documents have the same legal validity as those executed in traditional form. If a party wishes to challenge a private electronic document, they must allege that it is forged, in accordance with the provisions of Article 308 of the CPC.

Technology as a Competitive Advantage in an Increasingly Competitive Market

Electronic signatures and electronic documents have transformed the way we conduct business and manage documents; therefore, their legal recognition and regulation in our country represent a significant step toward modernization and transaction security. 

It is essential that we adapt and take advantage of these innovations to remain competitive in today's business world and thus reap their full benefits.