eSignature Legality in Nepal

Use Cases for eSignatures

Use cases where an SES is typically appropriate include:

• Speedy HR document preparation with preapproved templates, easy update of each employee, new employee onboarding processes as well as 360 degree view of employee files.
• End user agreements including sales & service terms, new retail account opening documents, invoices, shipment details, user manual, EULAs, policies

Use Cases for Qualified Signatures

Use cases where an AES is typically appropriate include:

• Purchase, procurement and commercial agreements including invoices, trade and payment terms, certificates, NDAs, sales & distribution agreements, order acknowledgements.
• Real estate lease agreements for residential and commercial purpose

Use Cases that are not appropriate for Electronic Signatures

Use cases that are specifically barred from digital or electronic processes or that include explicit requirements, such as handwritten (e.g. wet ink) signatures or formal notarial process that are not usually compatible with electronic signatures or digital transaction management.

• Handwritten - power-of-attorney
• Handwritten - trust deed
• Handwritten - will or any other testamentary disposition
• Handwritten - Any contract for the sale or conveyance of immovable property or any interest in such property

List of Local Trust Service Providers

General Definitions

Simple Electronic Signature (SES)

A Simple Electronic Signature (SES) refers to any electronic data that is logically associated with other electronic data and used by a person to sign. This can include:

• Typing a name at the end of an email,
• Clicking an “I accept” button,
• Pasting a scanned image of a signature, or
• Using a stylus or finger to draw a signature on a touchscreen.

While SES can indicate intent to sign, it lacks advanced identity verification, integrity protection, or security features, making it the least secure type of electronic signature. It is legally valid in many jurisdictions but may not carry strong evidentiary weight without additional context or proof.

Advanced Electronic Signature (AES)

An Advanced Electronic Signature (AES) is a more secure form of electronic signature that must meet the following criteria:

• it is uniquely linked to the signatory
• it is capable of identifying the signatory
• it is created using means that are under the sole control of the signatory, and
• it is linked to the signed data in such a way that any subsequent change in the data is detectable.

AES provides enhanced legal reliability compared to SES and is often supported by multi-factor authentication, encryption, and audit trails.

Qualified Electronic Signature (QES)

A Qualified Electronic Signature (QES) is a type of Advanced Electronic Signature that additionally:

• is created using a qualified signature creation device (such as a secure token or smart card); and
• is backed by a qualified digital certificate issued by a recognized or accredited trust service provider.

QES provides the highest level of trust and legal assurance, and in many jurisdictions (like the EU under eIDAS, India IT Act, etc), it holds the same legal status as a handwritten signature.

Digital Signature

A Digital Signature is a specific technological implementation of an electronic signature that uses asymmetric cryptography. It allows a verifier to:

• confirm that the signature was created using the private key corresponding to the signer’s public key; and
• ensure that the signed message or document has not been altered after signing.

Digital signatures are the underlying cryptographic mechanism used in both AES and QES. They offer strong security guarantees such as authenticity, integrity, and non-repudiation and are often implemented through Public Key Infrastructure (PKI) systems.

External Resources