Lithuania: legal requirements and validity of electronic signatures

This article explores the legality of electronic signatures in Lithuania, highlighting the legal framework, standards, validity conditions, recent developments, and leading providers. By understanding these aspects, businesses and individuals can confidently utilise electronic signatures within Lithuania's legal landscape.

Legal signature requirements in Lithuania: understanding the basics

The primary legislation governing electronic signatures in Lithuania is Law No. XIII-1120 on electronic identification and trust services for electronic transactions. This law, along with EU Regulation No 910/2014 (eIDAS Regulation), forms the backbone of electronic signature law in Lithuania. 

Law No. XIII-1120 on electronic signature amended and updated the previous electronic signature legislation to align it more closely with the eIDAS Regulation and to address specific national requirements.

The law defines different types of electronic signatures and their legal status. It recognises three levels of electronic signatures:

• Simple electronic signature - This is the most basic form of electronic signature, which can be as simple as a checkbox. While it offers convenience, it may not always meet the requirements for high-security transactions.
• Advanced electronic signature - An advanced electronic signature provides a higher level of security by being uniquely linked to the signatory and capable of identifying them. It is created using electronic signature creation data that the signatory can use under their sole control.
• Qualified electronic signature - The highest level of electronic signature, a qualified electronic signature is equivalent to a traditional “wet-ink” signature in terms of legal standing. It requires a qualified certificate issued by a trusted service provider.

Each type of signature has different legal weight and requirements for validity. The law ensures that electronic signatures cannot be denied legal effect solely on the grounds that they are in electronic form. You can find the full text of Law No. XIII-1120 here, and the eIDAS Regulation here. 

The combination of these laws establishes a solid legal foundation for electronic signature legality in Lithuania. 

Electronic signature law in Lithuania: key provisions

The key provisions of the Lithuanian electronic signature legal framework includes:

1. Legal recognition: Electronic signatures are legally recognised and cannot be denied legal effect solely on the grounds that they are in electronic form.
2. Equivalence to handwritten signatures: Qualified electronic signatures have the same legal effect as handwritten signatures.
3. Admissibility as evidence: Electronic signatures are admissible as evidence in legal proceedings.
4. Cross-border recognition: Lithuania recognises electronic signatures issued in other EU member states, provided they meet the requirements set out in the eIDAS Regulation.

Electronic signature law in Lithuania: requirements for legally binding electronic signatures

To ensure that an electronic signature is legally binding in Lithuania, specific standards and conditions must be met. These requirements align with both national laws and EU regulations:

1. Identification of the signatory: The electronic signature must be uniquely linked to the signatory, allowing for their identification. This ensures that the signature is personal and attributable to the individual.
2. Integrity of the signed document: The signed document must remain intact and unaltered after the signature is applied. Any changes to the document would render the signature invalid.
3. Consent and intent: The signatory must have the intent to sign the document electronically and must consent to use an electronic signature for the transaction.
4. Control: The method used to create the electronic signature must be under the sole control of the signatory.
5. Association with the document: The electronic signature must be logically associated with the document, ensuring that any subsequent changes to the document are detectable.
6. Adherence to security protocols: The creation and verification of electronic signatures must adhere to strict security protocols to protect against fraud and unauthorised access.
7. Compliance with EU standards: Electronic signatures must align with the EU standards outlined in the eIDAS Regulation, ensuring cross-border recognition and legal enforceability.

Qualified signatures must meet the following additional requirements to be legally binding:

8. Certification by trusted service providers: For a qualified electronic signature to be legally binding, it must be accompanied by a qualified certificate issued by a trusted service provider recognised by the Lithuanian government.
9. Use of secure signature creation devices: The signature must be created using a secure signature creation device, ensuring the confidentiality and integrity of the signing process.

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Find out more about eSignature laws in Eastern Europe:

• Legal requirements for eSignature in Croatia
• Legal requirements for eSignature in Cyprus
• Legal requirements for eSignature in Czechia
• Legal requirements for eSignature in Estonia
• Legal requirements for eSignature in Hungary
• Legal requirements for eSignature in Latvia
• Legal requirements for eSignature in Poland
• Legal requirements for eSignature in Romania
• Legal requirements for eSignature in Slovakia
• Legal requirements for eSignature in Ukraine

Electronic signature legality in Lithuania: exceptions and limitations

While electronic signatures are generally legally valid in Lithuania, there are some circumstances where they may not be accepted:

1. Documents requiring notarization: Some legal documents, such as real estate transactions or wills, may require notarization and may not be valid with only an electronic signature.
2. Government documents: Certain official government documents may still require handwritten signatures.
3. High-value transactions: Some financial institutions or businesses may require additional verification for high-value transactions, even if an electronic signature is used.
4. Lack of identification: If the electronic signature cannot be uniquely linked to the signer, it may not be considered legally binding.
5. Document alteration: Any changes made to the signed document after the signature is applied may invalidate the signature, as it compromises the document's integrity.
6. Non-compliance with legal standards: Failure to comply with legal requirements may lead to the signature being deemed invalid.
7. Lack of consent: If the signatory did not consent to the use of an electronic signature, the signature may not hold legal weight.
8. Absence of a qualified certificate: For qualified electronic signatures, the absence of a qualified certificate from a recognised service provider can invalidate the signature.
9. Use of insecure devices: If the signature is created using insecure devices, it may not meet the security standards required for legal recognition.

Recent court decisions on electronic signatures in Lithuania

While there have not been any significant court rulings specifically focused on electronic signatures in Lithuania in recent times, the robust legal framework provided by the EU eIDAS Regulation, complemented by Lithuanian national legislation, ensures their widespread acceptance and enforceability.

Lithuanian courts consistently uphold the validity of electronic signatures, especially qualified electronic signatures, as they are recognised under both EU and Lithuanian law as being equivalent to handwritten signatures. This recognition is particularly strong for qualified electronic signatures, which meet the highest standards of security and authenticity as outlined in the eIDAS Regulation.

It is important to note, however, that the validity and enforceability of electronic signatures in any legal dispute can depend heavily on the specific details and context of the case. Factors such as the nature of the transaction, the type of electronic signature used, and compliance with the necessary legal requirements all play critical roles in how courts may interpret and rule on the use of electronic signatures. Therefore, while the legal infrastructure is well-established, parties using electronic signatures should ensure that they adhere to all applicable standards and legal provisions to avoid potential challenges in court.

Forthcoming legislation on electronic signatures in Lithuania

Currently, there are no major pending changes to electronic signature legislation in Lithuania. However, the country remains actively engaged in aligning its legal and regulatory framework with broader EU initiatives aimed at enhancing digital trust services and promoting the widespread adoption of electronic identification across member states.

Lithuania is a committed participant in the EU's Digital Single Market strategy, which seeks to streamline and improve cross-border digital services within the European Union. This initiative is central to fostering a cohesive digital economy across the region, and Lithuania’s ongoing alignment with these objectives underscores its dedication to facilitating secure and seamless digital transactions.

As part of this ongoing process, any future amendments or new regulations at the EU level concerning electronic signatures and digital trust services would likely be integrated into Lithuanian law. This proactive approach ensures that Lithuania remains at the forefront of digital innovation and maintains compliance with the highest standards of security and interoperability within the EU. Additionally, such integration would further enhance the legal certainty and cross-border recognition of electronic signatures, benefiting businesses and individuals engaged in digital transactions across the EU.

Industry-specific standards for electronic signatures in Lithuania

While the general legal framework for electronic signatures applies across industries, certain industries and contract types in Lithuania require specific standards for electronic signatures. These standards ensure that electronic signatures meet the unique needs and security requirements of different sectors:

1. Financial services: In the financial services sector, electronic signatures are widely used for transactions, agreements, and customer onboarding processes. However, specific standards must be met to ensure compliance with regulatory requirements:

• Use of advanced or qualified electronic signatures - Financial institutions often require advanced or qualified electronic signatures for high-value transactions and legal agreements to ensure the highest level of security and authenticity.
• Compliance with Anti-Money Laundering (AML) regulations - Electronic signatures used in financial transactions must comply with AML regulations, ensuring proper identification and verification of signers.
• Integration with digital banking platforms - Electronic signatures are integrated with digital banking platforms, allowing customers to securely sign agreements and conduct transactions online.

2. Healthcare: The healthcare sector also utilises electronic signatures for various purposes, including patient consent forms, medical records, and prescriptions. Specific standards ensure the confidentiality and integrity of healthcare data:

• Compliance with health data protection regulations - Electronic signatures in healthcare must comply with regulations governing the protection of health data, ensuring patient confidentiality.
• Use of advanced or qualified electronic signatures - For sensitive medical documents, advanced or qualified electronic signatures are often required to ensure the highest level of security and authenticity.
• Integration with Electronic Health Record (EHR) systems - Electronic signatures are integrated with EHR systems, allowing healthcare providers to securely sign and manage medical records.

3. Public sector: Government agencies may have their own guidelines for accepting electronic signatures on official documents.
4. Legal services: Law firms and legal professionals often use qualified electronic signatures to ensure the highest level of legal certainty for their clients.
5. Real estate: While some property-related documents can be signed electronically, certain property agreements may still require handwritten signatures. Parties should verify the specific requirements before proceeding.

It's advisable to check with relevant industry regulators or professional associations for any sector-specific requirements regarding electronic signatures.

Adoption of electronic signatures in Lithuania

Lithuania has been making significant strides in digital transformation, including the adoption of electronic signatures. The country has a well-developed digital infrastructure, which has facilitated the uptake of eSignature technologies. The adoption is driven by the need for efficiency, convenience, and security in business and legal transactions. The COVID-19 pandemic has further accelerated the adoption of electronic signatures across various sectors, as businesses and government agencies sought to maintain operations while minimising physical contact. Some key factors contributing to the widespread adoption include:

1. Government support: The Lithuanian government actively supports the use of electronic signatures, promoting their adoption across various sectors and ensuring compliance with EU regulations.
2. Business efficiency: Electronic signatures streamline business processes, reducing the time and cost associated with paper-based signatures and increasing operational efficiency.
3. Legal recognition: The legal recognition of electronic signatures under Lithuanian law and the eIDAS Regulation enhances trust and confidence in their use for legal transactions.
4. Digital transformation: The ongoing digital transformation in Lithuania has accelerated the adoption of electronic signatures, with businesses and individuals embracing digital solutions for everyday transactions.
5. Cross-border transactions: Electronic signatures facilitate cross-border transactions within the EU, providing a standardised and legally recognised method of signing agreements and contracts.
6. Remote work: The rise of remote work and online transactions has further fueled the adoption of electronic signatures, enabling businesses to conduct operations seamlessly from anywhere.

Leading providers of electronic signature services in Lithuania

Several leading providers offer electronic signature solutions in Lithuania, catering to businesses and individuals seeking secure and efficient signing processes. Some of the top providers include:

1. DocuSign: A global leader in electronic signature solutions.
2. Juro: A popular contract automation platform known for its user-friendly interface and robust security features, Juro is a popular choice for businesses of all sizes.
3. Adobe Sign: Part of the Adobe Document Cloud suite.
4. SignNow: Offers a user-friendly platform for electronic signatures. 
5. HelloSign: A Dropbox company providing electronic signature solutions.

These providers offer a range of solutions from simple electronic signatures to qualified electronic signatures that meet the highest legal standards in Lithuania and the EU.

FAQ: common questions about electronic signatures in Lithuania

What is the legal status of electronic signatures in Lithuania?

Electronic signatures are legally recognised in Lithuania under Law No. XIII-1120 and the eIDAS Regulation. They are considered legally binding if they meet specific criteria and standards.

What types of electronic signatures are recognised in Lithuania?

Lithuania recognises three types of electronic signatures: simple electronic signatures, advanced electronic signatures, and qualified electronic signatures. Qualified electronic signatures have the highest legal standing and are equivalent to handwritten signatures.

When is an electronic signature not valid in Lithuania?

An electronic signature may not be valid if it lacks proper identification, consent, compliance with legal standards, or if the signed document is altered. The absence of a qualified certificate for qualified electronic signatures can also render them invalid.

Can I use an electronic signature for all types of documents in Lithuania?

While electronic signatures are widely accepted, some documents (like notarized documents) may still require handwritten signatures.

Do I need special software to create a legally valid electronic signature in Lithuania?

For simple or advanced electronic signatures, various software solutions are available. For qualified electronic signatures, you need to use a service provided by a qualified trust service provider.

Are there specific standards for electronic signatures in certain industries?

Yes, certain industries, such as financial services, healthcare, and legal services have specific standards for electronic signatures to ensure compliance with regulatory requirements and security standards.

How can I ensure the legality of an electronic signature in Lithuania?

To ensure the legality of an electronic signature, use a qualified electronic signature with a qualified certificate from a recognised service provider. Ensure compliance with the eIDAS Regulation and the Lithuanian law on electronic signature.

Are electronic signatures widely used in Lithuania?

Yes, electronic signatures are widely used in Lithuania across various sectors, driven by the need for efficiency, legal recognition, and digital transformation.

What are the benefits of using electronic signatures in Lithuania?

Electronic signatures offer numerous benefits, including increased efficiency, reduced costs, legal recognition, enhanced security, and the ability to conduct cross-border transactions seamlessly.

Are electronic signatures from other EU countries recognised in Lithuania?

Yes, Lithuania recognises electronic signatures issued in other EU member states, provided they meet the requirements set out in the eIDAS Regulation.

How can I choose the right electronic signature provider in Lithuania?

Consider factors such as security features, ease of use, compliance with industry standards, integration capabilities, and customer support when choosing an electronic signature provider.

Who are the leading providers of electronic signatures in Lithuania?

Leading providers include Juro, DocuSign, Adobe Sign, SignNow, and HelloSign offering a range of solutions to meet various needs.

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Electronic signatures have gained widespread acceptance and legal recognition in Lithuania, supported by a robust legal framework aligned with EU regulations. As the country continues to embrace digital transformation, the use of electronic signatures is likely to grow across various sectors, streamlining business processes and enhancing efficiency in legal and commercial transactions.

By understanding the legal requirements and standards for electronic signatures in Lithuania, businesses and individuals can confidently utilise this technology for secure and legally binding transactions.

Juro is not a law firm and this article should not be relied on as legal advice.