Electronic signatures are all the talk – but what about electronic seals? They are inevitably entwined with electronic signatures, yet they serve an important function on their own as well. This article explores the legal side of seals and why they are so important, as well as the places where they are most useful. We’ll take a closer look at the legal framework governing seals, highlight their unique advantages and benefits, and examine real-world scenarios where seals play a critical role. Finally, we’ll explain how Circularo supports electronic seals and helps organizations manage them effectively.
The Legal Side of Sealing
Unlike electronic signatures, which are used by both natural and legal persons, electronic seals on their own were designed for use by legal entities or persons for situations where a signature may not necessarily be needed, but some sort of proof of origin and content is still required. Due to its nature, it can also serve as a way to anonymize, because the seal is associated with the company/entity and not an individual.
While an electronic signature is taken as an unambiguous expression of the will of a specific person (I, the official, have decided something), an electronic seal is a guarantee of the origin and immutability of a document (we, the authority, have created a document on a specific day).
In the European Union, seals are under the jurisdiction of the eIDAS Regulation (EU) No 910/2014. The regulation provides a robust legal framework for the use and qualification of electronic seals, signatures, and other similar services within the EU.
The regulation defines three types of seals:
- Simple electronic seal
Any electronic data attached to or logically associated with other electronic data to ensure its origin and integrity. This type of seal offers only a basic assurance of origin and content, while having the least standards it must meet.
- Advanced electronic seal (AdES)
For a seal to be considered Advanced under eIDAS, it has to meet several other requirements outlined in the Regulation. Among them, the seal must be uniquely linked to the creator (the legal person to whom the seal was issued), it must be capable of identifying the creator, and it must be linked to the data in such a way that any changes to it are detectable.
- Qualified electronic seal (QES)
As with a qualified electronic signature, qualified seals are the highest level of seals that can be achieved, and they meet the most stringent requirements, which is why they are legally the most certain and secure. Qualified electronic seals are created by a qualified seal creation device and covered by a qualified certificate issued by a qualified trust service provider.
Some sources may speak of other types of seals, but these three types are described as defined in the Regulation and especially its Article 36.
As mentioned before, seals are covered by certificates issued by Trusted Service Providers. Thus, if the certificate meets the requirements set out by the Regulation and is considered Advanced or Qualified, the seal is automatically recognized across the EU and is court-admissible. In a court of law, it provides evidence about the company that has used the seal – it can prove the organization’s identity and ownership of a specific document, as well as the authenticity of the document’s contents.
Advantages and Benefits of Seals
The use of seals carries quite a lot of benefits, but here are the main ones:
- Enhanced Security
A sealed document is tamper-proof because any alterations to its contents break the seal placed upon it, which is noticeable by recipients or readers. This guarantee of authenticity and integrity is especially important for sensitive documents such as contracts, invoices, financial reports, and medical records.
- Compliance with Regulations
Using an Advanced or Qualified seal ensures organizations comply with legal standards in the EU, which allows legal recognition of sealed documents across all EU member states.
- Efficiency
Electronic seals allow for the automation of document authentication processes, saving time compared to manual methods of physical stamps or signatures. For businesses that handle a high volume of documents, such as contracts or invoices, electronic seals speed up and streamline workflows. They can also help organizations during the process of digitalization.
- Cost reduction
By eliminating the need for printing and physical sealing, electronic seals reduce paper consumption and associated costs (e.g., stationery and storage).
- Improved Brand Image
The use of electronic seals enhances professionalism and reliability, promoting trust among clients, partners, and stakeholders.
- Audit Trail and Traceability
Every sealed document includes a timestamp of sealing and an audit trail that verifies its origin and integrity, which is essential for compliance and transparency.
Where Are Seals Most Important?
One of the biggest benefits of electronic seals is their ability to be used as part of automated processes to ensure document authenticity and verifiability. As they are tied to a specific entity, they can be automatically applied to a large number of documents, often upon creation, which secures the document contents and saves a lot of time, and allows for bulk processing of standardized documents.
In the same vein, electronic seals can help during the process of digitalization in organizations. For example, if a hospital wishes to digitize its patients’ records, it can set up automatic application of seals to the new digital document, thus proving the records originated in that specific hospital.
Here are some specific sectors that benefit from electronic sealing:
- Legal Sectors – law firms and notaries can certify contracts, agreements, and legal documents to maintain compliance and integrity.
- Finance and Banking – a seal can be applied to transaction records, statements, and agreements to enhance security, reduce fraud, and comply with regulations.
- Healthcare and Pharmaceuticals: Electronic seals secure health records, prescriptions, and medical reports.
- Education and Certification Bodies: Universities and certifying authorities use electronic seals to authenticate diplomas, transcripts, and certificates, preventing forgery and enabling rapid verification.
- Insurance: Insurance companies seal policy documents, claims, and agreements, streamlining verification and reducing paperwork.
- Real Estate and Property Management: Electronic seals are applied to lease agreements, property titles, and transaction records to ensure authenticity and speed up processing.
Seals and Circularo
Circularo versions from Business and up automatically offer the option to seal your documents with an eIDAS-certified Advanced electronic seal. One of the other benefits of sealing a document is that if needed, a signature can be later placed on the sealed document as well. Circularo supports businesses and organizations using an Organizational Certificate which is issued to a specific organization, and we also offer help in getting this certificate issued.
Does your company handle a large volume of documents? Do you need to process automatically generated invoices, receipts and confirmations? Integrate Circularo into your systems and use its sealing capabilities in smoothing out processes and streamlining workflows.
