Thomas Moretti, axelity ag
Co-founder and Managing Director of axelity ag | Product strategist of the Swiss signing solution actaSIGN®
Digital Signature vs. Electronic Signature — What Is the Difference?
Anyone looking to sign a contract without paper will quickly come across two terms: "digital signature" and "electronic signature". In everyday language they are used interchangeably — but technically and legally there is a difference. This article explains what lies behind the terms, which legal framework applies in Switzerland, and how businesses can make the switch to paperless signing in practice.
Everyday Language vs. Technical Terminology
In day-to-day business, most people say "sign digitally" — meaning: sign a contract on screen without printing it. That is perfectly correct and understandable. However, legal and technical experts distinguish two terms:
Digital Signature — the Technology
A digital signature is a cryptographic method. A unique hash value is calculated from the document content and encrypted with the signer's private key. The recipient can use the corresponding public key to verify whether the document has been altered since signing and whether the signature genuinely originates from the stated person. In other words, a digital signature is a mathematical method for verifying integrity and authenticity.
Electronic Signature — the Legal Term
An electronic signature is the legal umbrella term. It encompasses all forms of electronic consent — from a typed name at the bottom of an email to a qualified electronic signature (QES) with two-factor authentication. In Switzerland, ZertES defines three signature levels: SES (simple), AES (advanced) and QES (qualified electronic signature).
In Practice: the Same Goal
For everyday business purposes, the distinction is academic. Whether someone says "digital signature" or "electronic signature", they mean the same thing: a legally valid signature without paper. What matters is not the term, but the signature level and the legal basis.
Legal Framework in Switzerland
In Switzerland, ZertES (Federal Act on Certification Services in the Area of Electronic Signatures) governs the legal validity. There are three levels: SES (simple), AES (advanced), and QES (qualified). The QES — together with a qualified timestamp — is legally equivalent to a handwritten signature (CO Art. 14 para. 2bis). Which level you need for which purpose is explained in our article Difference Between SES, AES, and QES — Which Signature Do You Need?.
What Can You Sign Digitally?
The good news: the vast majority of business documents can be legally concluded with an electronic signature. Under Swiss law, the principle of freedom of form applies — contracts are valid regardless of form, unless the law prescribes otherwise (CO Art. 11).
Examples of Documents You Can Sign Digitally
- Employment contracts: No form requirement under CO Art. 320. AES or QES is recommended.
- Purchase contracts and orders: Generally no form requirement. SES or AES is sufficient.
- Quotations and order confirmations: No form requirement. SES is sufficient.
- Lease and rental agreements: No form requirement. AES recommended.
- Internal approvals and sign-offs: SES is sufficient.
- General terms and conditions: AES or QES depending on context.
Exceptions — Where Paper Is Still Required
A small number of legal transactions still require paper:
- Surety declarations: The surety's own handwritten signature and handwritten specification of the maximum liability amount are required (CO Art. 493).
- Real estate purchase agreements: Notarial authentication is mandatory (CO Art. 216).
- Holographic wills: Must be handwritten in full and signed by hand (CC Art. 505).
Benefits of Digital Signing for Businesses
Switching from paper to electronic signatures delivers concrete, measurable advantages for businesses:
Speed: Contracts that previously spent days in the post are signed and returned within minutes. This accelerates deal closures significantly — especially for contracts involving multiple parties.
Cost savings: Printing, paper, postage and physical archiving costs are eliminated. For an SME processing 50 contracts per month, this quickly adds up to several thousand francs per year.
Legal certainty: Every signing event is fully documented. An audit trail records who signed what and when — including IP address, timestamp and proof of identification. In the event of a dispute, this is far more robust than a scanned signature.
Audit trail: The signed document contains cryptographic proof that it has not been altered since signing. Any subsequent change is immediately detectable.
Location independence: Contracts can be signed from anywhere — the office, home, on the move or abroad. All the signer needs is a browser and an internet connection.
How Digital Signing Works in Practice
The signing process is simpler than many think. A document is legally signed in four steps:
- Upload the document: The sender uploads the document (PDF, Word or other format) to the signing platform.
- Invite signers: The sender enters the signers' email addresses and selects the desired signature level (SES, AES or QES).
- Sign in the browser: The signers receive an email with a link, open the document in their browser and sign — depending on the level, via email confirmation, SMS code or two-factor authentication.
- Receive the signed document: All parties receive the signed document including the audit trail as proof.
The entire process typically takes just a few minutes — regardless of where the signers are located.
Experiences from Practice
Businesses that already sign digitally regularly report on LinkedIn that they have seen significantly faster contract turnaround and less administrative overhead. The experiences show: the switch from paper to digital signing pays off fastest for SMEs. Instead of waiting days for signed contracts to arrive, documents are often completed on the same day. HR departments and sales teams benefit the most from the time savings — exactly where employment contracts, quotations and orders are part of daily operations.
actaSIGN — Sign Digitally from CHF 11
actaSIGN is a Swiss signing platform that supports all three signature levels (SES, AES, QES). Browser-based, ZertES-compliant, and available from CHF 11 per user per month.
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