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  • Writer's pictureAccounting Adviser

What does the Electronic Transactions mean for businesses?

An electronic transaction here means the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other public or private organisations, conducted over computer-mediated networks.

Electronic records are recognised and valid

Electronic records include emails, digital images, PowerPoint presentations, websites, etc.

When contracts, records or information in its original form are legally required, an electronic copy is enough as legal proof. The use of electronic communication to create the contract does not affect its validity.

Electronic and digital signatures have the same weight as written signatures

An e-signature can be anything from a mouse click to a secured algorithm provided that identifies a person, indicates his or her intention and is appropriate. A digital signature is a kind of electronic signature that provides secure validation and authentication. You can get a certificate from the Certification Authority.

A company can save cost by using electronic signatures as compared to the traditional handwritten signatures. A document can be sent by means of e-mail and can be signed in a few minutes, useful for businesses that have a global presence.

Cases where companies use digital signatures

With the government agencies: Companies use digital signatures when dealing with the government for transactions like filing forms with ACRA, and filing tax returns.

With partners and customers: Contracts with an e-signature are legally valid and enforceable under the law in Singapore as long as they correspond to the general contract law.

Internally for corporate issues: The Board of Directors may approve a company resolution passed at a Board meeting by attaching their digital signatures to it, or producing any other notes like HR documents and employment contracts. The signature displays the date of signing and is especially convenient in cases where the company maintains all its records electronically.

Electronic Contracts are recognised

All electronic contracts are legally valid and enforceable by law in Singapore.

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