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Why Companies Should Sign Up For Electronic Signatures

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For whatever reason, companies are not generally implementing the electronic signature, and even when they do, rarely to its full potential. They use it on a limited number of occasions and for only a limited number of its applications.

Yet there are many occasions when using electronic signatures makes sense.

The first application is for filing tax forms via the Internet (e-Tax). Since October 1, 2008, companies (both corporations or SAs and limited liability companies or SRLs) are required to file their voluntary tax declarations via the Internet.

This declaration through data transmission requires the user to have a user’s certificate installed in its browser. Users may get a certificate issued by the National Mint, or any other electronic certificate permitted by the State Tax Agency (AEAT). The AEAT will no longer admit voluntary tax declarations on paper.

The second application where electronic signatures make sense is the electronic invoice – e-invoice. Organizations save money and space by using electronic invoicing and also secure economic aid offered under Plan Avanza 2006-2010. Importantly also, electronic invoices are increasingly required for organizations contracting with the public sector. Obligatory use will be extended progressively following the approval of the Ministry Order implementing the regulations on the use of the electronic invoice in contracts with the public sector. Initially, companies which cannot submit an abbreviated profit and loss account must use the electronic invoice. This requirement will be gradually extended to individuals and legal entities depending on their nature and business volumes by November 2010.

At the same time, the Administration and the autonomous communities will foment the use of the electronic invoice among companies, professionals, and other economic agents in the market, especially among small and medium-sized enterprises and micro-companies to promote the development of electronic commerce.

Finally, electronic signatures are helpful for electronic communications between companies and their stockholders, where the security afforded by electronic signatures can be useful. Limited liability companies (SRLs) have more flexible regulations than corporations (SAs), though both types of companies may include the use of electronic communications in their bylaws.

Limited liability companies can, for example, have an agreement requiring or allowing (as the case may be) that: the company or its directors have an e-mail address for communication with the stockholders; the stockholders’ call to a General Stockholders Meeting be made by e-mail instead of announcements (Official Gazette of the Commercial Registry, newspaper); the Board of Directors Meeting be called by e-mail; resolutions be adopted via videoconference and/or the resolutions adopted by the Board of Directors be validated by electronic vote without holding a session; or electronic voting or representation be done by e-mail.

The two areas where electronic signatures should be used are contracting with the Administration through technology platforms (G2B) and the use of electronic arbitration to resolve consumer disputes.
 
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