What is eIDAS?

eIDAS (Electronic Identification, Authentication and Trust Services) is an EU regulation (910/2014) that governs electronic identification and trust services for electronic transactions in the internal market. The regulation creates a common legal framework that ensures electronic signatures, seals, and timestamps are legally binding and recognized in all EU member states. Its purpose is to enable secure and seamless cross-border digital business with the same legal standing as paper-based processes.

What is eIDAS?

The eIDAS Regulation is the backbone of digital Europe. Before eIDAS, the legal status of digital signatures was fragmented across different countries, creating uncertainty in international agreements. eIDAS establishes that an electronic signature cannot be denied legal effect solely because it is in electronic form.

The regulation defines three levels of electronic signatures, depending on the level of security and identification:

Simple Electronic Signature (SES): The lowest level, such as a scanned handwritten signature or a “click-to-approve” button. It is legally binding but carries the lowest evidentiary value in the event of a dispute.

Advanced Electronic Signature (AES): Requires a higher level of security. It must be uniquely linked to the signer, enable identification, be created using data under the signer’s sole control, and be linked to the document in such a way that any subsequent changes can be detected. Formify primarily uses AES to balance security and user-friendliness.

Qualified Electronic Signature (QES): The highest level. It is an AES created using a dedicated secure device (QSCD) and based on a qualified certificate issued by a trusted provider (TSP). A QES has the same automatic legal status as a handwritten signature throughout the EU.

Why eIDAS is critical for businesses

Complying with eIDAS is about eliminating legal risk and enabling global scalability:

Cross-border recognition: Under eIDAS, a signature that meets the requirements in one EU country must be accepted in all others. This is essential for the internal market.

NIS2 compliance: According to ENISA (2025), the use of trusted services under eIDAS is a central part of meeting cybersecurity and risk management requirements under the new NIS2 Directive.

Legal evidentiary strength: In legal proceedings, AES and QES provide significantly stronger evidence than SES. It is extremely difficult for a party to claim they did not sign a document if an AES with strong identification (such as BankID) was used.

Market trust: According to KPMG (2025), regulatory compliance is the single most important factor for trust when adopting new technology. Companies that use eIDAS-compliant workflows are perceived as more professional and secure by their counterparties.

Practical scenario: Cross-border employment agreement

Imagine a Swedish tech company hiring a developer in Germany.

The situation: The company sends an employment agreement digitally. German employment law often sets high formal validity requirements for certain types of clauses.

The eIDAS solution: By using a secure signing link that supports the eIDAS AES standard, the company can ensure that the signature is legally robust in both Sweden and Germany.

The result: The parties do not need to send paper documents by post. By using a tenant-isolated signing environment, the agreement details also remain protected against Counterparty AI Risk, while the eIDAS level ensures that the signature will hold up in any future employment dispute.

FAQ

Is an e-signature valid in court?
Yes. Under eIDAS Article 25, an electronic signature may not be denied legal effect or admissibility as evidence in legal proceedings solely because it is in electronic form.

What is the practical difference between AES and QES?
AES is sufficient for the vast majority of business agreements, such as NDAs, purchase agreements, and rental contracts. QES is usually required only for specific documents where the law explicitly demands it, such as certain property transfers in specific countries or in dealings with certain public authorities.

How does eIDAS 2.0 affect us?
The new update, eIDAS 2.0, introduces European Digital Identity Wallets, which will make it even easier for citizens to identify themselves and sign documents across borders with the highest level of security directly from their mobile devices.