What is a digital certificate, and why is it important for businesses

What is a digital certificate, and why is it important for businesses?

A digital certificate is a type of electronic ID used to confirm the identity of individuals or organisations online. It ensures that documents signed electronically are both genuine and legally valid.

As more businesses move towards digital solutions, the use of digital certificates is becoming a game changer in how contracts, agreements, and other important documents are handled. Companies are increasingly opting for digital tools that authenticate signatories and safeguard the integrity of the information being exchanged. Digital certificates are secure, fast, and fully compliant with international regulations, such as the eIDAS framework.

The main benefits of digital certificates over traditional paper documents

1. Time-saving document management

Managing physical paperwork means printing, signing, scanning, and mailing – a process that can take days.
With a digital certificate, you can sign and send contracts in just minutes, from anywhere.

2. Reduced operational costs

By going paperless, businesses can cut back on costs for paper, ink, and shipping. Plus, you’ll no longer need to store physical documents, which reduces storage costs.

3. Time-saving document management with digital certificates

Documents signed electronically are protected by encryption, making them tamper-proof. And with compliance to regulations like eIDAS and GDPR, these digital documents are legally valid across the EU.

4. Better traceability and control

Every step of the process—from sending to signing—is recorded and traceable. This provides transparency and can serve as legal proof in case of disputes.

5. Helping businesses become more sustainable

Switching to digital processes reduces your company’s environmental impact by cutting down on paper use and eliminating the need for physical document transportation.

Digital certificates and electronic invoicing: a must for compliance

Many small and medium-sized businesses (SMEs) don’t realise that digital certificates are essential for issuing legally recognised electronic invoices. In countries where electronic invoicing is mandatory (such as Spain, starting in 2025), having a legal entity certificate allows you to automate invoicing and stay compliant.

Why it matters:

  • Avoid penalties for failing to meet tax requirements.
  • Save time on administrative tasks.
  • Streamline document exchange with clients and suppliers.

Digital certificates vs physical documents: A quick comparison

FeatureDigital CertificatePhysical Documents
Time to manageMinutesDays or weeks
Operational costsLowHigh
SecurityHigh, encryptedSusceptible to fraud
TraceabilityComplete, with detailed logsLimited
Legal validityGuaranteed by eIDASVaries by local laws

Types of digital certificates for SMEs

SMEs can choose from different types of digital certificates, depending on their needs. Here are the most common ones:

Personal Certificates

These are used to verify the identity of an individual online.
Common uses:

  • Signing employment or business contracts.
  • Interacting with government agencies for tax filings or tenders.

Business Certificates

These represent a company, allowing it to perform official activities as an entity.
Common uses:

  • Issuing legally valid electronic invoices.
  • Signing contracts on behalf of the business.

Electronic Seal Certificates

These ensure the integrity of documents created by the company and are useful for automating processes.
Common uses:

  • Automated notifications like order confirmations.
  • Certifying documents such as legal agreements or insurance policies.

Server Certificates

These are linked to a specific device or platform, providing secure connections and data transfers.
Common uses:

  • Securing websites with HTTPS.
  • Protecting e-commerce platforms and client portals.

How to choose the right certificate for your business

The type of digital certificate you need depends on your company’s size, industry, and specific requirements. For example:

  • If you interact with clients directly, personal or business certificates are essential for signing contracts and issuing invoices.
  • If your company handles a large volume of communication, an electronic seal certificate will streamline operations and provide legal backing.
  • If you run an online store or client portal, securing your platform with a server certificate is a must.

Success stories

1. E-commerce business: Gaining customer trust and boosting sales

The challenge: An online clothing retailer struggled with trust issues, as many customers hesitated to complete their purchases due to concerns about the security of their personal and payment information.
The solution: The company implemented a server certificate (HTTPS) to secure transactions and protect customer data. They also used certified email notifications to automatically confirm orders and shipments.
Results:

  • Conversion rates increased by 25% due to the added trust from the secure browsing experience.
  • Customer service inquiries about order status dropped by 30%.

2. Education business: Streamlining enrolment

The challenge: A language academy experienced delays in the enrolment process, as parents had to visit the office to sign contracts, limiting the academy’s capacity to meet growing demand.
The solution: They adopted an advanced e-signature solution, allowing parents to sign contracts remotely from any device. This system was integrated into their management software to automate contract distribution.
Results:

  • Enrolment time dropped from 5 days to just 2 hours.
  • Enrolments increased by 15%, thanks to the removal of logistical barriers.

3. Real estate agency: Simplifying rental contracts

The challenge: A real estate agency spent too much time managing rental contracts, including sending physical copies to tenants and storing them. This process was time-consuming and costly.
The solution: They implemented advanced e-signature tools to handle rental contracts digitally. They also used electronic seal certificates to validate these documents.
Results:

  • Operational costs related to printing and mailing reduced by 50%.
  • Deals were finalised in under 24 hours, improving the experience for landlords and tenants.

4. Logistics company: Improving delivery tracking and communication

The challenge: A logistics company needed a way to certify deliveries and resolve disputes with clients who claimed they hadn’t received their orders.
The solution: They used certified SMS and email notifications to keep customers informed about the status of their deliveries. Drivers also began digitally signing receipts upon delivery.
Results:

  • Disputes related to delivery decreased by 40%.
  • Customer satisfaction improved thanks to more transparent communication.

5. Creative agency: Quick contracts with international clients

The challenge: A graphic design agency faced challenges closing contracts with international clients due to time zone differences and the logistics of sending physical documents.
The solution: They implemented an advanced e-signature platform, allowing them to send, sign, and return contracts in minutes, regardless of location.
Results:

  • Contract turnaround time was reduced from 7 days to less than 24 hours.
  • International client acquisition increased by 20%.

Why Lleida.net is the best choice for digital certificates

Lleida.net is a recognised leader in trust services, offering:

  • Certified notifications: Legally valid email and SMS notifications. Learn more on our Advanced E-Signature page.
  • Advanced e-signature: Our Click & Sign platform for fast and secure document signing.
  • Regulatory compliance: All our services comply with eIDAS and GDPR regulations.

We also have an international network covering over 15 countries and tailored solutions for sectors such as finance, telecommunications, and legal.

FAQs

Is it safe to use a digital certificate?
Yes, digital certificates use advanced encryption to ensure the authenticity and security of documents.

Can I use a digital certificate on my mobile device?
Yes, digital certificates are compatible with mobile phones, tablets, and computers.

Is it legally valid?
Yes, as long as it complies with eIDAS, it holds the same legal weight as a handwritten signature.

Digital certificates are essential for optimizing business management, enhancing security, and ensuring legal compliance.

Digital certificates make document management easier, secure your processes, and ensure legal compliance. Businesses of all sizes are adopting this technology to optimise their operations.

At Lleida.net, we’re here to help you embrace digital transformation.

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