Abstract: Business transactions are complex and require numerous documents to be completed. Moreover, managing signatures to every one of the documents in such transactions is also an important aspect. Traditional systems and method are not adept at handling the intricacies of complex business transactions. The disclosure herein relates to an improved system and method for managing virtual signatures and electronic documents, wherein documents are managed via an online web infrastructure, the documents are drafted, distributed, collected and verified using virtual signatures at the web infrastructure.