Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 3

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 3
Chunk 3
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 the Companies Registry of Hong Kong as a
registered Trust or Company Service Providers (“ TCSPs”) to carry out trust or company service business in Hong Kong.

Holding Company Structure

TFGL is a holding company incorporated in the
Cayman Islands with no material operations of its own. We conduct our operations primarily in Hong Kong through our subsidiaries in Hong
Kong. Investors in our Class A Ordinary Shares are purchasing equity securities of TFGL, the Cayman Islands holding company, instead of
shares of our Operating Subsidiaries in Hong Kong. Investors in our Class A Ordinary Shares should be aware that they may never directly
hold equity interests in our Operating Subsidiaries.

As a result of our corporate structure, TFGL’s
ability to pay dividends may depend upon dividends paid by our Operating Subsidiaries. If our existing Operating Subsidiaries or any newly
formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends
to us.

Transfers of Cash between Our Company and Our
Subsidiaries

Our management monitors the cash position of each
entity within our organization regularly and prepare budgets on a monthly basis to ensure each entity has the necessary funds to fulfill
its obligation for the foreseeable future and to ensure adequate liquidity. In the event that there is a need for cash or a potential
liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board of directors, we will enter into
an intercompany loan for the subsidiary.

For TFGL to transfer cash to its subsidiaries,
TFGL is permitted under the laws of the Cayman Islands and its memorandum and articles of association to provide funding to our subsidiaries
incorporated in the British Virgin Islands and Hong Kong through loans or capital contributions without restrictions on the amount
of the funds. TFGL’s subsidiaries formed under the laws of the British Virgin Islands are
permitted under the laws of the British Virgin Islands to provide funding to their respective subsidiaries formed in Hong Kong through
loans or capital contributions without restrictions on the amount of the funds.

For the subsidiaries to transfer cash to TFGL,
according to the BVI Business Companies Act 2004 (as amended), a British Virgin Islands company may make dividends distribution to the
extent that immediately after the distribution, such company’s assets do not exceed its liabilities and that such company is able
to pay its debts as they fall due. According to the Companies Ordinance of Hong Kong, a