Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 2

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 3
Chunk 2
---
 on Lichen
International Limited’s ability to transfer cash to investors. See “ Risk Factors - Risks Related to Doing Business in China
- To the extent cash or assets in the business is in the PRC or Hong Kong or a PRC or Hong Kong entity, the funds or assets may not be
available to fund operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions
and limitations on the ability of us or our subsidiaries by the PRC government to transfer cash or assets,” “ Risk Factors
- Risks Related to Doing Business in China - We rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund
any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could
have a material adverse effect on our ability to conduct our business,” and “ Risk Factors - Risks Related to Doing Business
in China - Our PRC subsidiaries are subject to restrictions on paying dividends or making other payments to us, which may have a material
adverse effect on our ability to conduct our business.”

As
a holding company, we may rely on dividends and other distributions on equity paid by our subsidiaries, including those based in the PRC,
for our cash and financing requirements. If any of our PRC subsidiaries incurs debt on its own behalf in the future, the instruments governing
such debt may restrict their ability to pay dividends to us. Lichen International Limited is permitted under the laws of the Cayman Islands
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. Our subsidiaries are permitted under the respective laws of the British Virgin Islands
and Hong Kong to provide funding to Lichen International Limited through dividend distribution without restrictions on the amount of the
funds. There are no restrictions on dividends transfers from HK to BVI and BVI to the Cayman Islands. Current PRC regulations permit our
WFOE to pay dividends to the Company only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards
and regulations.

The
PRC has currency and capital transfer regulations that require us to comply with certain requirements for the movement of capital. The
Company is able to transfer cash (US Dollars) to its PRC subsidiaries through an investment (by increasing the Company’s registered
capital in a PRC subsidiary). The Company’s subsidiaries within China can transfer funds