Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 1

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 3
Chunk 1
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 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

We
currently have not maintained any cash management policies that dictate the purpose, amount and procedure of cash transfers between
the Company, our subsidiaries, or investors. Rather, the funds can be transferred in accordance with the applicable PRC laws and regulations.
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.

Under
existing PRC foreign exchange regulations, payment of current account items, such as profit distributions and trade and service-related
foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange,
or the SAFE, by complying with certain procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies
to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with
certain procedures under PRC foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate
shareholders of our corporate shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities
is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as
the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future
to foreign currencies for current account transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company
only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. As of the date
of this report, there are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and
out of Hong Kong (including funds from Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities.
Cayman Islands law prescribes that a company may only pay dividends out of its profits. Other than that, there is no restrictions