Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 124

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 124
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 CSRC or other relevant PRC regulatory
agencies subsequently determine that prior approval is required, failure of obtaining such approval may lead us face regulatory actions
or other sanctions from the CSRC or other PRC regulatory agencies. These regulatory agencies may impose fines and penalties on our operations
in China, limit our ability to pay dividends outside of China, limit our operations in China, delay or restrict the repatriation of the
proceeds from this Offering into China or take other actions that could have a material adverse effect on our business, financial condition,
results of operations and prospects, as well as the Offering of the Shares.

Under the PRC Enterprise Income Tax Law, we may be classified as a “Resident Enterprise” of China. Such classification will likely result in unfavorable tax consequences to us and our non-PRC shareholders.

China passed the PRC Enterprise Income Tax Law,
or the EIT Law, and its implementing rules, both of which became effective on January 1, 2008, and as amended in December 2018.
Under the EIT Law, an enterprise established outside of China with “de facto management bodies” within China is considered
a “resident enterprise,” meaning that it can be treated in a manner similar to a Chinese enterprise for enterprise income
tax purposes. The implementing rules of the EIT Law define de facto management as “substantial and overall management and control
over the production and operations, personnel, accounting, and properties” of the enterprise.

On April 22, 2009, the State Administration
of Taxation of China issued the Notice Concerning Relevant Issues Regarding Cognizance of Chinese Investment Controlled Enterprises Incorporated
Offshore as Resident Enterprises pursuant to Criteria of de facto Management Bodies, or the Notice, further interpreting the application
of the EIT Law and its implementation to offshore entities controlled by a Chinese enterprise or group. Pursuant to the Notice, an enterprise
incorporated in an offshore jurisdiction and controlled by a Chinese enterprise or group will be classified as a “non-domestically
incorporated resident enterprise” if (i) its senior management in charge of daily operations reside or perform their duties
mainly in China; (ii) its financial or personnel decisions are made or approved by bodies or persons in China; (iii) its substantial
assets and properties, accounting books, corporate stamps, board and shareholder minutes are kept in China; and (iv) all of its directors
with voting rights or senior management reside in China. A resident enterprise would