Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 130

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 130
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 Chinese companies to non-PRC-resident
enterprises, unless reduced under treaties or arrangements between the PRC central government and the governments of other countries or
regions where the non-PRC resident enterprises are tax resident. See “Risk Factors — 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 of the date of this prospectus, 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 the transfer of funds involving money laundering and criminal activities.
However, there is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions
in the future.

As a result of the above, 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.

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.

We are a holding company incorporated in the Cayman
Islands. We may need dividends and other distributions on equity from our PRC subsidiaries to satisfy our liquidity requirements, including
the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. If our PRC subsidiaries
incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other
distributions to us.

Current PRC regulations permit our PRC subsidiaries
to pay dividends to us only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations.
In addition, our PRC subsidiaries are required to set aside at least 10% of their respective accumulated profits each year, if any, to
fund certain reserve funds until the total amount set aside reaches 50% of their respective registered capital. Our PRC subsidiaries may
also allocate a portion of their respective after-tax profits based on PRC accounting standards to employee welfare and bonus funds at
their discretion