Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 17

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 4
Chunk 17
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 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 to each other when necessary through the way of current lending. The
transfer of funds among companies are subject to the Provisions on Private Lending Cases, which was implemented on August 20, 2020 to
regulate the financing activities between natural persons, legal persons and unincorporated organizations. As advised by our PRC counsel,
Tianyuan Law Firm, the Provisions on Private Lending Cases does not prohibit using cash generated from one subsidiary to