Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 98

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 98
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 the Company or its subsidiaries have made no other transfers, dividends, or distributions to investors and no investors have made transfers, dividends, or distributions to the Company or its subsidiaries.

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As
of the date of this prospectus, no dividends, distributions or transfers has been made between Lichen China Limited and any of its subsidiaries.
For the foreseeable future, the Company intends to use the earnings for research and development, to develop new products and to expand
its production capacity. As a result, we do not expect to pay any cash dividends in the foreseeable future. Also, as of the date
of this prospectus, no cash generated from one subsidiary is used to fund another subsidiary’s operations and we do not anticipate
any difficulties or limitations on our ability to transfer cash between subsidiaries.

PRC Regulations

In
accordance with PRC regulations, a domestic company is required to maintain a surplus reserve of at least 10% of its annual after-tax
profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts.
The aforementioned reserves can only be used for specific purposes and may not be distributed as cash dividends. Lichen Zixun and Lichen
Education were established as domestic companies; therefore, each is subject to the above-mentioned restrictions on distributable profits.

As a result of PRC laws
and regulations that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends, in a general
reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company
as a dividend or otherwise.

Regulatory Permissions

Our Subsidiaries currently
have obtained all material permissions and approvals required for our operations in compliance with the relevant PRC laws and regulations
in the PRC, including the business license and agency bookkeeping license. The business license is a permit issued by Market Supervision
and Administration that allows the company to conduct specific business within the government’s geographical jurisdiction. The agency
bookkeeping license is issued by the financial department to enterprises, allowing enterprises to accept entrusted bookkeeping business.
The business license and agency bookkeeping license are the only two permissions and approvals that our PRC subsidiaries are required
to obtain to conduct our business in China. In addition, Lichen China Limited, Legend Consulting BVI and Legend Consulting HK are not
required to obtain any permissions or approvals from any Chinese authorities to operate our