What is meant by an alien corporation?

An alien corporation refers specifically to a corporation that is chartered or incorporated in a foreign country but conducts business in a different country, such as the United States. This definition aligns with the correct choice, as it emphasizes the scenario where a corporation is set up in one jurisdiction (the foreign country) and then conducts its operations in another (the state or country where it is doing business).

Understanding this context is crucial because it highlights important distinctions between domestic corporations (those incorporated within a particular nation) and foreign or alien corporations (those operating within a nation but incorporated elsewhere). The presence of such corporations can impact local laws, business regulations, and tax considerations, which are vital for both legal professionals and businesses operating on an international scale.