Stock corporations are the most common types of foreign corporations operating in Switzerland.  This type of corporation has six kinds, all allowed and regulated by Swiss laws.  The kinds of stock corporations include holding company, domiciliary company, auxiliary company, mixed company, service company and branch company.  

A domiciliary company is a form of stock corporation that is run and controlled abroad.  This type of company does not physically exist in the country; although, there is a registered business in the country.  A domiciliary company merely receives income from foreign sources.  This type of company is set up in order to save money from taxes levied in corporate tax, income tax, net worth tax and capital gains tax.  A domiciliary company enjoys a tax reduction or a zero-tax in cantonal levels.

An auxiliary company is basically a domiciliary company, but this type of company carries out a portion of its operation in the country.  Only seven cantons of Switzerland allow creation of auxiliary companies.  This company does not receive any tax benefits on a federal level and tax treatment differs from one canton to another.  In general though, local source revenues are taxed at 5% while foreign source revenues are tax exempt.  

Service companies are stock corporations primarily devoted to providing assistance or service to foreign companies which are members of a group of which the company is a part of as well.  Generally, this type of company does not generate revenue from other companies not part of the group.  This company is not exempted from tax on a federal level and is taxed on a cantonal level according to the service it provides.  
Mixed companies are stock corporations that are neither domiciliary companies nor holding companies but possess the qualities of these two companies.  A mixed company does not find tax relief in the federal level but finds tax benefits on a cantonal level if the company is foreign controlled and with 80% foreign source revenue.

Branch companies must be registered in the Commercial Registry of its place of domicile.  These companies local source income are taxed accordingly at the federal and cantonal levels although they are not required to submit financial statements annually.