Corporatization is the process of transforming state assets, government agencies, or
municipal organizations into
corporations. It refers to a restructuring of government and public organizations into joint-stock, publicly listed companies in order to introduce corporate and
business management techniques to their administration. The result of corporatization is the creation of
state-owned corporations where the government retains a majority ownership of the corporation's stock. However, in many cases, corporatization is a precursor to partial or full
privatization, which involves a process where formerly public functions and public enterprises are sold to private business entities by listing their shares on publicly traded
stock exchanges.