The British East India Company was established when Queen Elizabeth I granted a Royal Charter to a group of merchants on December 31, 1600. The charter provided exclusive rights to trade with the East Indies, effectively marking the beginning of British commercial interests on the subcontinent. The company was granted the authority to establish trade relations and secure the monopoly over the export of spices, textiles, and other precious goods from Asia, which were highly sought after in England and Europe at the time. This charter served as an official endorsement of the company’s operations, allowing it to pursue its commercial agenda with state support.

In the early years, the company faced stiff competition from other European powers engaged in the spice trade, particularly the Dutch. Nevertheless, the East India Company slowly expanded its operations, setting up trading posts and negotiating treaties with local rulers. Over the next century, the company's commercial interests evolved into political and military engagements, leading to an increasing presence in Indian territories. The original focus on trade gradually shifted towards territorial control, culminating in significant involvement in the administration of large parts of India.

The impact of the establishment of the East India Company cannot be overstated; it laid the groundwork for British colonial rule in India. The institution became a pivotal player in colonial expansion, changing the dynamics of trade, culture, and governance in the region, and altering the lives of millions of people over the centuries to follow.