The East India Company (EIC), also known as the Honourable East India Company (HEIC) or the British East India Company and informally as John Company,[1] was an English and later British joint-stock company,[2] which was formed to pursue trade with the East Indies but ended up trading mainly with the Indian subcontinent and Qing China.
Originally chartered as the "Governor and Company of Merchants of London trading into the East Indies", the company rose to account for half of the world's trade, particularly in basic commodities including cotton, silk, indigo dye, salt, saltpetre, tea and opium. The company also ruled the beginnings of the British Empire in India.[3]
The company received a Royal Charter from Queen Elizabeth I on 31 December 1600, making it the oldest among several similarly formed European East India Companies. Wealthy merchants and aristocrats owned the Company's shares.[4] Initially the government owned no shares and had only indirect control.
During its first century of operation the focus of the Company was trade, not the building of an empire in India. Company interests turned from trade to territory during the 18th century as the Mughal Empire declined in power and the East India Company struggled with its French counterpart, the French East India Company (Compagnie française des Indes orientales) during the Carnatic Wars of the 1740s and 1750s. The Battle of Plassey and Battle of Buxar, which saw the British, led by Robert Clive, defeat the Indian powers, left the company in control of Bengal and a major military and political power in India. In the following decades it gradually increased the extent of the territories under its control, ruling either directly or indirectly via local puppet rulers under the threat of force by its Presidency armies, much of which were composed of native Indian sepoys.
The company eventually came to rule large areas of India with its own private armies, exercising military power and assuming administrative functions.[5] Company rule in India effectively began in 1757 and lasted until 1858 when, following the Indian Rebellion of 1857, the Government of India Act 1858 led to the British Crown assuming direct control of India in the form of the new British Raj.
Despite frequent government intervention, the company had recurring problems with its finances. It was dissolved in 1874 as a result of the East India Stock Dividend Redemption Act passed one year earlier, as the Government of India Act had by then rendered it vestigial, powerless, and obsolete. The official government machinery of British India had assumed its governmental functions and absorbed its armies.
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