Soon after the defeat of the Spanish Armada in 1588; a group of London merchants presented a petition to Queen Elizabeth I for permission to sail to the Indian Ocean. Despite early sailing disasters; the East India Company was formed in 1600. It became the British East India Company after the Treaty of Union in 1707. It was a joint-stock company that was formed initially for pursuing trade with the East Indies; but that ended up trading mainly with the Indian subcontinent and China; mainly in cotton; silk; indigo dye; saltpetre; tea; and opium.

The Company long held a privileged position within the British government; and was frequently granted special rights and privileges; including trade monopolies and exemptions; which caused much resentment among its competitors. The Company remained a powerful force until it was dissolved in 1874.