<Tr> <Th> Formerly called </Th> <Td> Plymouth Company London Company </Td> </Tr> <Tr> <Th> Type </Th> <Td> joint stock company </Td> </Tr> <P> The Virginia Company refers collectively to two joint stock companies chartered by James I on 10 April 1606 with the goal of establishing settlements on the coast of North America . The companies were called the "Virginia Company of London" (or the London Company) and the "Virginia Company of Plymouth" (or the Plymouth Company); they operated with identical charters but with differing territories . An area of overlapping territory was created within which the two companies were not permitted to establish colonies within one hundred miles of each other . The Plymouth Company never fulfilled its charter, but its territory was claimed by England and became New England . </P> <P> As corporations, the companies were empowered by the Crown to govern themselves, and they conferred that right onto their colonies . The Virginia Company failed in 1624, but the right to self - government was not taken from the colony . The principle was thus established that a royal colony should be self - governing, and this formed the genesis of democracy in America . </P>

Why is the charter of the virginia company important