<P> In 1578, Elizabeth I granted a patent to Humphrey Gilbert for discovery and overseas exploration . That year, Gilbert sailed for the Caribbean with the intention of engaging in piracy and establishing a colony in North America, but the expedition was aborted before it had crossed the Atlantic . In 1583, he embarked on a second attempt, on this occasion to the island of Newfoundland whose harbour he formally claimed for England, although no settlers were left behind . Gilbert did not survive the return journey to England, and was succeeded by his half - brother, Walter Raleigh, who was granted his own patent by Elizabeth in 1584 . Later that year, Raleigh founded the Roanoke Colony on the coast of present - day North Carolina, but lack of supplies caused the colony to fail . </P> <P> In 1603, James VI, King of Scots, ascended (as James I) to the English throne and in 1604 negotiated the Treaty of London, ending hostilities with Spain . Now at peace with its main rival, English attention shifted from preying on other nations' colonial infrastructures to the business of establishing its own overseas colonies . The British Empire began to take shape during the early 17th century, with the English settlement of North America and the smaller islands of the Caribbean, and the establishment of joint - stock companies, most notably the East India Company, to administer colonies and overseas trade . This period, until the loss of the Thirteen Colonies after the American War of Independence towards the end of the 18th century, has subsequently been referred to by some historians as the "First British Empire". </P> <P> The Caribbean initially provided England's most important and lucrative colonies, but not before several attempts at colonisation failed . An attempt to establish a colony in Guiana in 1604 lasted only two years, and failed in its main objective to find gold deposits . Colonies in St Lucia (1605) and Grenada (1609) also rapidly folded, but settlements were successfully established in St. Kitts (1624), Barbados (1627) and Nevis (1628). The colonies soon adopted the system of sugar plantations successfully used by the Portuguese in Brazil, which depended on slave labour, and--at first--Dutch ships, to sell the slaves and buy the sugar . To ensure that the increasingly healthy profits of this trade remained in English hands, Parliament decreed in 1651 that only English ships would be able to ply their trade in English colonies . This led to hostilities with the United Dutch Provinces--a series of Anglo - Dutch Wars--which would eventually strengthen England's position in the Americas at the expense of the Dutch . In 1655, England annexed the island of Jamaica from the Spanish, and in 1666 succeeded in colonising the Bahamas . </P> <P> England's first permanent settlement in the Americas was founded in 1607 in Jamestown, led by Captain John Smith and managed by the Virginia Company . Bermuda was settled and claimed by England as a result of the 1609 shipwreck of the Virginia Company's flagship, and in 1615 was turned over to the newly formed Somers Isles Company . The Virginia Company's charter was revoked in 1624 and direct control of Virginia was assumed by the crown, thereby founding the Colony of Virginia . The London and Bristol Company was created in 1610 with the aim of creating a permanent settlement on Newfoundland, but was largely unsuccessful . In 1620, Plymouth was founded as a haven for Puritan religious separatists, later known as the Pilgrims . Fleeing from religious persecution would become the motive of many English would - be colonists to risk the arduous trans - Atlantic voyage: Maryland was founded as a haven for Roman Catholics (1634), Rhode Island (1636) as a colony tolerant of all religions and Connecticut (1639) for Congregationalists . The Province of Carolina was founded in 1663 . With the surrender of Fort Amsterdam in 1664, England gained control of the Dutch colony of New Netherland, renaming it New York . This was formalised in negotiations following the Second Anglo - Dutch War, in exchange for Suriname . In 1681, the colony of Pennsylvania was founded by William Penn . The American colonies were less financially successful than those of the Caribbean, but had large areas of good agricultural land and attracted far larger numbers of English emigrants who preferred their temperate climates . </P>

When did the british empire begin to decline