<P> 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, was an English and later British joint - stock company, which was formed to pursue trade with the "East Indies" (in present - day terms, Maritime Southeast Asia), but ended up trading mainly with Qing China and seizing control of the Indian subcontinent . </P> <P> 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 . </P> <P> 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 . Initially the government owned no shares and had only indirect control . </P> <P> 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 battles of Plassey and Buxar, in which the British defeated 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 the whole Indian subcontinent 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 . </P>

Who permitted the british to establish their company in india