The Levant Company was the first British entity to receive a charter for overland trade with India and the East in 1581. The more famous East India Company (EIC) received its charter later in 1600 specifically for sea-based trade via the Cape of Good Hope.

Warren Hastings became the first Governor-General of India (specifically Fort William) in 1774 following the Regulating Act of 1773. He established a system of civil and criminal courts including the Sadar Diwani Adalat (Court of Appeal). Note that the Permanent Settlement was introduced by Lord Cornwallis, and the Doctrine of Lapse was popularized by Lord Dalhousie.

The Portuguese were the first Europeans to establish a factory in Bengal, choosing Hooghly as their primary center in the late 16th century. While Bandel also has Portuguese history, Hooghly was their main commercial and political hub in the region until they were expelled by the Mughals.

The success of the British East India Company can be attributed to a combination of political, military, and social factors. The lack of a unified national identity in India allowed the British to play local rulers against each other. Furthermore, their superior military organization, Western training, modern weaponry, and the ability to recruit and pay Indian soldiers (sepoy) consistently gave them a significant advantage.

The Portuguese established their first fortress in India at Cochin (modern-day Kochi) in 1503. This fortification served as their primary headquarters and a crucial base for controlling the spice trade in the Indian Ocean before they shifted their capital to Goa in 1530.

The Royal Firman issued by Emperor Farrukhsiyar in 1717 granted the British East India Company significant trade concessions. Specifically, the exemption from paying all custom duties and taxes in Bengal and Surat in exchange for an annual payment became a major source of conflict, as it deprived the local Nawabs of essential revenue and led to the misuse of trade permits (dastaks).

The British East India Company was granted its Royal Charter by Queen Elizabeth I on December 31, 1600. At that time, the Mughal Emperor Akbar was ruling India (reign: 1556–1605). It was only during the reign of his successor, Jahangir, that the company established its first permanent factory.

The Dutch East India Company established several trading posts across the Indian subcontinent to facilitate their trade in spices and textiles. Their key settlements included Nagappattinam on the Coromandel Coast, Chinsurah in Bengal, and Machilipatnam, along with significant presence in Surat, Bharuch, Agra, Cochin, Ahmedabad, and Patna.

The First Carnatic War ended with the Treaty of Aix-la-Chapelle (1748). The Third Carnatic War concluded with the Treaty of Paris (1763), which ended French power in India. The Second Carnatic War was largely inconclusive, and the First Mysore War ended with the defeat of the British at the hands of Hyder Ali.

Captain William Hawkins was the first representative of the English East India Company to visit the Mughal court. He arrived at Surat in 1608 aboard the ship 'Hector' and traveled to Agra to meet Emperor Jahangir, seeking permission to establish a factory.