The article charts the transition of the East India Company from a mere business house to the ruler of a subcontinent. It also shows the significant impact the company had on Britain's economic history.

The EIC was formed on December 31, 1600 A D and was given English monopoly on all trade with the East Indies in order to compete with Dutch merchants. It was incorporated by a royal charter, under the title "The Honorable Company of London Merchants Trading into the East Indies," by Queen Elizabeth which became known as the East India Company. There were 125 shareholders in the original the EIC, with a capital of £72,000.

The EIC gained political supremacy when Robert Clive, one of the company's military officials defeated the Nawab of Bengal in the famous Battle of Plassey in 1757. This was followed by the granting of revenue-collection rights in the State on the Emperor's behalf. The practices of the company left Bengal, once a rich and prosperous province into an impoverished land. Suddenly the company found itself administering the whole of Bengal, which it was not suited for.

The 18thcentury was a very important period in the EIC's history. The EIC expanded into Northern India and was increasingly involved in the China trade. Its trading commodities included cotton, silk piece goods, indigo, and saltpeter, with spices from South India. The company extended its activities to the Persian Gulf, Southeast Asia and East Asia. In London, the company's headquarters was given a better look to reflect its importance as the headquarters of a great company.

East India Company, Business House, Britains Economic history, East Asia, headquarters, Parliament Act, cotton, silk piece goods, indigo, and saltpeter, with spices, Dutch merchants, London Merchants, Persian Gulf, Southeast Asia, political supremacy, revenue-collection rights, massive military expenditures, military officials, Battle of Plassey, shareholders.