The English East India Company (EEIC) was based in England. Its purpose was to trade with the East Indies. The East Indies was the name given for the area of Southeast Asia including Malaysia and Indonesia. The company was composed of stockholders who gave their goods to be traded and in return got a part of the money made from selling those goods. The company had Dutch competitors who were also trading with the East Indies. After a brutal massacre by the Dutch they acquired the Netherlands East Indies. Some British soldiers on ships continued war for the monopoly of trade with the east Indies.

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In 1657 it was ordered that the EEIC be the only company that would trade with the East Indies. Because of this, many other traders wanted to join it for they had no other choice. The company refused. Because of this the traders made their own company called the New Company. The English east India Company reacted to this by buying this new company and making it a part of their own. The new joined company was known as "The United Company of Merchants of England Trading to the East Indies". An EEIC company official named Robert Clive, defeated the French in India, making sure that he British were the main power in India. The India act in 1784 let the British have control over Indian affairs in the EEIC. Through this, the British gained more and more control over India. In 1813 the EEIC lost its control over Indian trade with the East Indies. And in 1833, the company lost its monopoly of trade with China. The British government made an act called the Act for the Better Government of India. this act stated that the government shall take over all matters of the company that deal with the government. The company ended on January 1, 1874 through the East India Stock Dividend Redemption Act.