The area consisting of the present states of Colombia, Ecuador, Panama, and Venezuela in 1564 becomes part of the viceroyalty of Peru as the New Kingdom of Granada, with its capital in Bogotá.

The Royal Audiencia, created by a royal decree of July 17, 1549, had been given authority over the provinces of Santa Marta, Río de San Juan, Popayán, Guayana and Cartagena de Indias.

The Audiencia was charged primarily with dispensing justice, but it was also to oversee the running of government and the settlement of the territory.

It held its first session on April 7, 1550, in a mansion on the Plaza Mayor (today, Plaza de Bolívar) at the site which today houses the Colombian Palace of Justice.

Initially all of the justices held executive power, but this proved ineffective.

Despite several royal inspectors (visitadores) sent to improve the audiencia's functioning, its performance had not improved.

Executive power is centralized in 1564 in one officer, the Audiencia "president", who is also made governor and captain general.

(For this reason the region is also referred to as a presidencia at this time.)

With these two offices, the president oversees the civilian government and holds the command over the kingdom's military forces.

The president is loosely dependent upon the Viceroy of Peru at Lima in administrative and military matters.

The jurisdictional boundaries of the Audiencia encompass the territory of the kingdom.